FX.co ★ The US stock market review for 09/11/2010

On Tuesday the stock indices of the USA closed down amid the intensified investors’ concerns about the probable influence of the stimulus plan announced by the Federal Reserve System last week. The Dow Jones Industrial Average fell by 60.09 points, or by 0.53%, to 11346.75. The Nasdaq Composite dropped by 17.07 points, or by 0.66%, to 2562.98. The Standard & Poor’s 500 lowered by 9.85 points, or by 0.81%, to 1213.40.
Bank of America shares strongly fell in price by 2.6%. Despite its plans to sell the shares of BlackRock by 25% more than it was planned, the banking giant does not have enough capital, which it should to raise by a year-end deadline. Chevron stocks lost 1.5%, after the oil giant announce its decision to purchase Atlas Energy for $3.2 billion in cash and wipe off a debt in amount of $1.1 billion. Atlas shareholders will receive $ 38.25 per share in cash that corresponds to a premium of 21% over the closing price on Monday. The shares of Atlas, which are not a DJIA component, rose in price by 34%. The background for the decline were the increasing concerns about the potential impact of the FRS plan to invest $600 billion in the economy, called as the quantitative easing-2 by Wall Street.
Ahead of the G20 summit, which starts in Seoul on Wednesday, the international controversy over the FRS measures has become more intense. According to the Tuesday data the wholesale inventories of the USA grew more than twice in September, than it was expected. Though the increase in inventory can be considered as the sign of companies’ confidence in the steady demand amid the further economic recovery, some investors are worried whether the companies have more inventory than they can sell.