Ding is almost right eventhough it is not that perfect.
US Stocks Plunge; DJIA Below 12000, Nasdaq Negative For '11
By Brendan Conway
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Another dose of anguish about the U.S. economic recovery sent the Dow Jones Industrial Average below the psychologically significant 12000 mark on Friday, pointing to a six-straight weekly decline that would be blue chips longest slump since 2002.
The Dow sank 142 points, or 1.2%, to 11983 in recent trading, dipping below 12000 for the first time since mid-March. The Standard & Poor's 500-stock index shed 15, or 1.2%, to 1274. The broad index has notched six weeks of declines, the longest losing streak since 2008.
The Nasdaq Composite turned negative for the year as it shed 34 points, or 1.3%, to 2651. The small-cap Russell also turned negative for the year after losing 12 points, or 1.5%, to 781 during the session.
Investors were dour after data showing U.S. May import prices showed a surprise gain of 0.2%, hinting at an inflation push coming into the U.S. from abroad. Overnight, weaker-than-expected Chinese trade data and a surprise interest-rate increase by the Bank of Korea drove Hong Kong and South Korean bourses sharply lower.
The action follows a string of weak readings on the U.S. economy that have joined with pessimism about the euro zone's sovereign-debt problems and weaker global growth to drive major stock indexes lower. The mood on the trading floor was grim.
"At the moment there doesn't seen any place to hide," said Ted Weisberg, president of Seaport Securities. "Best case scenario, [traders] don't know what to do. Worst case, they're simply throwing in the towel because they're frustrated. Nothing seems to work."
Financial stocks led the way lower. Insurer Travelers dropped 3.6% to lead blue-chip stocks after the company said it was slowing its share-buyback program after natural disasters cost the company about $1 billion over two months. Energy was also weak amid reports that Saudi Arabia would increase oil output, drive crude oil sharply lower, near $99 a barrel.
Lululemon Athletica rose 6% after reporting fiscal first-quarter earnings and providing a second-quarter outlook that were above estimates.
General Motors is open to selling its struggling Adam Opel unit if it receives an offer that is more favorable than the one it rejected in 2009, according to a report in the Wall Street Journal. Shares shed 1.3%.
Live Nation Entertainment Chairman Irving Azoff and the company's largest shareholder, Liberty Media Corp.'s John Malone, are in early talks to consider taking the company private, the New York Post reported Friday on its website, citing a person close to Live Nation. Shares rose 5.8%.
Crude-oil futures slipped near $99 a barrel, while gold futures dropped near $1,530 an ounce. The U.S. dollar was mixed, rising against the euro but losing ground against the yen.
On the economic calendar, the U.S. federal budget deficit for May will be announced at 2 p.m., EDT.
-By Brendan Conway, Dow Jones Newswires; (212) 416-2670; brendan.conway@dowjones.com
No comments:
Post a Comment