Skip to comments.Dow, S&P slide for sixth week
Posted on 06/10/2011 2:17:36 PM PDT by Signalman
NEW YORK (CNNMoney) -- Stocks retreated broadly on Friday, with the Dow ending below 12,000 for the first time in three months and the Nasdaq erasing all of its gains for the year.
Insurance and financial stocks started the selling spree, but it quickly spread to all sectors. Commodities were hit hard. Oil and silver prices slumped nearly 3%.
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Late in the session, bank stocks turned higher, helping the broader market pare losses. The Federal Reserve issued a proposal to increase capital requirements on large banks by 5%, which was far less than investors feared.
Shares of Bank of America (BAC, Fortune 500) and Goldman Sachs (GS, Fortune 500) rose 1.5% each, while Citigroup (C, Fortune 500) and JPMorgan Chase (JPM, Fortune 500) also edged higher.
But the rise in bank stocks was simply not enough to help the broader market. The Dow Jones industrial average (INDU) fell 172 points, or 1.4%, to end at 11,952.
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If it weren’t for American-owned foreign manufacturing, it would probably slide further and quicker. Services are sagging, because oil is still high despite the month-or-so-long slowdown. And the dollar remains low, of course.
There’s plenty of time before the August 2nd default. Maybe the Democrats and Republicans will agree to cut all of the social program and public education spending before then without looking forward so much to the usual, post-default, downward currency adjustment (by half or so).
Geithner warns Congress on need for debt boost, extends default deadline