US Financial Sector under pressure $BAC, $C, $JPM

Last Updated on Tuesday, 06 September 2011 14:09

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US Equities dropped under the weight of a disappointing employment report that showed payroll generation stalled last month.
Subsequently, the bellwether indices erased their weekly advance as recession fears crippled risk sentiment. Volumes were light in holiday-affected trade as North American markets will be closed today for Labor Day.
The USD Index advanced for the fourth straight session, the longest rally since January, while Gold regained $1880/oz
Financials tumbled, leading declines in the S&P 500, as Commercial – Bank of America ($7.25, -8.3%), Citigroup ($7.25, -8.3%), JPMorgan Chase ($34.63, -4.6%).
Investment Banks – Credit Suisse ($27.38,-4.2%), Goldman Sachs ($107.06, -4.6%), Morgan Stanley ($15.96, -5.6%), – were sued for $196 billion to recoup losses on mortgage backed securities sold to Freddie Mac ($0.34, 10.5%) and Fannie Mae ($0.32, 10.2%). A renowned analyst wrote that if successful, the lawsuits would wipe out the US banking system.
Campbell Soup ($31.46, -1.3%) posted a profit that missed estimates due to restructuring charges and a decline in sales.
H&R Block ($13.41, -11.7%) slumped after also missing expectations.
Dow Jones –2.20% S&P500 –2.53% NASDAQ –2.89%

Published by Spectrum Live Pty Ltd | www.spectrumlive.com

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