Money Matters - Simplified

U.S. markets drop from early gains

New York -- U.S. markets clung to early gains Tuesday as the Agricultural Bank of China raised more than $19 billion in its initial public offering.

After an early burst of buying, gains melted away, as the Dow Jones industrial average rose to 9,841.63 early, up 152 points, before losing ground.

Most Dow components were still ahead in early afternoon trading, but shares of Home Depot Inc. fell 1.19 percent, while Verizon Communication shares dropped 0.8 percent.

Investors were buoyed by positive numbers in stocks in Asia and Europe. Known as AgbBank, the last large bank in China to go public, meanwhile, had yet to exercise an option to issue 15 percent more shares, which would likely give it a total of $22.1 billion for its IPO, the largest ever, The New York Times reported.

In early afternoon trading in New York, the Dow Jones industrial average was 11.28 points ahead, up 0.12 percent, to 9,697.76. The Standard & Poor's 500 index added 1.43 or 0.14 percent to 1,024.01. The Nasdaq composite index lost 1.33 or 0.06 percent to 2,090.46.

The benchmark 10-year treasury note gained 11/32 to yield 2.939 percent.

The euro rose to $1.2627 from Friday's $1.254. Against the yen, the dollar fell to 87.41 yen from Friday's 87.74 yen.

In Japan, the Nikkei 225 index rose 0.77 percent, 71.26, to 9,338.04.

In Britain, the FTSE 100 index added 2.93 percent, 141.47, to 4,965.00.

Copyright 2010 United Press International, Inc. (UPI).

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