Stocks Struggle As Losses Mount/Dollar Pares Losses
Stocks Struggle As Losses Mount/Dollar Pares Losses
Asian and European shares were up nearly 4% in overnight trading and S&P futures were almost 2.5% ahead, but U.S. stocks have not been able to maintain the momentum of their positive start and recently turned negative on the day.
AIG reported a third-quarter net loss of $24.47 billion, or $9.05 a share, compared with a year-earlier profit of $3.09 billion, or $1.19 a share. The loss included write-downs of $7.05 billion on credit default swaps, adding to the $25 billion in market losses on these debt guarantees in the previous three quarters.
Shares of GM fell 23% to $3.34 after earlier hitting a 62-year low of $3.02, as analysts at both Barclays and Deutsche Bank cut their target prices and investment ratings on the stock. Barclays now targets GM shares at $1, while Deutsche Bank slashed its target price to zero.
Mail and logistics company Deutsche Post said it will cut 9,500 jobs and close all of its DHL express service centers in the U.S. amid heavy losses.
Electronics retailer Circuit City filed for Chapter 11 bankruptcy Monday in an effort to stay ahead of lenders owed $898 million.
In recent trade, the DOW was moving 0.11% lower. The S&P was down 0.55% on the day and 2.8% off the high while the NASDAQ moved 0.84% lower. The dollar pared its losses against the higher-yielding currencies as stocks faded, but was still losing 0.51% to the euro and 0.14% to the pound. The greenback was moving lower against the yen by 0.15% after being up most of the session.
Crude oil was fading well off the highs. The December contract was recently trading up 39 cents (0.61%) to $61.35 per barrel after being up as much as 7% in overnight trading on news of China’s stimulus plan. Gold for December delivery was recently trading up $18.90 (2.71%) to $753.10 per ounce.
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