US stocks fell for a second straight session as dollar rebounds & home buyer tax credit fears hurt financials, builders. Dow Jones ended down 104 points at 9868, slips 204 points from days high of 10072, Nasdaq ended down 12.6 points at 2142, slips 42 points from days high of 2184 and S&P 500 ended down 12.6 points at 1067, slips 24 points from days high of 1091. Commodities declined as Dollar Index rebound 0.8%. US declining sectors were Financials, down 2.5%, Materials, down 2.5% and Energy, down 1.5%.
Asian markets declined in opening trade. Hang Seng was (closed yesterday) down 2.3%, Shanghai Composite was down 1.6%, Nikkei 225 was down 1.5%, Kospi was down 1%, Straits Times was down 0.8% and Taiwan Weighted was down 0.5%. Europe dropped post ING news. CAC was down 1.7%, DAX was down 1.7% and FTSE was down 1%. CBOE VIX surged 9.2% at 24.31; which was its biggest one-day percentage gain in a month.
US Movers & Shakers:
ING tumbled 19% on news that the company will split in two, transforming itself into a smaller European lender, and launch a 7.5 billion euro rights issue. In other European financials, Allianz was down 4.4%, Aegon fell 6.5%, BNP Paribas was down 3.7% and Credit Suisse was down 2.6%. S&P Financial Index was down 2.5%, in which JPMorgan was down 3%, Bank of America was down 5%. SunTrust was down 5.4%, Fifth Third Bancorp was down 7.9%, US Bancorp was down 3.2% after Rochdale Security analyst downgraded the stocks.
US Home Construction Index was down 3.4% on buzz that first-time homebuyer tax credit will not be extended, which is set to expire on November 30; Hovnanian was down 5.2%, Toll Brothers was down 4.4%.
Other Movers & Shakers:
Indian ADRs: Satyam was down 9.1%, ICICI Bank was down 3.3%, Tata Motore was up 4.4%. Hardy Oil ends down 9.8% after falling 41% a day ago.
Commodities:
CRB Commodity Index was down 1.6%, which was the worst single-session percentage drop in one month. Crude falls 2.3% to $ 78.68/bbl on USD rebound. Gold falls 1.3% at $ 1042.8/ounce, biggest decline in a week. Silver declined 3.5% at $ 17.09. Copper was down 0.5% at $ 6613, slips from days high.
Currencies:
Dollar Index gained 0.8%, its best single-session percentage gain in one month. Dollar gained 10 bps Vs Euro at 1.5021. Yen appreciates 15 bps Vs USD at 91.91. Korean Won depreciates 1.15% Vs USD.
Data to watch:
S&P Case-Shiller Home Price Index
US Consumer Confidence
Results: Akzo Nobel, BP plc, Daimler AG, Visa and US Steel
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