| CATEGORY: MARKET REPORT - US SECTOR: FINANCIALS |
US open: Banks lead retreat |
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Thu 17 Dec 2009
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LONDON (SHARECAST) - US stocks have opened lower, with Citigroup leading the retreat after investors expressed disappointment at the low price the bank was able to get for a secondary share offering.
Citi sold 5.4bn shares at $3.15 each late yesterday to raise $17bn towards paying back $20bn in government funds. The price was 10 cents below the level at which the government had pumped funds into Citi in a cash for shares injection.
Elsewhere in the sector, Bank of America has finally found a new boss. The group promoted Brian Moynihan, who heads the lender's retail bank, to be its next chief executive following the retirement of Kenneth Lewis.
The move was attacked by some shareholders who had hoped for a heavy hitter from outside the company’s ranks to be appointed.
Rival banks Goldman Sachs and Morgan Stanley were hit by earnings downgrades from Meredith Whitney Advisory Group.
Motorcycle maker Harley Davidson hit a bump in the road after Goldman Sachs added the stock to its ‘conviction sell’ list.
Defying the trend is speciality metals producer Allegheny Technologies, after it said it expected fourth quarter earnings per share would be at least $0.20, well above market consensus of 3 cents per share.
The three major indices are all trading lower, with the Dow Jones 30 down 96 at 10,344, the NASDAQ Composite 23 points easier at 2,183 and the S&P 500 9 points to the bad at 1,099.
S&P 500 - Risers
Allegheny Tech (ATI) $39.42 +3.09%
Unumprovident Corp. (UNM) $19.79 +2.75%
Lincoln Natl Corp. (LNC) $23.72 +2.73%
S&P 500 - Fallers
Citigroup Inc. (C) $3.18 -7.83%
Discover Financial Services (DFS) $15.36 -6.43%
Harley Davidson (HOG) $25.58 -5.22%
Dow Jones I.A - Risers
General Electric Co. (GE) $15.83 +0.89%
Exxon Mobil Corp. (XOM) $68.74 +0.45%
Dow Jones I.A - Fallers
Alcoa Inc. (AA) $14.60 -2.01%
JP Morgan Chase & Co. (JPM) $40.62 -1.79%
Nasdaq 100 - Risers
Express Scripts Inc. (ESRX) $85.52 +1.87%
Nvidia Corp. (NVDA) $17.04 +0.77%
CA Inc. (CA) $22.64 +0.67%
Nasdaq 100 - Fallers
Liberty Global Inc. Series A (LBTYA) $20.12 -3.87%
Comcast Corp. (CMCSA) $17.01 -2.86%
Millicom International Cellular S.A. (MICC) $71.69 -2.77%
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