14 Apr 2009

US stocks mixed

9:42 am on 14 April 2009

US stocks ended mixed on Monday in choppy trading.

The S&P 500 and Nasdaq rose. However, the Dow slipped after Boeing forecast a lower profit for the first quarter profit.

Goldman Sachs surprised investors by posting its quarterly results a day early, and announced a $US5 billion public offering of common equity.

Goldman's stock ended the regular session up nearly 5% at $US130.15.

Other banking shares rose as a result: JPMorgan, which is due to post results on Thursday, rose by almost 3% to $US33.70.

Bank of America gained 15.4% to $US11.02 and Citigroup was up 25% to $US3.80.

The Dow Jones industrial average fell 25.57 points, or 0.32%, to 8,057.81.

Standard & Poor's 500 Index gained 2.17 points, or 0.25%, to 858.73. The Nasdaq Composite Index rose 0.77 of a point, or 0.05%, to 1,653.31.

The prospect of bankruptcy for General Motors was another negative factor after the New York Times reported that the Treasury Department is directing the company to prepare for a bankruptcy filing by 1 June. GM slid 16.2% to $US1.71.

The International Energy Agency expects world oil demand will fall by 2.4 million barrels per day this year compared with 2008. The rate of contraction in fuel consumption has reached levels last seen in the early 1980s.

US light sweet crude fell $US1.47 to $US50.77, while Brent crude shed $US3 to $US51.06 per barrel.

Trading was moderate on the New York Stock Exchange, where about 1.48 billion shares changed hands - slightly below last year's average daily volume of 1.49 billion.

About 1.84 billion shares were traded on the Nasdaq - below last year's average daily volume of 2.28 billion.

Many financial centers were closed in Europe and parts of Asia for Easter.