Wall Street wobbles in early trade; Dow drops 103 points

Friday, March 6, 2009 at 4:03 am

US stocks today (March 5) slumped in the first hour of trading as news of the possible bankruptcy of General Motors left investor sentiment shaken. The benchmark Dow Jones Industrial Average skid 103 points or 1.5 per cent to 6,772.30 points.

In its annual report to market regulator SEC, the ailing General Motors hinted at possible bankruptcy if its restructuring plans does not succeed in the long term.

The Nasdaq Composite and S&P 500 too slipped into the red. The Nasdaq Composite declined nearly one per cent to 1,341.59 points while S&P 500 fell 1.4 per cent to 703.26 points.

Following General Motors’ statement that it may go bankrupt, shares of the company tumbled nearly 15 per cent to 1.88 dollars. General Motors, which has already received 13.4 billion dollars from the US, is seeking another 30 billion dollars to stay afloat. However, the scrip of Ford Motor climbed more than one per cent to 1.90 dollars.

Banking shares continued to take a beating amid concerns about the health of financial sector. Citi dropped eight per cent to 1.04 dollars. The scrip of Bank of America decreased six per cent to 3.38 dollars and that of JPMorgan Chase fell over five per cent to 18.29 dollars.

(Agencies)

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Wall Street wobbles in early trade; Dow drops 103 points

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