Stocks Move Lower
Dow Chemical’s deal is opposite to, under that circumstances oil stocks head higher in continuance Middle East tensions
By Karyn McCormack
Stocks were trading lower Monday amid tensions in the Middle East and a cancelled deal in the place of Dow Chemical (DOW). S&P MarketScope notes in that place are fears that 2009 will be stony at the outset and there’s uncertainty about what the Obama control will vouchsafe about the recession.
On Monday encircling 3:15 pm ET, the 30-stock Dow Jones industrial average fell 59.74 points, or 0.70%, to 8,455.81. The broader S&P 500 index moved down 6.66 points, or 0.76%, to 866.14. The tech-heavy Nasdaq composite index lost 25.42 points, or 1.66%, to 1,504.82.
Oil stocks moved up and oil futures were resurrection amid reports fighting between Hamas and Israel might disrupt Middle East oil supplies. The dollar index was sharply lower. Treasuries, which have surged in recent days, were higher. Gold futures jumped in a flight to safety.
Dow Chemical (DOW) says the Kuwait Supreme Petroleum Council (SPC) reversed its prior approval of the agreement between Dow and Petrochemicals Industries Co. to enter into K-Dow Petrochemicals, a planned 50-50 internode venture corporation. According to newswire reports, the proposed joint venture would have provided Dow with nearly $9 billion that Dow was to put near at hand its planned acquisition of Rohm & Haas (ROH).
Ford Motor (F) shares were under pressure on newswire reports that Tracinda Corp. has confirmed that it has sold all of its stake in the company.
Office REITs were humiliate as SL Green Realty (SLG) declares a quarterly dividend of $0.375 per common share, which is less than half of what it paid out the previous quarter.
Among other public securities in the news, Satyam Computer Services (SAY) reschedules its board meeting to Jan. 10 to allow the conclave to consider options other than a possible buy-back of its stock. Additional options may include: measures to strengthen SAY’s governance arrangement of parts, including increasing size and altering conjunction of the board; conducting review of the company’sitting strategic options to enhance shareholder value (has engaged DSP Merrill Lynch to assist in this review); addressing issues arising from possible dilution of promoter’session stake in the company.
In the bond market, 10-year notes were higher at 115-02/32 for yield of 2.062%, and 30-year bonds were up at 139-13/32 for yield of 2.581%.
Over in the energy markets, February West Texas Intermediate crude oil futures were up to $37.87 a barrel on concerns Israeli air strikes against Hamas in the Gaza strip may disrupt stores from the Middle East, the world’s largest producing region. Prices were also boosted by reports that China, the world second-biggest capacity of work consumer, will supplement its exigency stem piles and that the United Arab Emirates announced compliance through agreed OPEC lengthening cuts.
There were no economic reports today. This week’s calendar includes Chicago PMI and S&P Case-Shiller reports tomorrow; initial jobless claims put on Wednesday; and ISM Friday.
