Wednesday, April 22, 2009

US Stocks Drop On Bank Worries, Bank of America Sinks

. Wednesday, April 22, 2009

By stockOzone team

Wall Street finished lower on Wednesday as Morgan Stanley’s weaker than expected quarterly results rekindled fears about the health of nation’s banking system. The Dow Jones Industrial Average fell 82.99 points or 1.04% to finish at 7,886.57. The S&P 500 declined 6.53 points or 0.77% to end at 843.55. The Nasdaq Composite rose 2.27 points or 0.14% to 1,646.12.
Among financials, Bank of America (NYSE: BAC) plunged 50 cents or 5.71% to $8.26. JP Morgan (NYSE: JPM) fell 63 cents or 1.94% to close at $31.90. Wells Fargo (NYSE: WFC) slumped 63 cents or 3.35% to $18.18.

Shares of Morgan Stanley (NYSE: MS) tumbled $2.21 or 8.97% to $22.44 after it said that it swung to a first quarter net loss of $190 million, or 57 cents a share, compared to a profit of $1.41 billion, or $1.26 a share.

Capital One Financial Corp. (NYSE: COF) slid 67 cents or 4.45% to $14.38. Late on Tuesday, the credit card issuer reported a first quarter loss of $176.1 million, or 45 cents per share compared to earnings of $548.5 million, or $1.47 per share, a year ago. Quarterly revenue dropped 26% to $2.88 billion.

Energy stocks retreated. Exxon Mobil (NYSE: XOM) slumped $1.48 or 2.23% to $64.75. Chevron Corp. (NYSE: CVX) dropped $1.17 or 1.80% to $63.71.

McDonald's Corp. (NYE: MCD) slipped $1.38 or 2.48% to $54.25 after it said that its first quarter profit increased 4% to $979.5 million, or 87 cents a share, from $946.1 million, or 81 cents a share, in the comparable quarter last year.

Among gainers, shares of equipment maker Caterpillar (NYSE: CAT) jumped $1.06 or 3.38% to end at $32.45.

Shares of plane maker Boeing Co. (NYSE: BA) rose 65 cents or 1.77% to $37.30 after it announced that its first-quarter profit declined 50% to $610 million, or 86 cents per share, compared with $1.21 billion, or $1.62 per share, during the same period last year. Revenue rose 3% to $16.50 billion.

Early on Wednesday, AT&T (NYSE: T) announced that its first quarter net income fell 9.7% to $3.126 billion, or 53 cents a share, from $3.461 billion, or 57 cents a share, in year earlier quarter. Shares of the telecom giant closed at $25.74, up 46 cents or 1.82%.

Shares of SanDisk (NASDAQ: SNDK) jumped $1.83 or 13.35% to $15.54 after it reported that it swung to a first quarter net loss of $208 million, or 92 cents a share, compared to earnings of $10.96 million, or 5 cents a share, for the same quarter the previous year.

According to Wall Street Journal, embattled automaker General Motors Corp. (NYSE: GM) plans to skip a $1 billion debt payment due June 1.

Late on Tuesday, Yahoo Inc (NASDAQ: YHOO) announced that it would reduce 5% of its global workforce. The Sunnyvale, California-based web company reported a net profit in the first quarter of $118 million, or 8 cents a share - down from $537 million, or 37 cents a share, a year ago.

European stocks settled higher. The U.K. FTSE rose 43.20 points or 1.08% to 4,030.66. The German DAX and French CAC gained 2.06% and 1.72% respectively.

Asian stocks finished mixed. The Nikkei 225 increased 15.97 points or 0.18% to 8,727.30. The Hang Seng index of Hong Kong plunged 407.44 points or 2.67% to 14,878.45.

Disclosure: Author does not own any of the stocks discussed here.

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