Economic And Market Report For September 22, 2011
US stocks fell as the Federal Reserve announced plans to buy $400 billion of long-term debt and announced risks to the economic outlook. The Dow was down 283 points to close at 11,124. The S&P 500 was down 35 points to close at 1,166. The NASDAQ was down 52 points to close at 2,538. In Europe, the FTSE was down 75 on Wednesday to close at 5,288. The Dax was down 137 points Wednesday to close at 5,433. In Asia, the Nikkei closed at 8,565. The Hang Seng closed at 18,055. In the commodities markets, gold closed at $1,781 an ounce, while oil has continued to drop to close at $84 a barrel. The euro has fallen all the way to $1.35 against the US Dollar, as it continues to fall from its mid 1.40's price just a few months ago.
Caterpillar and Dow Chemical fell more than 5.1%, pacing losses among industrial companies most-tied to the economy. Financial shares in the S&P 500 slid 4.9% as a group, to a two year low, as Moody’s Investors Service cut its ratings on Bank of America, Citigroup and Wells Fargo. BOA was down over 7%. The Dow Jones Transportation Average slid 5.3% as railroad shares tumbled after two coal companies cut their forecasts. On a positive note, Hewlett Packard was up 6.7%, the only stock that was positive on the Dow for the day.
On the economic front, Bernanke talked of strains in the global financial markets, leading to the market falling it's largest amount in a month. This caused for concern that their will be an decrease in the demand for oil, thus the price of has been dropping.