14 October 2008 22:37 [Source: ICIS news]
(Adds updates throughout)
HOUSTON (ICIS news)--The Dow Jones Industrial Average (DJIA) lost ground on Tuesday after sliding throughout the afternoon, following an early 400-point gain.
The DJIA fell 76 points, or less than 1%, to lose ground for nine times in the past ten sessions.
It was the first time in nine sessions that the Dow Jones Industrial Average did not close up or down in triple digits, although it did swing in a 700-point range during the session, according to the Associated Press.
Chemical companies largely lost ground, as both the DJIA fell, and oil prices dropped below $80/bbl on both the NYMEX and ICE.
Quaker Chemical fell $2.27/share (€1.68/share), or more than 10%, to close at $18.95/share on the New York Stock Exchange.
Shares of Rockwood fell $1.16/share, or nearly 7%, to close at $15.98/share.
Dow Chemical lost 13 cents/share, or less than 1%, to close at $25.96/share.
Fertilizer companies fell, largely because corn prices on the Chicago Board of Trade (CBOT) failed to recover from last week’s losses.
Hercules, meanwhile, gained $1.39/share, or more than 8%, to close at $18.46/share.
The falling values followed several announcements by the US government.
The Treasury Department announced that it could spend $250bn to purchase preferred stocks from banks - in an attempt to provide lenders with capital.
In addition, the Federal Deposit Insurance Corp (FDIC) will temporarily guarantee the senior debt of all insured institutions that fall under its insurance programme.
The Federal Reserve Board (Fed) also revealed more details about its plans to revive the nation's market for commercial paper. US companies use commercial paper to fund much of their day-to-day operations.
Earlier, the US market for commercial paper froze, leading to worries that the nation's companies could be unable to fund their payroll and other expenses.
Under the plan, the Fed's newly created programme, the Commercial Paper Funding Facility (CPFF), will fund purchases of commercial paper of three month maturity from high-quality issuers.($1 = €0.74)
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