CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

Energy shares drag Wall Street to biggest percent drop since March 16

05-12-2011 09:03 BJT

NEW YORK, May 11 (Xinhua) -- The Wall Street hit its biggest percent drop since March 16 on Wednesday as energy and material stocks suffered from a sell-off in commodities market. All three major indexes dropped around 1 percent at the close.

Crude plummeted more than 5 percent to below 100 U.S. dollars a barrel Wednesday after a U.S. government report showed crude and gasoline inventories rose more than expected, dragging equities sharply lower while driving investors to the dollar for safe haven.

Moreover, traders pointed out that it was more expensive to speculate in energy commodities as the CME Group raised its margin requirements this week.

The energy and basic material sectors led the laggards on Wednesday, dropping over 2.34 percent and 2.38 percent respectively.

Investors are also concerned that global inflation might hurt U. S. economic recovery after China's consumer price index (CPI) rose 5.3 percent in April from a year ago.

Meanwhile, the Wall Street focused on the inside trading charges on Wednesday. Galleon Group hedge fund founder Raj Rajaratnam was found guilty on all 14 conspiracy and securities fraud charges of insider trading on Wednesday. Investors thought that it might raise tougher market regulation in future.

As of shares, Walt Disney Co. was down 5.44 percent, after it posted late Tuesday the second-quarter profit fell 1.2 percent, much lower than estimates.

Macy's Inc. reported a higher quarterly profit outlook as middle-class consumers increased spending. Macy's shares jumped 7. 71 percent.

American International Group and the U.S. Treasury will sell about 9 billion dollars in AIG stock. AIG stock rose 3.48 percent. The Dow Jones industrial average shed 130.33 points, or 1.02 percent, to 12,630.03. The Standard & Poor's 500 lost 15.08 points, or 1.11 percent, to 1,342.08. The Nasdaq Composite Index dropped 26.83 points, or 0.93 percent, to 2,845.06.

Editor:Wang Xiaomei |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program