[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|
Status: Not Logged In; Sign In
Business Title: U.S. Stocks Drop Sharply On Euro-zone Debt Fears By Kate Gibson U.S. stocks thudded lower on Tuesday as worries over European national debts overrode positive quarterly reports from companies including drug giants Pfizer Inc. and Merck & Co. "The overseas markets are weighing on sentiment right now, and bond markets around the world are rallying. At least for the morning that is going to be the story," said Dan Greenhaus, chief economic strategist at Miller Tabak. Early economic reports that showed a 5.3% jump in pending home sales and a 1.3% climb in factory orders in March did little to curb bearish sentiment. The Dow Jones Industrial Average (DJI) tumbled 250.46 points, or 2.3%, to 10, 901.37, with 27 of its 30 components posting losses, led by aluminium giant Alcoa Inc. (AA), off 4.5%. Pfizer (PFE) and Merck (MRK) were among the blue chips on the rise. The drug giants' stocks rose more than 1% each after the companies reported declining profits after making hefty mergers but also topped earnings estimates. Industrials and materials led sector declines as the S&P 500 Index (SPX) fell 29.42 points, or 2.5%, to 1,172.84. The Nasdaq Composite Index (RIXF) fell 76.9 points, or 3.2%, to 2,421.85. For every stock on the rise, more than six were falling on the New York Stock Exchange, with 436 million shares traded as of 11:05 a.m. Eastern. Composite volume came to 2.2 billion. Worries about sovereign debt weighed on European equities. Greece hired Lazard (LAZ) for financial advice though the bank said a restructuring of debt "has never been an option to be considered." The euro (CUR_EURUSD) was down 1.3% as well as the concerns over the Greek rescue package continue. Gold futures retreated from a five-month high, off $12.5 to 1,177.8 an ounce. Greenhaus pointed to a proposal in Australia to tax miners, relatively poor manufacturing data out of China, and concern that Spain is preparing to ask the International Monetary Fund for financial aid as among the bearish factors. "As that's a much larger economy that Greece, that is weighing as well," he said of the worries regarding Spain. At least for the morning, Greenhaus said he expected the overseas concerns to override positive earnings from companies including MasterCard Inc. (MA), which reported a first-quarter profit rise of 24%. U.S. stocks climbed on Monday, recapturing much of Friday's sharp slide, as a report showing rising consumer spending as well as improving car sales helped lift sentiment.
Post Comment Private Reply Ignore Thread |
|
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|