WORLD> America
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WORLD> America
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Dow ends up nearly 400 after bailout of Citigroup
(Agencies)
Updated: 2008-11-25 09:21 Bond prices were mixed Monday as investors examined the government's bailout plan for Citigroup. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.33 percent from 3.20 percent late Friday.
The Treasury bill market showed continuing high demand, a sign of investors' caution. The yield on the three-month T-bill, considered one of the safest investments, fell to 0.01 percent from 0.04 percent late Friday. The dollar was mostly lower against other major currencies, while gold prices rose. Light, sweet crude rose $4.61 to $54.54 on the New York Mercantile Exchange. Stocks briefly came off their highs of the session in the middle of the session, with the Dow paring its gain from 300 points to 200 points, as President-elect Obama formally named his economic team. But Obama didn't offer specifics of an economic-stimulus package nor state that he would push back a plan to raise taxes on the richest Americans. He reiterated his goal of creating 2.5 million jobs during the next two years. Alan Lancz, director at investment research group LanczGlobal, said that while the market might have wanted a firmer commitment against raising taxes, it was too soon for Obama to outline specifics. Lancz expects the new administration wouldn't rush to implement the hikes if the economy appeared too weak. "There's so many balls in the air right now he'd be foolish to make specific comments," Lancz said, noting that the economic picture could change greatly by Inauguration Day, which is Jan. 20. Wall Street shrugged off a larger-than-expected drop in sales of existing homes last month as investors instead focus on the government's plans for the financial sector. The housing numbers fell short of expectations, but investors expected sales would fall sharply after last month's upheaval in the financial markets. The National Association of Realtors said sales of existing homes fell 3.1 percent to a seasonally adjusted annual rate of 4.98 million in October. That's down from 5.14 million in September. The financial sector led Monday's advance, fueled by a sense that the government might be developing a more nuanced yet ready-to-apply remedy for financial firms. Citi surged $2.18, or 58 percent, to $5.95. Bank of America rose $3.12, or 27 percent, to $14.59. JPMorgan Chase & Co. rose $4.86, or 21 percent, to $27.58. Advancing issues outnumbered decliners by about 7 to 1 on the New York Stock Exchange, where volume came to 7.65 billion shares, compared with 9.27 billion on Friday. Overseas, Britain's FTSE 100 jumped 9.84 percent, Germany's DAX index surged 10.34 percent, and France's CAC-40 rose 10.09 percent. Hong Kong's Hang Seng index fell 1.59 percent; markets in Japan were closed for a holiday. |
