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WORLD> Photo
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US stocks plunge for third straight session
(Agencies)
Updated: 2008-11-13 10:04
However, there is some concern that the bailout funds are being depleted rather quickly, said Jason O'Donnell, senior research analyst at Boenning & Scattergood. "Investors are generally in favor of the emphasis on the capital purchase provisions," O'Donnell said. But, "we're down quickly to a small portion of total funds remaining for other purposes." Paulson also announced a new goal for the program to support financial markets that supply consumer credit in such areas as credit card debt, auto loans and student loans. He said, "with a stronger capital base, our banks will be more confident" to support economic activity. But investors are worried that a severe pullback in consumer spending, which drives more than two-thirds of the US economy, will prolong a global economic downturn. Macy's shares fell US$1.04, or 11 percent, to US$8.37. Best Buy shares tumbled US$1.91, or 8 percent, to US$21.97. The future of the top US automakers remained a major concern on the Street as well, as investors waited to see whether the government would put together a bailout plan for General Motors Corp., Ford Motor Co. and Chrysler. General Motors was the only gainer among the 30 Dow stocks Wednesday, rising 16 cents, or 5.5 percent, to US$3.08. Ford gained 4 cents, or 2.2 percent, to US$1.84. Morgan Stanley, which converted into a bank holding company in September, said it plans to scale back its institutional securities business before the end of the year. The layoffs it plans are in addition to a 10 percent cut made earlier this year to the group. |
