US stocks decline on economic woes
US stocks slid further on Friday as investors around the world grew more concerned about the deteriorating economy.business Updated: Feb 21, 2009 11:33 IST
US stocks slid further on Friday as investors around the world grew more concerned about the deteriorating economy.
The market tumbled as the uncertainty about how government would remove banks' bad assets is still weighing. The financial stability plan announced by US Treasury Secretary Timothy Geithner last week was not specific enough to boost investors' confidence in the financial system.
Disappointing corporate earnings results added to the pessimism of the market. Both Lowe's and JC Penney missed fourth-quarter earnings expectations as the slumping economy hurt US businesses. They also warned that 2009 earnings forecast is below analysts' expectations.
In economic news, the US Labour Department reported Friday that consumer prices rose by 0.3 percent last month, the biggest monthly increase since a 0.7 per cent rise in July.
Financials led the way down again on Friday. Shares of Bank of America Corp and Citigroup Inc plunged for the sixth straight day.
The Dow Jones industrial average fell 100.28 points, or 1.34 per cent, to 7,365.67. The Standard & Poor's 500 Index slid 8.89 points, or 1.14 per cent, to 770.05 while the Nasdaq Composite Index dipped 1.59 points, or 0.11 per cent, at 1,441.23.