MUMBAI: US stocks ended sharply lower Friday, as credit worries resurfaced and jobless data dampened sentiment. According to government reports, Non-farm payrolls grew by a lower than expected 92,000 in July, the lowest level since February. The jobless rate was expected to remain at 4.5%. The unemployment rate rose to 4.6%, the highest since January, economists were expecting payroll growth of about 133,000, according to a survey conducted.
Credit fears were reignited as CEO of Bear Stearns said the bond market turmoil may be a worse predicament than the bursting of the Internet bubble in 2000. Shares of Bear Stearns plunged over 6%, dragging down other stocks in the financial and brokerage sectors aswell. Citigroup, the biggest US bank, lost 2.7%, Wells Fargo & Co, the second-largest US home lender, also declined.
Wachovia Corp, the fourth-largest US bank, dropped 4% after announcing one of its units was temporarily pulling the plug on home loans falling between prime and subprime quality, until market conditions improve. Worries about credit also hit credit card companies on the theory that consumers struggling with mortgage payments would also fall behind on credit card debt. American Express shares fell 5.6%, while MasterCard dropped 8%.
Read more in The Economic Times
Monday, August 06, 2007
Credit woes hammer US stocks again; ADRs not spared
Labels: Citigroup, Indian ADR's, US