Downgrades cause market fall by Lenka Filipova

As brokerages downgraded banks and credit card companies, the stocks slumped on Monday. Thus it seems that another economy pillar is unstable. These downgrades together with reports of sluggish factory orders have the vivid impact on economically sensitive sectors including banks, home builders, and home retailers. Paradoxically, this same group was bearing recovery last week.American Express was among the first one to sell at the beginning of 2008 for a recession. Its stocks went under 4 percent. It said that the whole situation would lead to higher unemployment.According to Scott Wren, a senior equity strategist at A.G. Edwards & Sons Inc in New York, the previous last weeks were too cyclical. He expressed his doubts whether it is really good to have such cyclings. He reckoned that it was too early for cyclical process as we were going to have slower short lasting economic news in the future.The economic reports showed that the Dow Jones industrial average dropped by 108.03 points to 12,635.16. The Standard & Poor's 500 Index decreased to 1,380.82 by 14.60 points. The Nasdaq composite Index declined by 1.26 percent to 2,392.85 points. The greatest furl to the Nasdaq was the result of Google's shares abating by 4 percent to $495.43.The Internet media Yahoo Inc would recognize definitely this slump as a repudiation to the alliance proposed on Sunday by Google.Yahoo stock went up by 3.3 percent to $29.33.All in all, dropping stocks phased out flourishing stocks by a ratio 3:2 on the New York Stock Exchange and by 4:3 on Nasdaq.

by Lenka Filipova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

These news are brought to you by CantellTV, its technology partner SigEx Telecom and its founder Chris Cantell. CantellTV is the fastest growing provider of digital broadcasting coupled with enhanced communications, allowing people to easily control, view, upload and share digital content through proprietary interface. CantellTV has relationships with a growing network of international clients delivering millions of videos per day with more than 50,000 new videos uploaded and 200 hours of new TV shows broadcasted daily to a wide range of viewers, from 5 to 7 year olds of LiveCartoons; to 16 to 24 year old active social users of MyJumps; to fortune 50 corporate clients utilizing enhanced broadcasting services. CantellTV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers. Chris Cantell retains consulting arrangements with several pre-IPO companies.

Edited by: Katarina Bosanska