CLOSING MARKET REPORT
Lehman buyout talk, oil, GM lift Wall Street

NEW YORK - US stocks rose on Thursday as a report that major US investment bank Lehman Brothers is shopping itself to possible suitors, including Bank of America (BOA), drove a last-minute rebound in financial shares.

A nearly US$2 retreat in the price of oil also boosted the market, easing concern about consumer and business spending and sending airline and retail shares higher.

General Motors was another standout, with shares rising more than 11 per cent on hopes that Washington may provide a financial lifeline for US automakers. Ford jumped nearly 5 per cent a share to US$4.68.

Financial shares rallied after The Wall Street Journal reported that Lehman was courting suitors, including BOA.

That sector had been under steady pressure on fears that Lehman would not be able to raise much-needed capital to cover mortgage-related losses. The S&P financial index was up 1.5 per cent after having fallen around 4 per cent.

Lehman shares ended down nearly 42 per cent at US$4.22, just above a 3-1/2-year low of US$3.80 hit earlier. Investor fears that Lehman would fail to raise enough capital to cover its mortgage-related losses have kept it under steady pressure all week. BOA shares closed up 2 per cent at US$33.06.

The Dow Jones industrial average ended up 164.79 points, or 1.46 per cent, at 11,433.71. The Standard & Poor's 500 Index closed up 17.01 points, or 1.38 per cent, at 1,249.05. The Nasdaq Composite Index finished up 29.52 points, or 1.32 per cent, at 2,258.22.

Sourcce: Singapore Business Times - 12 Sep 2008

CLOSING MARKET REPORT
Wall Street gains as energy, tech offset bank fears

NEW YORK - US stocks rose on Wednesday as Opec's move to shore up oil prices boosted energy shares and Texas Instruments' outlook soothed fear about technology spending even as worries persisted about the health of the banking sector.

The broader market's gains came a day after the S&P 500 posted its biggest decline in a year and a half.

Energy shares rose as Opec said it would cut production, which was seen as an attempt to halt a recent sharp slide in the price of oil. Exxon Mobil rose nearly 3 per cent and was the top boost for the S&P.

Technology shares also rose on relief that chip maker Texas Instruments did not cut its earnings outlook after a spate of recent warnings on consumers' mobile phone spending.

Financial shares, however, were broadly lower after Lehman Brothers posted an unexpectedly large quarterly loss on huge mortgage-related write-downs and failed to announce any firm deals to raise desperately needed capital. Shares of Lehman, the No 4 US investment bank, sank 6.9 per cent, extending Tuesday's 45 per cent slide.

The Dow Jones industrial average was up 38.19 points, or 0.34 per cent, at 11,268.92. The Standard & Poor's 500 Index was up 7.53 points, or 0.61 per cent, at 1,232.04. The Nasdaq Composite Index was up 18.89 points, or 0.85 per cent, at 2,228.70.

Source: Singapore Business Times - 11 Sep 2008

Fears on Lehman, financials send market into skid

* Fears of Lehman's ability to raise capital hits stocks
* Energy shares flounder as oil prices hit 5-month low
* Surprisingly weak home sales data adds to economic fears
* Dow off 2.4%; S&P 500 off 3.4%; Nasdaq off 2.6%

NEW YORK - US stocks plunged on Tuesday, driving the benchmark S&P 500 to its worst day in one and a half years, as concern about Lehman Brothers' ability to raise much-needed capital reignited fears about the broader financial sector.

Energy shares tumbled as oil prices fell more than US$3 a barrel to a five-month low, hit by news that Hurricane Ike would veer away from Gulf of Mexico production facilities.

Shares of Lehman, the No 4 US investment bank, skidded 45 per cent and renewed worries about other financial firms' ability to contend with mortgage losses. The S&P financial index fell 6.6 per cent.

Lehman's percentage slide was its biggest since it went public in 1994, and fears about its survival doused Monday's optimism on the government's bailout of home finance firms Fannie Mae and Freddie Mac in an effort to boost the slumping housing market.

The S&P 500 shed more than 3 per cent, while the Dow and Nasdaq fell more than 2 per cent each.

The Dow Jones industrial average was down 280.01 points, or 2.43 per cent, at 11,230.73. The Standard & Poor's 500 Index was down 43.28 points, or 3.41 per cent, at 1,224.51. The Nasdaq Composite Index was down 59.95 points, or 2.64 per cent, at 2,209.81.

Standard & Poor's said the market value of the S&P 500 is down US$3.1 trillion from its record closing high hit on Oct 9, 2007.

Lehman's slide began on news that talks about a possible investment into Lehman from Korea Development Bank had broken down, and it continued after Standard & Poor's rating agency said it could cut the investment bank's credit rating.

Lehman shares ended down 45 per cent at US$7.79. The slide was marked by a surge in volume, with more than 300 million shares changing hands in composite trading, the biggest volume surge since at least September 2002.

Source: Singapore Business Times - 10 Sep 2008

Wall Street soars on Fannie, Freddie bailout

NEW YORK - Stocks rose on Monday as investors bet Washington's bailout of mortgage finance giants Fannie Mae and Freddie Mac would stabilie the US housing sector and calm jittery world financial markets.

Investors poured into stocks worldwide, especially bank shares, after the US Treasury on Sunday seized control of the two companies in what could become one of Washington's biggest bailouts ever.

The Dow industrials jumped nearly 300 points. Bank of America and Citigroup both rose more than 6 percent and were among the biggest drivers of gains on the Dow and the S&P. Home builders also advanced, with the Dow Jones home construction index rising more than 10 percent.

Any recovery in home prices will be largely dependent on the health of Fannie and Freddie, which own or guarantee about half of all outstanding mortgages and are the biggest providers of home financing in the country. The health of the housing market is considered key to restoring luster to the US economy.

Investors hope the bailout, which carries an explicit government backing for debt issued by the two companies, will shore up confidence in the mortgage market and stem a wave of bank write-downs tied to mortgage investments gone bad.

The Dow Jones industrial average closed up 290.18 points, or 2.59 per cent, at 11,510.49. The Standard & Poor's 500 Index finished up 25.48 points, or 2.05 per cent, at 1,267.79. The Nasdaq Composite Index was up 13.88 points, or 0.62 per cent, at 2,269.76.

Source: Singapore Business Times - 09 Sep 2008

Dow, S&P end higher on financials, down for week

NEW YORK - The broader US stock market edged higher on Friday, but still posted its worst week since May, as a rally in financial stocks helped reverse losses sparked by a government report showing the US jobless rate rose to a five-year high.

Financial shares rebounded in afternoon trading, amid hopes the US Treasury would take steps over the weekend to rescue mortgage finance companies Fannie Mae and Freddie Mac. After the closing bell, The Wall Street Journal reported the Treasury is close to finalizing a plan to backstop Fannie and Freddie.

Also helping financials, Lehman Brothers rose 6.8 per cent to US$16.20 after sources familiar with the situation said Blackstone Group LP and Kohlberg Kravis Roberts & Co are each looking to buy parts of Lehman's real estate and asset management units.

But the day had started on a sour note, with the Dow falling more than 100 points after news that the unemployment rate jumped to 6.1 per cent added to worries about consumer spending and compounded fears of a worsening global economic slowdown. Those fears had battered stocks all week, leaving the S&P 500 with its worst five-day performance since May.

The Nasdaq lagged the other indexes on Friday and had its worst week since January, led lower by big-cap technology shares. Analysts say technology is among sectors most vulnerable to a global slowdown due to its exposure to overseas markets.

The Dow Jones industrial average rose 32.73 points, or 0.29 per cent, to 11,220.96, but ended down 2.8 per cent on the week.

The Standard & Poor's 500 Index climbed 5.48 points, or 0.44 per cent, to 1,242.31, ending down 3.2 on the week.

The Nasdaq Composite Index, meanwhile, slipped 3.16 points, or 0.14 per cent, to 2,255.88, ending the week 4.7 per cent lower.

Source: Singapore Business Times - 06 Sep 2008

Global growth, US job fears hammer Wall Street

NEW YORK - Wall Street had its steepest decline in more than two months on Thursday, as more signs of weakness in the labour market and increasingly sluggish growth overseas fuelled fears about the ability of the US economy to stage a recovery.

The sour mood was set early in the session, after weekly government data showed an unexpected jump in the number of filings for jobless benefits, while a report by ADP Employer Services showed private employers cut 33,000 jobs in August.

The data fueled investor nervousness ahead of the government's key August non-farm payrolls report, and losses cascaded in afternoon trading. The Dow fell more than 340 points and only one of its 30 components escaped the sell-off.

Construction and mining equipment maker Terex Corp compounded the gloom when it cut its 2008 sales and profit forecast, citing weak demand in Western Europe and North America. Top drags included economic bellwethers Caterpillar and General Electric.

Financial stocks were also hammered, after Bill Gross, the manager of the world's biggest bond fund, Pimco, said that to halt what he called 'a financial tsunami' the US government should give the Treasury the right to buy debt and other assets. Mr Gross said he was staying on the sidelines of the markets.

The Dow Jones industrial average fell 344.65 points, or 2.99 per cent, to 11,188.23, while the Standard & Poor's 500 Index dropped 38.15 points, or 2.99 per cent, to 1,236.83. The Nasdaq Composite Index tumbled 74.69 points, or 3.20 per cent, to 2,259.04.

Source: Singapore Business Times - 05 Sep 2008

Global growth worries rattle Wall St, Dow rises

NEW YORK - The S&P 500 and the Nasdaq fell on Wednesday as signs of increasingly sluggish growth in the United States and the rest of the world rattled investors already unsettled about the outlook for consumer spending and corporate profits.

The Dow eked out a modest gain, however, helped by Home Depot. The home improvement retailers' shares rose 4.5 per cent after its chief executive said the battered US housing market's decline may be nearing an end.

And General Motors Corp, another Dow component, said it thinks it has seen the bottom of the downturn in the auto industry, as well as indications that the housing market is near bottom.

Shares of wireless companies fell, weighing on the Nasdaq, after comments from mobile chipmaker Qualcomm's chief executive and JPMorgan analysts fueled concerns that the demand for cell phones is slowing.

A continued decline in the price of oil failed to spark optimism, with investors instead calling it yet another symptom of slowing global demand.

The Federal Reserve said in its Beige Book report that economic activity has been slow across most of the United States in recent weeks, though there has been some relief from high commodity and energy prices.

The Dow Jones industrial average rose 15.96 points, or 0.14 per cent, to 11,532.88, while the Standard & Poor's 500 Index dropped 2.59 points, or 0.20 per cent, to 1,274.99.

The Nasdaq Composite Index was down 15.51 points, or 0.66 per cent, at 2,333.73.

European data showed that falling investment and private consumption led to the first-ever quarterly contraction in the euro zone economy, fueling fears of a recession in the region.

Source: Singapore Business Times - 04 Sep 2008

Wall St ends lower as tech and energy shares drag

* Oil sinks to five-month low as Gustav spares production
* Energy, materials, tech shares slide
* News of hedge fund closure seen contributing to fall
* Dow down 0.2%, Nasdaq down 0.8%, S&P down 0.4%

NEW YORK - US stocks fell on Tuesday, as a steep decline in the price of oil and other commodities hammered energy and materials companies while tech shares fell amid jitters a global economic slowdown would crimp technology spending.

The market reversed sharp gains notched at the beginning of the day, as commodity-related shares sold off. Analysts said the drop in those shares was likely further fuelled by the closure of a hedge fund announced after the bell.

The market had initially soared more than 1 percent as oil prices fell to a five-month low on relief that damage to energy infrastructure from Hurricane Gustav appeared to be limited.

The lower oil prices also had buoyed hopes of a recovery in consumer and business spending.

But as fears faded that Gustav would cause a prolonged disruption to energy supplies, the focus shifted to one of the reasons for oil's decline since its record peak in July: fears of slowing world energy demand.

After the closing bell another potential reason for the market's reversal emerged, when Ospraie Management told investors it would close down a fund that lost 27 per cent in August amid a sell-off in energy, mining and resource equity holdings.

Lehman Brothers Holdings Inc took a 20 per cent stake in Ospraie in 2005. Lehman's shares were down more than 4 per cent in after-hours trading.

The Dow Jones industrial average dropped 26.63 points, or 0.23 per cent, to 11,516.92. The Standard & Poor's 500 Index dropped 5.26 points, or 0.41 per cent, to 1,277.57. The Nasdaq Composite Index dropped 18.28 points, or 0.77 per cent, to 2,349.24.

In addition, worries that tech companies will suffer as the global economy slows, which sent markets tumbling on Friday after computer maker Dell Inc warned that companies worldwide are cutting back on technology spending.

Even during the market's sharp gains earlier in the session, technology shares did not gain as much.

US crude settled down US$5.75 to US$109.71 a barrel, below the 200-day moving average of around US$111.

Source: Singapore Business Times - 03 Sep 2008