| CATEGORY: MARKET REPORT - US CLOSE |
US close: Banks rise as Dubai fears ease |
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Mon 30 Nov 2009
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LONDON (SHARECAST) - US markets recovered despite disappointing post-Thanksgiving shopping figures as investors decided Dubai's debt situation was containable.
Bank shares led the recovery and from losses earlier in the day the Dow closed up 34 points at 10,344. Nasdaq gained 6 at 2,144, while the S&P 500 added 4 at 1,095.
A survey showed that more Americans went shopping over Thanksgiving weekend than last year, though they spent less money. The National Retail Federation estimates that 195m people visited shopping malls and online retailers between Thursday and Sunday.
Retailers Home Depot, Wal-Mart, Macy’s and JC Penney were all down on the day, although Ebay bucked the trend. Abercrombie & Fitch also rose on the back of an upgrade by FBR Capital Markets to outperform.
Stocks in the United Arab Emirates suffered record one-day losses on Monday. The savage slump reflected pent-up selling pressure following the Eid holiday, which has seen markets closed since state-owned Dubai World threatened to default on its debt.
Dubai’s leading index tumbled more than 7%, its worst day in over a year. An 8.3% plunge on the Abu Dhabi exchange was its biggest single-day decline ever.
CreditSights Inc estimates US bank exposure to Dubai is $9.9bn with European bank exposure nearer nine times that level. CreditSights reckons that Citigroup is owed about $5.9bn and JPMorgan Chase approximately $2.5bn.
That reassured banks and financials with JPMorgan Chase, Bank of America and American Express all among the biggest risers on the Dow. Many smaller banks in the S&P rose and helped the index rise when the Dow and Nasdaq are down.
In contrast, insurer American International Group was the biggest loser among larger companies after Sanford Bernstein cut its target price by 40% to $12 – still less than one-half the current price.
S&P 500 - Risers
Huntington Bancshares Inc. (HBAN) $3.83 +6.69%
Developers Diversified Reality (DDR) $10.12 +6.30%
Marshall & Ilsley (MI) $5.75 +5.89%
Cb Richard Ellis Group (CBG) $11.43 +5.64%
S&P 500 - Fallers
American International Group Inc. (AIG) $28.40 -14.71%
Tenet Hlthcre Corp. (THC) $4.55 -8.08%
Qwest Comm International Inc. (Q) $3.63 -4.47%
Mcafee Inc. (MFE) $38.15 -4.43%
Dow Jones I.A - Risers
JP Morgan Chase & Co. (JPM) $42.49 +2.81%
American Express Inc. (AXP) $41.83 +2.42%
Bank Of America Corp. (BAC) $15.84 +2.39%
Caterpillar Inc. (CAT) $58.39 +1.64%
Dow Jones I.A - Fallers
Alcoa Inc. (AA) $12.52 -1.11%
Home Depot Inc. (HD) $27.36 -0.91%
McDonald's Corp. (MCD) $63.25 -0.55%
Verizon Communications Inc. (VZ) $31.46 -0.54%
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