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Business Title: U.S. Stocks Decline as Dow Heads for Longest Slump Since 2002 June 10 (Bloomberg) -- U.S. stocks fell, extending the longest weekly Dow Jones Industrial Average slump in more than eight years, amid concern the global economy is slowing. Caterpillar Inc., Alcoa Inc. and Exxon Mobil Corp., lost 1 percent or more, pacing losses among companies that are most- dependent on economic growth. Travelers Cos. slumped 3.8 percent after the insurer said it’s scaling back share repurchases because about $1 billion in catastrophe costs will likely wipe out second-quarter operating profit. Research In Motion Ltd. dropped 1.8 percent after Morgan Stanley said the maker of the BlackBerry smartphone will likely cut its 2012 earnings-per- share forecast. The Standard & Poor’s 500 Index declined 0.9 percent to 1,277.11 at 10:37 a.m. in New York. The benchmark gauge has also dropped for six straight weeks, the longest retreat since July 2008. The Dow decreased 116.44 points, or 1 percent, to 12,007.92. Its last six-week slump ended in October 2002, the start of a five-year bull market for the stock market. “People are more anxious now,” said Mike Ryan, the New York-based chief investment strategist at UBS Wealth Management Americas, which oversees $761 billion. “Some people see these economic releases as signs that perhaps the economy is going to slip back into recession. Every time we get these economic weak spots, people are going to react a bit more harshly.” $1 Trillion About $1 trillion was erased from American equity markets between the S&P 500’s peak on April 29 and yesterday amid weaker-than-expected economic reports. Equities slumped as sales of existing homes unexpectedly declined, growth in industrial production stopped and the unemployment rate rose. Federal Reserve Chairman Ben S. Bernanke said this week that the U.S. recovery was “frustratingly slow.” Global stocks fell today after China reported a less-than- estimated $13.1 billion trade surplus in May, as surging imports signaled the nation’s demand may support global growth while adding pressure for higher interest rates. Stocks also fell after U.K. manufacturing dropped more than economists forecast as an extra public holiday for the royal wedding hurt orders and the impact of the Japanese earthquake hit supplies. Prices of goods imported into the U.S. unexpectedly rose in May as increasing costs for consumer goods like autos and clothing overshadowed the first drop in fuel expenses in eight months. The 0.2 percent increase in the import-price index, its eighth consecutive gain, followed a revised 2.1 percent climb in April, Labor Department figures showed. Economists projected a 0.7 percent decrease for last month, according to the median estimate in a Bloomberg News survey. Most-Tied Companies most-tied to global economic growth slumped. The Morgan Stanley Cyclical Index dropped 1.4 percent as 29 of its 30 stocks retreated. The Dow Jones Transportation Average of 20 stocks decreased 0.8 percent. The Thomson Reuters/Jefferies CRB Index of 19 raw-material prices slumped 1 percent. Caterpillar, the world’s largest maker of construction equipment, declined 1.7 percent to $97.62. Alcoa decreased 1.2 percent to $15.32. Exxon slipped 1.1 percent to $80.29. Travelers dropped the most in the Dow, falling 3.8 percent to $58.77. The insurer expects share buybacks to be less than $250 million in the second quarter. That compares with $1.4 billion in the same period last year. Catastrophes cost the firm between $1 billion and $1.05 billion in April and May including the storms in Tuscaloosa, Alabama, and Joplin, Missouri. RIM declined 1.8 percent to $36.93 after Morgan Stanley also said that the company’s second-quarter earnings forecast may disappoint investors.
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#1. To: Brian S (#0)
Wow, so Congress really should address this, right. Well let's see what's on the House of Representatives' docket today: That's it.
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