By Rob Curran Of DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- U.S. stocks fell as American Express and Starbucks underscored the extent of the consumer-spending slowdown in the U.S., while commodity stocks like Devon Energy fell on concerns that not even the central bank of China could jump-start demand worldwide.
Meanwhile, fears about the viability of the U.S. auto sector dragged General Motors to its lowest level since World War II.
American Express fell $1.58, or 6.6%, to $22.40 after the credit-card provider sought bank-holding status, a move interpreted as a cry for government assistance under the bank bailout plan.
Starbucks (Nasdaq) fell 21 cents, or 2.1%, to 9.99 after the coffee-shop chain warned it was opening fewer stores overseas than planned because of a plunge in fiscal fourth-quarter profit. The chain, which built its reputation on premium-priced drinks, is also planning to sell cut-rate holiday beverages.
Among financial stocks, Goldman Sachs Group rose 3.47, or 4.9%, to 74.68; Morgan Stanley shed 50 cents, or 3.4%, to 14.08.
"It doesn't seem to get any better, no matter how much money they throw at the financials," said a trader at a midsize Wall Street firm. "Now [the crisis] has obviously contaminated the economy to a pretty severe extent, and the layoff notices are coming fast and furious. The General Motors/Chrysler/Ford Motor saga is extremely unnerving."
General Motors plunged 44 cents, or 13%, to 2.92. House Speaker Nancy Pelosi said she will push legislation next week that would qualify the auto industry for assistance from the bank bailout plan.
Ford Motor shed 13 cents, or 6.7%, to 1.80.
The housing sector, which was among the first to go into recession, is still on its knees. Toll Brothers shed 2 cents to 18.93 after the luxury home builder warned "preliminary signs of stability" in the housing market in September were "upended" during the October financial crisis. Fourth-quarter revenue fell 41%.
Relief may be on its way for some homeowners: Citigroup fell 41 cents, or 3.7%, to 10.80 after the bank said it's offering to modify the terms of as much as $20 billion in mortgages for borrowers in default or at risk of falling behind. The bank addressed the mortgage issue as one of its economists noted the increasing pressure of rising unemployment on borrowers.
Fannie Mae fell 4 cents, or 5.3%, to 68 cents; Freddie Mac fell 6 cents to 82 cents as the mortgage-finance giants looked to speed up modification of hundreds of thousands of mortgages in an effort to stave off more foreclosures.
The Dow Jones Industrial Average fell 176.58 points, or 1.99%, to 8693.96, within 520 points of the blue-chip index's Oct. 27 five-and-a-half year closing low. The Standard & Poor's 500 index fell 20.25, or 2.2%, to 898.96. The Nasdaq Composite fell 35.84, or 2.22%, to 1580.90.
Typically of the recent stock-market slump, selling was broad, with all 30 Dow components declining.
Oil prices closed below $60 a barrel for the first time since March 2007. Driller Devon Energy fell 3.80, or 4.9%, to 74. The slide for oil and other commodity prices suggests a "disinflation" process is under way, as the falloff in demand from consumers and commercial interests worldwide overshadows questions of supply, driving prices down.
Shares of miner Freeport-McMoRan Copper & Gold fell 2.68, or 9.8%, to 24.78, 81% from its peak.
Las Vegas Sands fell 2.66, or 33%, to 5.34 after the casino operator delayed developments in Macau and condominium project in Las Vegas, and raised capital in a dilutive sale of common and preferred equity and warrants. Shares of the casino operator traded for more than $120 last December but have retreated as a slowdown in consumer spending caused lower revenue on the Las Vegas Strip.
MGM Mirage fell 1.30, or 10%, to 11.36.
A silver lining: American depositary shares of Vodafone Group rose 1.11, or 6.6%, to 17.87 after the British cellphone provider cut its revenue projection, but said it could boost its free cash flow through cost cuts.
Shares of Tyco fell 3.60, or 14%, to 21.74 after the industrial conglomerate warned financing difficulties and a stronger dollar caused customers to delay projects.
(Christopher Hinton contributed to this article.)
- Rob Curran, Dow Jones Newswires; 201-938-5176; robert.curran@dowjones.com
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(END) Dow Jones Newswires
November 11, 2008 17:17 ET (22:17 GMT)

Publié le 11 novembre 2008 Copyright © 2008 Dowjones