Monday, May 11, 2009

Wall Street Retreats On Profit Taking, Bank Of America Sinks

. Monday, May 11, 2009

By stockOzone team

US stocks retreated on Monday as investors preferred to book profit after the recent rally. Shares also came under pressure due to weakness in financial and energy stocks.The Dow Jones Industrial Average tumbled 155.88 points or 1.82% to finish at 8,418.77. The S&P 500 fell 19.99 points or 2.15% to end at 909.24. The Nasdaq Composite lost 7.76 points or 0.45% to 1,731.24.

Shares of financials finished with steep losses. Bank of America (NYSE: BAC) tumbled $1.23 or 8.68% to $12.94.American Express (NYSE: AXP) plunged $2.29 or 8.06% to $26.11. JP Morgan (NYSE: JPM) slumped $3.11 or 7.99% to $35.83. Citigroup (NYSE: C) plummeted 16 cents or 3.98% to $3.86. Shares of Wells Fargo & Co.(NYSE: WFC) declined $1.65 or 5.86% to $26.53.
Meanwhile, Capital One Financial Corp. and BB&T Corp. announced large common stock offerings, proceeds of which will be used, subject to approval, to help repay preferred stock investments the government made as part of the bank bailout plan. The three banks that were among the 19 largest US banks to undergo government "stress tests", were among the nine found not to need more capital. U.S. Bancorp (NYSE: USB) said it plans to raise $2.5 billion, Capital One Financial Corp (NYSE: COF) announced that it intends to raise $1.75 billion while BB&T Corp (NYSE: BBT) hopes to raise $1.5 billion.

Shares of BB&T Corp. decreased $1.99 or 7.56% to $24.34. US Bancorp retreated $2.04 or 9.93% to $18.50 while Capital One Financial declined $4.24 or 13.53% to $27.10.

Energy stocks settled lower. Exxon Mobil Corp. (NYSE: XOM) fell $1.11 or 1.57% to $69.27. Chevron Corp. (NYSE: CVX) slid $2.38 or 3.38% to $68.

Shares of General Motors (NYSE: GM) sank 17 cents or 10.56% to $1.44.

Alcoa (NYSE: AA) dropped 42 cents or 4.20% to $9.59.

European banking giant HSBC Holdings (NYSE: HCS) on Monday said that said first-quarter profits were "well ahead" of last year, thanks to record results in its investment bank, but would have been down without accounting gains on its debt. Excluding a $6.6 billion fair value gain on its own debt, first quarter profit was below a year ago, though still "significantly higher" than in the fourth quarter. About two-thirds of the debt gain reversed in April, the bank said. Shares of the bank fell 34 cents or 1.47% to $22.80.

Shares of Dish Network Corp. (NASDAQ: DISH), the second-largest US satellite TV provider, soared $2.61 or 17.05% to $17.92 after it reported that its first-quarter profit jumped 21% to $312.7 million, or 70 cents per share, for the period ended March 31, up from $258.6 million, or 57 cents per share, a year earlier. Revenue increased 2.1% to $2.91 billion from $2.84 billion.

Conseco Inc. (NYSE: CNO) said that it swung to a first quarter profit of $24.5 million, or 13 cents a share, from a loss of $7.2 million, or 4 cents a share a year ago. Revenue rose to $1.07 billion. Shares of the company soared 56 cents or 20.82% to $3.25.

European drugmaker AstraZeneca Plc's (NYSE: AZN) said that top line results from a phase III trial showed that Brilinta, its investigational oral antiplatelet treatment for acute coronary syndromes, or ACS, has achieved a statistically significant primary efficacy endpoint versus clopidogrel, in preventing cardiovascular events in patients suffering from ACS. Shares of the company jumped $2.01 or 5.56% to $38.15.

European stocks settled with losses. The UK FTSE fell 26.59 points or 0.60% to 4,435.50. The German DAX and French CAC retreated 0.96% and 1.93% respectively.

Asian stocks finished mostly lower. The Nikkei 225 climbed 19.15 points or 0.20% to 9,451.98. The Hang Seng index of Hong Kong plunged 301.92 points or 1.74% to 17,087.95.

NYMEX crude oil for May delivery fell 13 cents to settle at $58.50 a barrel.
Disclosure: Author does not own any of the stocks discussed here.

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