20 May 2009

Wall St slides as financials fall late in session

1:55 pm on 20 May 2009

The Dow and S&P 500 slipped on Tuesday as financial shares sank but the Nasdaq rose as investors snapped up technology shares ahead of results from Hewlett Packard.

After a choppy session, financial shares fell as the US Senate passed a bill to curb sudden credit card interest rate increases and hidden fees, a move that analysts said would hurt the profits of major credit card issuers.

Shares of American Express fell 5.1% to $US24.79, while Capital One Financial fell 4.5% to $US24.90. Shares in JPMorgan Chase & Co were off 3.9% percent to $US36.81.

The Nasdaq was cushioned from the worst of the losses, with big-tech stocks such as Apple Inc leading gains as investors snapped up shares in the technology sector ahead of results from Hewlett Packard.

The Dow Jones industrial average fell 29.23 points, or 0.34%, at 8,474.85.

The Standard & Poor's 500 Index lost 1.58 points, or 0.17%, at 908.13.

The Nasdaq Composite Index added 2.18 points, or 0.13%, at 1,734.54.

Hewlett Packard, the world's top personal computer maker, gave a more pessimistic revenue forecast for the fiscal year as it reported in-line results, sending its shares lower.

HP fell 3.9% to $US35.14 in extended trade after rising more than 2% during the regular session when it was among the top boosts to the Dow industrials.