Monday, January 19, 2009

US mkts shrug off poor BoA, Citi nos; Dow ends up 69 pts & Asian markets trading higher

US stocks gained for a second day shrugging off poor quarterly results by Bank of America and Citigroup.

Shares of Bank of America fell to new multi-year lows even on news that it will receive USD 20 billion in additional capital from the government to aid in the Merrill Lynch acquisition. The bank has reported loss of USD 1.8 billion in the fourth quarter versus net profit of USD 268 million a year ago. Its revenues stood at USD 15.7 billion. Its credit loss provision was at USD 8.6 billion versus USD 3.3 billion.

In the economic news, the core December CPI has been unchanged over the past four months indicating that there is no inflation at the consumer level.

The Dow Jones Industrial Average closed 68.73 points, or 0.84 percent up at 8,281.22 and the Nasdaq composite index shut shop at 1,529.33 up 17.49 points, or 1.16 percent.


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