News & Financial Advice

Wall Street closed in the red Tuesday, dragged down by financial stocks after new information of concern to the health of European banks and the new solvency rules which will be submitted soon.

Closed Monday for Labor Day holiday in the U.S., the New York markets were therefore transferred to profit taking after last week registered their best performance in two months.

The Dow Jones closed down 107.24 points, or 1.03%, to 10,340.69 points.The Standard & Poor's 500 dropped 12.67 points (-1.15%) to 1091.84 points and the Nasdaq Composite fell 24.86 points (-1.11%) to 2208.89 points.

According to a Wall Street Journal, "stress tests" conducted in the spring to assess the resilience of European banks have underestimated the positions in these potentially risky sovereign debt.

Even if the information is not really new in the eyes of industry experts, it sealed the atmosphere in New York as the European markets.

Meanwhile, the Basel Committee, responsible for finalizing the new solvency rules for banks, has not issued statement after its meeting Tuesday and should reach decisions that cash loans Sunday.

The S & P financial sector lost 2.37% and the KBW bank index yielded 3.17%.Among the most significant declines, JP Morgan Chase & Co dropped 2.27% and 2.15% Bank of America.

"It is more like the consolidation movement that sales of conviction," said Maier, however Tarlow, a trader on the floor of the New York Stock Exchange for Raven Securities.

"We believe that the market is on a buying trend right now and unless there are repeated declines in large volumes, we will maintain this view."

Trading volumes are in fact remained relatively low after Labor Day.

For Bruce Zaro, chief strategist for Delta Global Advisors Technical, markets should remain volatile and move in narrow ranges until the U.S. election in early November midterm.Once that deadline has passed, Wall Street could leave much more forward, "he added.

On the upside Tuesday, Oracle jumped 5.87% after the announcement of the entry to its Board of Directors Mark Hurd arrived last month from the Directorate General of Hewlett-Packard after allegations of sexual harassment . The way HP has lost 1.04%.

The tax cut linked to the device Scellier incentive to let investment will be reduced more than expected next year to be reduced to 13.5%, reported the Voices in their Wednesday edition.

Another turn of the screw will follow in 2012 and the tax benefit would fall to 9%, the economic daily said.

The device Scellier currently provides reimbursement by the state, over a period of nine years, 25% of the purchase price of new property for rental. Observers agreed so far to say that the full tax benefit would be maintained next year for housing low-power, but it would be reduced to 15% for others.