Stock trades in the United States on Monday ended in collapse. Stock Indexes rollback on the basis of bidding on 23 February at the level of 1997.
The index of “blue chips” Dow Jones Industrial Average lost 250.73 points (-3.40%) and closed at the point in paragraph 7114.94, the lowest value since May 1997. Index broad market Standard & Poor’s 500 declined by 26.72 points (-3.47%) up to 743.33 points. High on the Nasdaq fell 53.51 points (-3.71%) to point to 1,387.72 points.
The collapse occurred on the background of quotations investor uncertainty in the correct policy to rescue the financial sector, the Government of the United States. During the trading session on the stock market both new and old world prevail doubts about the effectiveness of a possible nationalization of leading U.S. banks, which had a negative impact on stock quotes and financial summary indicators in general. Note that the majority of European indices closed on Monday in the red at 2003.
Meanwhile, the paper of the financial sector, contrary to expectations, not only increased in price, but also kept the indexes from the collapse of the first half of trading session. At the end of the trading shares Bank of America Corp. increased by 3,2%, while paper Citigroup Inc. - Almost 10%. Recall the administration the White House, according to unofficial data, is going to convert their share of preferred stock in Bank of Citigroup common stock and to get control over 40% stake in Citi.
The leaders began to fall quotes pharmaceutical companies and manufacturers of electronics. Paper Hewlett-Packard Co. and Intel Corp. fell in price for 6,3% and 5,5% respectively.
Add that oil to the outcome of bidding on Monday also significantly cheaper. In London, a barrel mark IPE Brent Crude gave 40.99 (-0.90) U.S., while NYMEX crude oil per barrel mark WTI - 38,44 (-1,59) U.S.
On the other hand payday loan companies performed really good last quates as access to short term loans was denied by a lot of banks due to liquidity problems. Payday loan companies do not look at borrowers credit rating and simply look at the ability to pay back the loan.