NST Online Business Times : latest

Posted: 20 Sep 2013 04:26 PM PDT

NEW YORK: US markets slid on Friday, giving up much of the gains made on the Federal Reserve's no-taper decision, as the country girded for a disruptive Washington budget and debt showdown.

The Dow Jones Industrial Average shed 185.46 points (1.19 per cent) at 15,451.09. The broad-based S&P 500 dropped 12.43 (0.72 per cent) to 1,709.91, while the tech-rich Nasdaq Composite fell 14.65 (0.39 per cent) at 3,774.73.

The Dow gave up more than it had added in Wednesday's record-breaking surge after the Federal Reserve announced it would not begin closing its easy money stimulus spigot this month, greeted with surprise and enthusiasm by investors.

The S&P 500, which along with the Dow set new record closing highs Wednesday, held on to only a third of its gains.

Buying was dulled by comments from Fed official James Bullard that Wednesday's vote was close over reducing the US$85 billion a month bond-buying program, and his suggestion that it could still happen next month if economic data improves sufficiently.

"It's possible. I'm not saying its going to happen, but it's possible," Bullard said.

But a building showdown in Washington over the budget and debt ceiling, which threatens to shut down the government at the end of the month, also cast a shadow on trade.

House of Representatives Republicans passed a bill to fund the government but attached a requirement to kill funding for the White House's health-care reforms; the White House has already rejected such a measure.

BlackBerry stunned trade with a late announcement that it expected up to a US$1 billion loss in its second quarter, and that it would lay off 40 per cent of its workforce, or 4,500 jobs.

The cellphone maker's shares plunged 17.1 per cent to US$8.73.

Among leading companies, General Electric lost 1.8 per cent and IBM 1.7 per cent.

Volatile Facebook shares picked up 3.3 per cent, while Microsoft fell 2.5 per cent.

Electric sports car maker Tesla surged 3.1 per cent to a new closing high, US$183.39.

Dow member Caterpillar fell 1.4 per cent after reporting that its machinery sales fell in the last three months.

Prudential Financial dropped 0.6 per cent after US regulators classified the company as large enough to present systemic risk, a designation that means tighter regulatory oversight.

Darden Restaurants, which operates Red Lobster, Olive Garden and other chains, tumbled 7.1 per cent, after earnings of 53 cents per share missed expectations by 17 cents. -- AFP

Kredit: www.nst.com.my

Jumaat, 20 September 2013

NST Online Business Times : latest

NST Online Business Times : latest

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