US Market ended substantially lower today, Thursday, 27 December, 2007. Disappointing economic data and geo political tension arising due to assassination of former Pakistan Prime Minister, Benazir Bhutto sent stocks lower. Trading volume was quite light as expected due to the ongoing holiday season. Traders became concerned with disappointing durable goods order report.

Pakistani opposition leader and former Prime Minister of Pakistan, Benazir Bhutto was killed following a suicide bombing that also killed at least 20 others who attended a political rally in Rawalpindi, Pakistan. The news sent an overall negative sentiment across the market.

The Dow Jones industrial Average ended the day with a loss of 192 points at 13,359.96. The Nasdaq Composite Index, finished lower by 47.62 points at 2,676.79. S&P; 500 finished lower by 21.39 points at 1,476.29.

All the thirty Dow stocks ended lower for the day. The financial stocks were the most hit with Citigroup and JP Morgan shedding most.

Among major economic data hitting the wires today, the Commerce Department reported that durable goods new orders rose a disappointing 0.1% in November. That was below an expected gain of 2.2%, and follows a revised 0.4% decline in October as business investment trends remain sluggish.

Separately, the Labor Dept. showed initial claims for the week ended 22 December were essentially stable at 349,000. Another report showed that consumer confidence increased to 88.6 in December from a revised 87.8 in November.

Goldman Sachs report hit financial sector

The financial sector was the most hit today among all the ten economic sectors. Stocks came under pressure after Goldman Sachs said that Citigroup might cut its dividend by 40% and may write-down $18.7 billion in debt, which is higher than the previous estimate of $11 billion. Goldman also said it expects a larger write-down at JPMorgan Chase and Merrill Lynch.

All Indian ADRs ended in the red today. Tata Motors and ICICI Bank were the topmost losers, each shedding 6.5% and 5.8% respectively.

Oil prices marked the straight fourth day rally after Energy Department reported that crude stockpiles fell more than expected for the week ended Friday, 21 December, 2007. Prices have been on a roll since last Friday, 21 December and have gained more than $5.5/barrel since then. Prices once again are on the verge of kissing the $97/barrel mark. Price also rose as the greenback slipped against its rival currencies.

Crude-oil futures for light sweet crude for February delivery closed at $96.62/barrel (higher by $0.67/barrel or 0.7%).

Indian ADRs ended in green today. ICICI Bank was the topmost winner gaining 3.4%. It was followed by Wipro Technologies which gained 2.3%.

On the New York Stock Exchange, more than 984 million shares exchanged hands, with decliners outpacing advancers 24 to 7. On the Nasdaq, more than 1.4 billion shares were traded, with decliners outpacing advancers 23 to 7.

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