March 4th, 2009 by InvestorPoint
U.S. markets comeback fizzles
U.S. markets headed lower Tuesday afternoon as a brief early rally faded amidst general economic distress.
Falling 299 points Monday, the Dow Jones industrial average closed the previous session at its lowest point in 12 years. Pessimism continued to drive stocks to losses in an erratic session as investors struggle with the reality that the US economy is far from recovery.
Federal Reserve Chairman Bernake tells Congress that the recovery depends on the government’s ability to stabilize our financial markets.
By close, the DJIA lost 37.27 points or 0.55 percent to 6,726.02. The Standard & Poor’s 500 fell 4.49 or 0.71 percent to 696.33 closing below 700 for the first time since late 1996. The Nasdaq 100 composite index dropped 1.84 or 0.14 percent to 1,321.01. The Russell 2000 index of smaller companies fell 6.79, or 1.9 percent, to 361.01.
Advancers were outweighed by decliners on the New York Stock Exchange, 1,003 stocks advanced and 2,109 declined on a volume of 7.2 billion shares traded.
The benchmark 10-year U.S. Treasury bond fell 8/32 to yield 2.894 percent.
The euro fell to $1.2562, compared to Monday’s $1.2576. Against the Japanese yen, the dollar rose to 98.24 yen, compared to Monday’s 97.43 yen.
In Tokyo, the Nikkei average lost 50.43 points to 7,229.72, down 0.69 percent.
In London, the FTSE 100 index dropped 3.14 percent, 113.74 points, to 3,512.09.
AutoZone Inc (AZO) shares hit a 52 week high and closed up 7.8% after the company posted a 9% growth in profits on higher sales as more people repair their cars instead of purchasing new ones. For the quarter the company reported a profit of $115.9 million or $2.03 a share up from $106.7 million or $1.67 per share a year earlier. Same store sales were up over 6%.
Autozone is a retailer and distributor of automotive parts and accessories.
Chico’s FAS (CHS) shares rose 3.2% despite the fact the company reported losses of $40.5 million or 23 cents per share up from a loss of $20.5 million or 12 cents per share. Revenues dropped to $373.4 million from $409.3 million.
Chico’s is a retailer of casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items under the Chico’s, White House | Black Market and Soma by Chico’s brand names.
Par Pharmaceutical (PRX) shares plunged over 19% after the company reported a quarterly loss of $30.5 million or 91 cents per share versus a profit of $5.5 million of 16 cents per share. Revenues rose 4 percent to $161.3 from $155.1 million.
Par Pharmaceutical through its subsidiary is in the business of developing, manufacturing and distributing generic and branded drugs in the United States.
MBIA (MBI) shares closed down almost even after dropping almost 9% in intraday trading after the company reported a loss of $1.2 billion or $5.30 per share an improvement over the $2.3 billion or $18.5 a share for the same quarter a year earlier. The company reported a $1.7 billion loss on insured derivatives.
MBIA is engaged in providing financial guarantee insurance, as well as related reinsurance, advisory and portfolio services; and investment management services, including advisory services, asset/liability products and conduits on a global basis