March 3rd, 2009 by InvestorPoint
Markets slide, Dow below 6,800
U.S. stock indexes, reeling from months of negative economic news, plunged Monday in a global sell-off that pushed the bear market to new lows. Stocks fell for the fourth straight session that took the S&P 500 down to levels not seen since October 1996. The Dow Jones industrial average fell below 7000 for the first time in 11 years and has now lost more than half its value since its record high over 14000 in October 2007.
By close, the Dow Jones industrial average fell 299.64 points, 4.24 percent, to 6,763.29, the lowest closing since April 1997.
Decliners outweighed advancers on the New York Stock Exchange, 185 stocks advanced and 2,934 declined on a volume of 7.2 billion shares traded.
The benchmark 10-year U.S. Treasury bond rose 1 8/32 to yield 2.872 percent.
The euro fell to $1.2579, compared to Friday’s $1.2676. Against the Japanese yen, the dollar fell to 97.40 yen, compared to Friday’s 97.60 yen.
In Tokyo, the Nikkei average lost 288.27 points to 7,280.15, off 3.81 percent.
In London, the FTSE 100 index shed 204.26 points, 5.33 percent, to 3,625.83.
HSBC Holdings (HBC) shares plunged 19% after reporting a 70% drop in earnings for 2008. The company reported it will close most of its US consumer-lending business and will stop making new loans in the U.S. through its HFC and Beneficial divisions and close branches “as soon as commitments to customers are satisfied” resulting in 6,100 job losses. Additionally the company said it will raise almost $18 billion from shareholders.
HSBC provides financial services through four customer groups and global businesses: Personal Financial Services; Commercial Banking; Global Banking and Markets; and Private Banking.
Dish Networks Corp (DISH) common stock shares fell 12% as the company posted fourth-quarter net income of $217 million vs. $175 million a year earlier and as revenues of $2.92 billion, a modest 1% from the same quarter a year ago. Diluted earnings were 48 cents a share compared with 39 cents a year earlier. The satellite TV operator reported a loss of subscribers of 102,000 in the quarter.
Dish Networks is a provider of satellite digital television and subscription programming to customers across the United States
International Paper (IP) shares closed down over 8% as the company announced it will cut its quarterly dividend by 90 percent and plans to divest 143,000 acres of land in the southeastern U.S in an effort to preserve cash and reduce debt.
The paper company International Paper is a global paper and packaging company that is complemented by an extensive North American merchant distribution system, with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa.