SmarTrend Market Close Wrap-Up -- December 19, 2011 (DJI,INX,IXIC)

The major U.S. equity indices closed lower Monday after an announcement by European union finance ministers and stricter rules set by the Federal Reserve.

European Union finance ministers said additional bailout funding promised by euro-currency members was not being contributed by some key governments. The members promised to provide 150 billion euros of additional resources to the International Monetary Fund. The Czech Republic, Denmark, Poland, and Sweden, countries not part of the euro, said they were willing to take part in reinforcing the IMF but there was no commitment still from the United Kingdom.

And, the Federal Reserve has decided to implement new rules that will require banks to hold additional capital. Ignoring pleas by large U.S. banks, the reserve elected to adopt stricter capital rules announced by global regulators in Basel, Switzerland. This caused many U.S. big banks to drop during the trading session.

In corporate news, Saab Automobile filed for bankruptcy today, grim news for the company's 3,000 employees. The last straw was the recent General Motors rejection of a Chinese company's attempts to gain control of the Swedish carmaker. Saab CEO Victor Muller personally handed over the bankruptcy petition to a Swedish court which was approved late today.

And, Red Hat (NYSE:RHT) reported Q3 EPS of $0.28, better than analyst estimates of $0.26 per share. Revenues for the quarter rose 23.1% year-over-year to $290 million, better than consensus estimates of $286.60 million.


The Dow Jones Industrial Average (DJI) closed 0.84% lower at 11,766.26, the S&P500 (S&P 500 INDEX,RTH) closed 1.17% lower at 1,205.35, and the Nasdaq Composite (IXIC) closed 1.26% lower at 2,523.14.

Category:

News & Politics

Tags:

• market
• closing
• stocks
• shares
• Federal Reserve
• European Union
• Saab
• Redhat

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