Tuesday, May 25, 2010

Overnight Market

U.S. stocks fell, dragging the Dow to its lowest level in three months, as the seizure of a Spanish bank and rising borrowing costs spurred concern Europe’s debt crisis will halt the global recovery.

US stocks slid on Monday as fresh signs of Europe's debt crisis emerge, triggered by the rescue of a Spanish savings bank. The euro dipped 1.6% to 1.2374, erasing most of last week’s gains while Libor for three- month loans in dollars climbed to the highest since July 09. Oil and copper gained on signs China may delay measures to slow economic growth.

Concerns about Europe's banking system weighed on markets after the Bank of Spain took over a small regional savings bank, CajaSur, exacerbating fears of a debt contagion spreading throughout financial markets.

The DJIA lost 127 points ot 1.24% to end at 10,067, its lowest level since Feb 10, extending last week's massive losses when the blue-chip index shrank more than 4% and briefly fell below the sensitive 10,000-point level. The tech-rich Nasdaq composite dipped 15 points to 2,214 while the broad-market S&P 500 declined 14 points or 1.29% to 1,074.

Financial shares were among the day's largest decliners. JPMorgan and BoA lost more than 3.5% to lead the Dow lower and financial shares tumbled 2.9% as a group for the biggest drop among 10 industries in the S&P 500.

Despite the accelerated selling late in the day, some pockets of strength remained in the market especially in the tech sector. Apple advanced 1.8% after Morgan Stanley raised its price target on the stock and added the company to its "Best Ideas" list. Google 1.1% after Citigroup added the No. 1 Internet search engine to its top picks live list. Yahoo! gained 0.5% as it partnered with Finnish firm Nokia, the world's largest mobile phone maker for an Internet services venture.

US existing home homes rose 7.6% to a 5-month high in April as buyers rushed to close on contracts before a federal home buyer tax credit expired.
Volume was light; declining stocks outnumbered advancing ones on the NYSE by a ratio of 19 to 12, while on the Nasdaq, nearly two stocks fell for every one that rose.

No comments:

Post a Comment