Go Finance Reporting - Share prices on the floor of Wall Street experienced a sharp decline since last November after the bank reported a sharp decline of profits last year that brought a negative sentiment towards the market.
This happens at the Goldman Sachs Group Inc., which announced its earnings decline by 53 percent in the last quarter of last year because of slowdown in trading and investment banking business. Northern Trust Corp. and State Street Corp. also announced a reduction in lower profits.
Shares of Goldman Sachs, Bank of America Corp., JP Morgan Chase & Co. and Visa Inc. each fell more than two percent.
"Banking stocks are under pressure today because they do not make money in place you expect to gain trade advantage," said market analyst at Prudential Financial Quincy Krosby, as quoted by the Associated Press (AP), Thursday (01/20/2011).
The broader Standard & Poor's 500 index dropped 13.1 percent or one percent to 1281.92, this achievement was the biggest percentage drop in the benchmark index since 23 November. It was triggered from the 10 groups that make up the S & P 500 has decreased.
Meanwhile, the Nasdaq composite index fell 40.49 points, or 1.5 percent, to 2725.36. And the Dow Jones Index lost 12.64 points, or 0.1 percent, to 11825.29. You could say this decline in the Dow Jones index is better because it is still supported by a large company a big advantage among IBM Corp., which announced a sharp increase in profit. IBM shares soared from $ 5, 04 to USD155, 69. Consolidated trading volume amounted to 4.7 billion shares.
"Many companies have a lot of good news that affects their price. However, if there is news that could weaken their stocks out there then they will fell the most in," said a senior investment management Investment Worth Alan Gayle Ridge.
Meanwhile, the observed bond prices rose despite their slightly lower yield. The yield on the 10-year Treasury note fell to 3.34 percent from 3.37 percent late Tuesday. (GoFinance)
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