US stocks drop on FedEx loss, financial warnings

June 19th, 2008 - 7:38 am ICT by IANS  

DPA
New York, June 19 (DPA) US stocks suffered significant declines Wednesday, after the second-largest US package company FedEx reported a loss and a financial analyst warned of more credit crisis writedowns. FedEx reported a fiscal fourth-quarter loss of $241 million. The company had posted a $610-million profit in the year-earlier period.

Investor John Paulson, the founder of prominent hedge fund company Paulson & Co, forecast that writedowns of mortgage-related assets at financial institutions could reach $1.3 trillion - three times what has been reported to date and above an International Monetary Fund estimate of $1 trillion made earlier this year.

The blue-chip Dow Jones Industrial Average lost 131.24 points, or 1.08 percent, to 12,029.06. The broader Standard & Poor’s 500 was down 13.12 points, or 0.97 percent, to 1,337.81. The technology- heavy Nasdaq Composite Index fell 28.02 points, or 1.14 percent, to 2,429.71.

The US currency declined against the euro to 64.39 euro cents from 64.49 euro cents Tuesday and against the Japanese currency to 107.84 yen from 107.98 yen.
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