Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Search of Air Algerie crash site continues

Read more

MEDIAWATCH

Sarkozy, Hollande and the scooter wars

Read more

MEDIAWATCH

Confusion online over Air Algérie flight

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

REPORTERS

Halal tourism on the rise

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

FRANCE IN FOCUS

WWI Centenary: the battle for Verdun

Read more

THE BUSINESS INTERVIEW

When big companies want to do good

Read more

  • Second black box found at Air Algérie crash site in Mali

    Read more

  • Limited 12-hour humanitarian truce takes effect in Gaza

    Read more

  • US evacuates embassy in Libya amid militia clashes

    Read more

  • Kerry in Paris for new round of Gaza ceasefire talks

    Read more

  • French PM calls for calm ahead of banned Gaza protest

    Read more

  • Nibali rides serenely toward a place in Tour history

    Read more

  • Video: 'Lack of security' at MH17 crash site, FRANCE 24 reports

    Read more

  • In pictures: Devastation, debris at Air Algérie crash site

    Read more

  • Washington Post reporter and his wife arrested in Iran

    Read more

  • French families grieve for Algerian plane crash victims

    Read more

  • Lithuania’s Navardauskas wins 19th stage of Tour de France

    Read more

  • LA Times wipes France off the map in air crash infographic

    Read more

  • Fans electrify the mood as Tour de France crosses the Pyrenees

    Read more

  • French lawyer files complaint against Israel at ICC

    Read more

  • Protest against Gaza offensive turns deadly in West Bank

    Read more

  • Halal tourism on the rise

    Read more

  • Ukraine names acting PM after Yatseniuk's shock resignation

    Read more

Wall Street tumbles on GM fears

Video by Sarah DRURY

Text by AFP

Latest update : 2008-11-12

Fears that US motor giant General Motors may be heading for collapse sent shares skidding deeper on Wall Street. The car manufacturer is the latest institution hit by the financial crisis to request an emergency government bail-out.

US stocks skidded deeper into the red but off their lows Tuesday on fears of a collapse of General Motors and a series of troubling corporate news amid the global credit crisis.
   
The Dow Jones Industrial Average tumbled 176.58 points (1.99 percent) to finish at 8,693.96 and the tech-heavy Nasdaq dropped 35.84 points (2.22 percent) to 1,580.90.
   
The broad Standard & Poor's 500 index retreated 20.26 points (2.20 percent) to 898.95.
   
"Discussions about the fate of General Motors and the US auto industry are driving the negative bias, yet a growing sense that the bailout request line is growing longer and more complicated to prioritize is taking a toll on investor confidence," said Patrick O'Hare, analyst at Briefing.com.
   
The market nervously was awaiting October retail sales figures and a key consumer confidence indicator due Friday, expected to show a sharp deterioration in the world's biggest economy.
   
With no macroeconomic news to digest and the bond market closed in observance of the Veterans Day holiday, investors fixated on the woes in the corporate sector.
   
GM was under the spotlight after its president and chief executive Rick Wagoner recently appealed for government aid to avert bankruptcy.
   
After plunging 22 percent Monday, shares dropped another 13.02 percent Tuesday to 2.92 dollars, their lowest level since 1943.
   
In the battered financial sector, credit card firm American Express tumbled 6.17 percent to 22.50. The Federal Reserve announced late Monday that AMEX had sought and was granted authority to convert into a full-status bank, making it eligible for aid from the Treasury's 700 billion dollar bank bailout package.
   
That announcement underscored the enormous 24 billion dollar third-quarter loss posted Monday by American International Group, the giant insurer nationalized in a record-breaking government rescue in September. AIG shares dipped 0.88 percent to 2.26 dollars.
   
"Regarding the bailouts, one cannot help asking a simple question: How far are regulators willing to extend the 'guarantee net?'" Citigroup Global Markets analysts wrote in a client note.
   
Citigroup slid 3.66 percent to 10.80 after announcing it was placing a moratorium on foreclosures for most home loan borrowers, and that it would work with some 500,000 stretched mortgage customers to help them keep their homes. It was the first time Citi shares had closed below 11 dollars since 1996.
   
Bank of America dropped 4.06 percent to 18.69 and Morgan Stanley lost 3.43 percent at 14.08.
   
Oil majors plunged as oil prices dropped below 60 dollars a barrel in New York. ExxonMobil, the biggest Dow component, lost 2.78 percent to 71.96 and Chevron gave back 3.15 percent at 72.00.
   
Among other stocks in focus, Alcoa fell 7.13 percent to 10.94 after the aluminum giant firm announced an additional production cut due to falling demand.
   
Coffee shop retailer Starbucks dropped 1.77 percent to 10.00 dollars after publishing a disappointing quarterly profit report.
   
Wall Street extended Monday's losses as renewed corporate worries, especially General Motors, overshadowed China's announcement of a massive economic stimulus package. The Dow fell 0.82 percent, the Nasdaq 1.86 percent and the S&P 500 1.27 percent.
 

Date created : 2008-11-12

COMMENT(S)