Stocks Extend Losses, Set New Lows for New Year

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Stocks dropped Thursday, setting lows for 2005, as investors pushed aside strong earnings from Citigroup Inc. and a possible merger between Federated Department Stores Inc. and rival May Department Stores Co. to focus on disappointing technology sector earnings from eBay Inc. and Qualcomm Inc.


The Dow Jones Industrial Average fell 68.50, or 0.7 percent, to 10,471.47. The Standard & Poor’s 500 index was down 9.22, or 0.8 percent, at 1,175.41, and the Nasdaq dropped 27.71, or 1.3 percent, to 2,045.88.


Among local movers, shares of Skechers USA Inc. jumped 7.7 percent to close at $14.07 after coverage of the Manhattan Beach-based footwear firm’s stock was initiated by Susquehanna Financial, which set a rating of “net positive.”


And stocks of L.A.-based Spanish-language media giant Univision Communications Inc. and City of Industry-based mall retailer Hot Topic Inc. rose after being upgraded by equity firms. Univision gained 1.1 percent to $26.83 after being raised to “strong buy” from “buy” by Sanders Morris Harris. Hot Topic edged up 1.5 percent to $17.14 after Bear Stearns & Co. upgraded its stock to “outperform” from “peer perform.”


Video game publisher Activision Inc.’s shares dipped slightly after it said it had purchased closely held Vicarious Visions for an undisclosed price to help it develop new games. Thomas Weisel Partners also initiated coverage of Santa Monica-based Activision with a “peer perform” rating.


And L.A.-based immunodiagnostic systems maker Diagnostic Products Corp. lost 1.8 percent to close at $50.47 after its stock was downgraded to “hold” from “buy” by Matrix USA.

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