By Kate Gibson
U.S. stocks finished lower on Monday, sending the Dow Jones Industrial Average back below 9,000, after early enthusiasm over China's economic stimulus faded in favor of ongoing worries about U.S. companies, including General Motors Corp.
"News of the China stimulus and AIG's revamped bailout was diluted by ongoing earnings carnage in the financial sector," said analysts at Action Economics.
Up more than 200 points early on, the Dow (DJI) closed at 8,870.54, off 73.27 points, or 0.8%.
General Motors Corp. (GM) weighed the most on the blue-chip index, falling 22.9% after Deutsche Bank said shares of the automaker were likely worthless and that GM might not be able to fund its U.S. business past December without the government's help.
Gains were led by aluminum producer Alcoa Inc. (AA), up 5.3%.
Shares of McDonald's Corp. also bolstered the blue-chips, with shares of the fast-food giant rising 1.8% after it reported another month of growth in all of its global markets. .
The S&P 500 Index (SPX) fell 11.77 points, or 1.3%, to 919.22, with financials, consumer discretionary and information technology fronting losses among the index's 10 industry groups.
American Capital Ltd. (ACAS) was among the financial sector's greatest laggards, falling more than 42.9% after the company suspended its dividend and reported a third-quarter loss.
Energy remained the sole S&P sector on the advance, with standouts including Nabors Industries Ltd. (NBR), up 6.2%, and Peabody Energy Corp. (BTU), advancing 8.3%.
The Nasdaq Composite Index (RIXF) fell 30.66 points, or 1.9%, to 1,616.74.
Volume remained light, topping 1.1 billion on the New York Stock Exchange and 707 million on the Nasdaq, with decliners outdoing advancers 2 to 1 on both exchanges.
On the New York Mercantile Exchange, crude futures closed more than 2% higher, with oil for December delivery up $1.37, or 2.2%, to finish at $62.41 a barrel. .
Also on the Nymex, gold futures climbed $12.3 to close at $746.50 an ounce.
The dollar rose against the Japanese yen but fell against the euro. .
Treasury prices gained, pushing yields towards eight-month lows, as the government sold a record $25 billion in three-year notes. .
Active issues
American International Group Inc. (AIG) rose 8.1% as the insurer reached a deal with the U.S. government to scrap the original $123 billion bailout. The new terms allow AIG to pay less interest, as the insurer reported a loss for the third quarter of more than $24 billion. .
Circuit City Stores Inc. (CC) fell 60% after the electronics retailer filed for Chapter 11 bankruptcy protection.
NRG Energy Inc. (NRG) rejected Exelon Corp.'s (EXC) takeover bid.
Nortel Networks Corp. (NT) reported a $3.4 billion loss as revenue dropped.
After Monday's close, Starbucks Corp. (SBUX) will be among the companies reporting results, with the coffee retailer expected to report a 38% decrease in fiscal fourth-quarter earnings.
During the weekend, China announced a 4 trillion yuan ($586 billion) plan to loosen credit conditions, cut taxes and embark on major infrastructure spending.
U.S. stocks had ended with strong gains Friday as investors looked past a report showing 240,000 jobs lost in October and big quarterly losses at GM and Ford Motor Co. (F) But over the past week, the Dow, the S&P 500 and the Nasdaq each lost about 4%.
(END) Dow Jones Newswires
November 10, 2008 16:27 ET (21:27 GMT)

Publié le 10 novembre 2008 Copyright © 2008 Dowjones