US Stocks Decline On Concerns Over Auto Makers, Financials

Date: Thu, Mar 5, 2009 at 12:01 PM
US Stocks Decline On Concerns Over Auto Makers, Financials

U.S. stocks declined Thursday morning, failing to build on the previous
session's bounce, as anxiety about auto makers and the financial sector
returned to center stage. The Dow Jones Industrial Average declined about 107
points shortly after the opening bell. The Standard & Poor's 500 dropped about
1.7%, hovering around 700, and the Nasdaq Composite Index fell about 1.1%.
Markets had snapped a five-day losing skid on Wednesday amid hopes that an
economic stimulus plan from China would help jolt the global economy back to
life. "Every time we get going, we fall off again," said Todd Leone, head of
listed trading at Cowen & Co.

ECONOMIC REPORT: JOBLESS CLAIMS SLIP BACK TO 639,000

The number of workers filing for state unemployment benefits falls by 31,000 to
a seasonally adjusted 639,000 last week, while the smoothed average of
continuing claims moves higher into record territory.

GILTS SURGE AS BANK OF ENGLAND RAMPS UP PRINTING PRESS

The Bank of England comes to grips with prospects for a deflationary spiral,
cutting its key lending rate nearly to zero and launching an unprecedented
program to effectively print money by buying 75 billion pounds ($106 billion)
of commercial paper and government bonds over the next three months.

CHINA'S LAWMAKERS WEIGH STIMULUS, THOUGH DETAILS VAGUE

Hopes for a major increase in Beijing's economic rescue plan are dashed, as
China's Premier Wen Jiabao pledges to bolster the economy and increase outlays
on social programs, but offers little more in terms of changes to the
government's earlier-announced $585 billion stimulus package.

ANHEUSER-BUSCH INBEV PLANS MORE COST CUTS AS NET DROPS 40%

Anheuser-Busch InBev on Thursday said its fourth-quarter profit slumped 40% as
the company unveiled a plan for which its management team is renowned: cutting
costs.