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| SmartMoney.com: Today's Markets |
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| U.S. Stocks Slump |
(Fri, 10 Feb 2012)
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| By Christian Berthelsen And Chris Dieterich Stocks were dragged down by tumult over the Greek bailout, disappointing readings on the U.S. economy and a downgrade of nearly three dozen Italian banks. The Dow Jones Industrial Average shed 128 points, or 1%, to 12762, in Friday afternoon trading. The Standard & Poor's 500-stock index lost 12 points, or 0.9%, to 1340, and the Nasdaq Composite lost 23 points, or 0.8%, to 2904. All 10 of the S&P's sectors were lower, led down by materials and energy. Among blue chips, Alcoa declined 3.4% and DuPont dropped 2%. Euro-zone finance ministers didn't approve a second bailout that Greece needs to stay afloat, saying the Greek Parliament must first approve the austerity measures before they will sign off on the loan deal. European markets were broadly lower, with the Stoxx Europe 600 closing down 0.9%. "Everyone was hoping the austerity package was going to be some kind of panacea, but it's clear the problem isn't as close to being solved," said Colleen Supran, principal at Bingham, Osborn & Scarborough in San Francisco.The U.S. trade deficit in December was $48.8 billion, slightly wider than the $48.5 billion expected by economists. The market also fell after the University of Michigan's consumer-sentiment survey for February came in at 72.5, weaker than the 75 reading expected by economists. Stocks had recovered some of their losses from earlier in the day, but were again knocked lower when Standard & Poor's downgraded credit ratings on 34 of the 37 Italian banks it covers, citing its previous downgrade of Italy's sovereign credit and its views on the banking sector there. Asian bourses also were mostly lower, with the Nikkei Stock Average losing 0.6%. China's Shanghai Composite bucked the trend by rising 0.1% after data showing the country's trade surplus widened more than expected in January. Crude-oil prices settled down 1.2%, to $98.67 a barrel, pushed lower after the International Energy Agency cut its 2012 oil-demand forecast citing a weakened economic outlook. Gold futures slid 0.4%, to $1,717.80 a troy ounce. The yield on the 10-year Treasury fell to 1.968%. The dollar rose against the euro but fell against the yen. In corporate news, United Parcel Service said it was boosting its quarterly dividend 9.6%, to 57 cents a share, saying cash flow in 2012 is expected to be strong. The shipping company's stock fell 0.1%. LinkedIn rallied 17% after the company reported better-than-expected fourth-quarter earnings and revenue, and provided an upbeat outlook for the current quarter and the year. Exide Technologies dropped 23% after the battery maker reported fiscal third-quarter revenue that missed expectations, citing adverse weather conditions, and said earnings for the full fiscal year will be below projections. True Religion Apparel tumbled 26% after the company missed fourth-quarter earnings and revenue estimates, and provided a 2012 outlook that was below projections. Activision Blizzard was down 2.1% after the games maker reported fourth-quarter results that exceeded expectations, while providing a first-quarter outlook that was below forecasts. ViewPoint Financial Group rallied 2.7% after Standard & Poor's said the company would replace SonoSite in the S&P SmallCap 600 Index next week. SonoSite is being acquired by Fujifilm Holdings. NYSE Euronext reported fourth-quarter results that were slightly above estimates, and was upbeat about 2012 despite a challenging near-term outlook for trading volume and currencies. The stock was up 3.4%. Corrections & Amplifications An earlier version of this article incorrectly said economist expectations for the U.S. trade deficit in December were $45.5 billion and a 74 reading for the University of Michigan's February consumer sentiment survey. ...
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