Europe’s Debt Problems Leads Awful Day On Wall Street: Acadiana Business Index
Headlines from Europe continue to move the market backwards and forwards as the Dow Jones Industrial Average plunged 389 points. Mark Lasseigne has your market report on today's Acadiana Business Index.
- The yield on the Italian 10-year bond rose above the 7%, adding to concerns in the country's ability to repay its debt. And in Greece, talks fell apart between the country's two main political parties, raising doubt about whether the country will be able to receive the next installment of emergency loans needed to avoid a default.
- Leading the declines were financial stocks. J.P. Morgan Chase fell 7.1% and Bank of America declined 5.6%. Morgan Stanley, which fell sharply in September due to fears about its exposure to French banks, dropped 9% today. The investment bank said it has $1.79 billion in net "country risk exposure" to Italy.
In corporate news:
- Shares of General Motors lost 10.9% after providing a downbeat outlook and citing deteriorating economic conditions.
- Adobe Systems sank 7.7%. The company said it would cut 750 jobs and provided a lower revenue outlook.
- And Ralph Lauren fell 5.7% after missing earnings forecasts.
- Crude oil closed at $95.74 a barrel.
- And Gold settled at $1,792 an ounce.