Stocks Drop as Bad News Continues
February 27, 2009 by Stephen Kersey
Filed under Business
The month of February has taken another turn for the worse on the stock market. The Dow Jones industrial average now sits at 7062.93 following a 1.7% drop of 119.5. Additionally, the Nasdaq composite index dropped 1%, while the S&P 500 slid 2.4%.
February Stock Market - Source: Newscom
Most fingers are being pointed at Citigroup as the main culprit for today’s bad news. In a deal with the United States government, Citigroup has decided to trade a 36% stake of equity for $25 billion. The bank will attempt to use that bailout money to raise the confidence of investors and try to survive these economic woes.
The bad news wasn’t all Citigroup related. According to various reports, General Electric’s disappointing quarterly dividend caused red flags among investors. The GE dividend dropped 68% to $.10 per share.
Overall, the Dow Jones industrial average hasn’t closed this low since the middle of 1997. Compared to the all-time high that was recorded in 2007, the Dow has lost half of its value.
The month of February has been especially harsh. In this month alone, the Dow has lost nearly 12%. That is the biggest drop for the Dow since 1933.
