U.S. Stocks Extend Steepest Decline in 5 Months; Exxon Drops |
| Bloomberg.com - Jul 27, 2007 |
U.S. stocks extended their biggest drop in five months on growing concern that takeovers will slow as the money to pay for them grows scarcer.
Exxon Mobil Corp., Microsoft Corp. and AT&T Inc. led declines in the Standard & Poor's 500 Index. Baker Hughes Inc., the world's third-biggest oilfield contractor, fell after reporting a decrease in earnings.
Stocks slid and U.S. Treasuries gained after Cadbury Schweppes Plc became the first company to delay a deal because of ``extreme volatility'' in debt markets. Investors are avoiding risky assets amid losses spurred by record subprime mortgage defaults, forcing banks to take on at least $32 billion of debt they would have otherwise sold to investors.
``The bubble has been in private equity from the cheap financing and when the bubble bursts, there is going to be pain,'' said Tom Wirth, who manages $1.8 billion as senior investment officer at Chemung Canal Trust in Elmira, New York. ``There'll be continued volatility and downside pressure for the market.''
Read Full Article from Bloomberg.com
- Posted: 2007-07-27 11:31:47
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