Wall Street pulled back on Monday on a series of disappointing corporate earning report and outlooks as well as a gloomy holiday sales for retailers.
Toyota Motor Corp. projected its first-ever operating loss since 1938, bringing its nine-year growth in global vehicle sales to a halt. The revived concern over slumping auto demand in U.S. market sent General Motors down 21.6 percent and Ford down 12.2 percent.
Energy shares lost heavily on Monday as crude oil lost nearly 6 percent and closed below US$40 a barrel on the New York Mercantile Exchange. A record production cut by OPEC seems inadequate to lift the market sentiment, which remains bearish as the deepening recession is slashing world oil demand.
Caterpillar Inc., the world's largest maker of mining and construction equipment, decided to cut executive pay by up to 50 percent in 2009 due to weakening demand.
Walgreen Co., the largest U.S. drugstore chain, lost ground as the company reported that its fiscal first- quarter earnings trailed estimates. Meanwhile, Monsanto tumbled as Goldman Sachs said the recession will drive down earnings at the world's largest producer of seeds.
The Dow Jones fell 59.42 to 8,519.69. Broader indexes also moved lower. The Standard & Poor's 500 index dipped 16.25 to 871. 63; and the Nasdaq slid 31.97 to 1,532.35.
(Xinhua News Agency December 23, 2008)
