On Wednesday Wells Fargo took the lead in stocks decline after the pessimistic analyst\'s note had caused sales which led to JPMorgan and other finance companies shares decrease.
On the whole Dow Jones Industrial Average index closed with the reduction by 92,12 points or by 0,92% at the level of 9949,36, besides the decline was observed for the second sequent day. JPMorgan and Bank of America shares were the weakest elements as part of this index and dropped by 1,38 USD or by 3% to 44,65 USD and by 50 cents or by 2,9% to 16,51 USD respectively. The most part of the session the stock indices were trading in the positive zone, as the profit reports of Morgan Stanley and Yahoo for the 3rd quarter appeared to be better than experts had forecasted. However, the stock indices declined to a negative area in the evening, as the Rochdale Securities\'s analyst Dick Bav lowered his investment rating for Wells Fargo, saying that profit quality was "rather bad".
During the early deals Wells Fargo stocks were trading with a slight increase, as the Bank announced about the surplus in amount of USD 3,2 bln. in the 3rd quarter. Meanwhile, Wells shares closed with the decline by 1,56 or by 5,1% at the level of 28,90. Other companies stocks in the consumer sector also dropped together with Wells shares, as the USA Fed Beige Book testified about weak consumer spendings in the major US regions in late summer and early autumn. Wal-Mart stocks were the weakest ones, which fell by 1,07 or by 2,1% to 50,63 USD when this Company had declared about the prices lowering during Christmas shopping.
Standard & Poor\'s 500 index shut lower by 9,66 points or by 0,89% at the level of 1081,40. S&P 500 index grew to 1101, but had not fixed at this level by the end of the trading session.
Nasdaq Composite index showed the most significant decrease, closed lower by 12,74 pips or by 0,59% at the level of 2150,73. Yahoo\'s stocks growth also helped this index to rise by 49 cents or by 2,9% to 17,66 when it became known that the Company\'s profit increased more than threefold in the 3rd quarter, but the spendings rate decreased.
Morgan Stanley shares also closed higher by 1,56 or by 4,8% at the level of 34,08, as the Company said about the surplus in the 3rd quarter, while Morgan Stanley brought the previous three months to an end at a loss.
Best regards,
Analyst: Vladimir Donin.
