Dow Chemical’s deal is off, while oil stocks head higher adhering Middle East tensions
By Karyn McCormack
Stocks were mercantile lower Monday surrounded by tensions in the Middle East and a cancelled deal for Dow Chemical (DOW). S&P MarketScope notes there are fears that 2009 will be rocky at the outset and there’sitting uncertainty about what the Obama administration will do about the recession.
On Monday around 3:15 pm ET, the 30-stock Dow Jones industrial average relentless 59.74 points, or 0.70%, to 8,455.81. The broader S&P 500 index moved from the top to the bottom of 6.66 points, or 0.76%, to 866.14. The tech-heavy Nasdaq composite index lost 25.42 points, or 1.66%, to 1,504.82.
Oil stocks moved up and oil futures were rising amid reports fighting between Hamas and Israel might disrupt Middle East oil supplies. The dollar index was sharply lower. Treasuries, which have surged in recent days, were higher. Gold futures jumped in a shower to safety.
Dow Chemical (DOW) says the Kuwait Supreme Petroleum Council (SPC) reversed its prior approval of the agreement between Dow and Petrochemicals Industries Co. to enter into K-Dow Petrochemicals, a planned 50-50 joint hazard one’s self company. According to newswire reports, the proposed join stake would have provided Dow with approximately $9 billion that Dow was to put toward its planned acquisition of Rohm & Haas (ROH).
Ford Motor (F) shares were under pressure onward newswire reports that Tracinda Corp. has confirmed that it has sold all of its stake in the guests.
Office REITs were fall as SL Green Realty (SLG) declares a quarterly profits divided of $0.375 per frequent share, what one. is less than moiety of what it paid out the previous cut to pieces.
Among other stocks in the news, Satyam Computer Services (SAY) reschedules its board meeting to Jan. 10 to endure the board to consider options other than a possible buy-back of its stock. Additional options may include: measures to strengthen SAY’s governance structure, including increasing size and altering composition of the food; conducting review of the company’s strategic options to increase shareholder value (has engaged DSP Merrill Lynch to assist in this review); addressing issues arising from potential dilution of promoter’session stake in the company.
In the bond market, 10-year notes were higher at 115-02/32 for yield of 2.062%, and 30-year bonds were up at 139-13/32 for yield of 2.581%.
Over in the pluck markets, February West Texas Intermediate harsh oil futures were up to $37.87 a barrel upon concerns Israeli air strikes against Hamas in the Gaza strip may disrupt supplies from the Middle East, the cosmos’s largest producing region. Prices were also boosted by the agency of reports that China, the world second-biggest energy consumer, direction supplement its emergency stock piles and that the United Arab Emirates announced compliance with agreed OPEC production cuts.
There were no economic reports today. This week’s calendar includes Chicago PMI and S&P Case-Shiller reports tomorrow; initial jobless claims on Wednesday; and ISM Friday.
Original text: http://www.businessweek.com/investor/content/dec2008/pi20081229_436022.htm?campaign_id=rss_null
