| CATEGORY: MARKET REPORT - US CLOSE |
US close: Poor end to the day |
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Thu 03 Dec 2009
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LONDON (SHARECAST) - US shares failed to hold on to early gains and finished deep in the red ahead of the monthly non-farm payroll number tomorrow.
The Dow closed 86 points lower at 10,366 while the S&P 500 was down 9 at 1,099. Nasdaq shed 11 at at 2,173.
Markets fell even though economic figures were better than expected. Initial US jobless claims in the week to 28 November fell by 5,000 to 457,000, the lowest level since September 2008. Economists had pencilled in a figure of 480,000.
Bank of America rose after it received permission to repay its $45bn in TARP loans through a combination of internal capital and an equity financing. This made it the biggest riser on the Dow. Other financials, such as American Express and Travelers Company, were lower.
Comcast was a good riser on the S&P and Nasdaq after agreeing to acquire a 51% stake in a broadcasting joint venture that will include NBC Universal and its own cable networks. The deal values NBC Universal at $30bn. This would leave former NBC Universal owner General Electric with 49% of joint venture but the deal is still subject to regulatory approval. Shares in GE also rose.
GE acquired Vivendi’s 20% stake in NBC Universal for $5.8bn in order to be able to form the joint venture with Comcast, whose TV channels include E!, and the Golf Channel. The Comcast assets are valued at $7.25bn and it will make a payment of $6.5bn to GE. The NBC Universal assets come with $9.1bn of debt.
GE has the option to sell the rest of its stake over a seven year period. The NBC Universal business accounted for around 10% of revenues. The cash will be reinvested in high-tec businesses.
Shares in Ciena fell even though a judge decided that Nortel Networks should sell its optical networking business to Ciena for $769m because Nokia Siemens Networks higher bid was too late.
Discount retailer Family Dollar Stores forecast sales growth would be lower than expected.
S&P 500 - Risers
Adv Micro Devices (AMD) $8.03 +10.00%
Comcast Corp. (CMCSA) $15.88 +6.29%
Kla-Tencor Corp. (KLAC) $34.60 +5.62%
Tenet Hlthcre Corp. (THC) $4.87 +2.96%
Slm Corp. (SLM) $11.55 +2.94%
S&P 500 - Fallers
Principal Finl Group (PFG) $22.52 -13.32%
Abercrombie & Fitch (ANF) $36.21 -9.25%
Family Dollar Stores (FDO) $28.42 -7.52%
P N C Fin Svcs Gr (PNC) $52.89 -6.37%
Regions Financial Corp. (RF) $5.50 -5.98%
Dow Jones I.A - Risers
Bank Of America Corp. (BAC) $15.76 +0.70%
AT&T Inc. (T) $27.52 +0.62%
Intel Corp. (INTC) $19.84 +0.61%
Johnson & Johnson (JNJ) $64.12 +0.38%
Dow Jones I.A - Fallers
American Express Inc. (AXP) $38.87 -5.29%
Alcoa Inc. (AA) $13.27 -2.71%
Travelers Company Inc. (TRV) $51.44 -2.30%
3M Co. (MMM) $77.15 -1.61%
Du Pont E I De Nemours and Co. (DD) $34.83 -1.55%
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