Skip to comments.Stocks tossed in European economic storm (DJIA down 164)
Posted on 05/30/2012 9:43:27 AM PDT by Signalman
NEW YORK (CNNMoney) -- Stocks fell sharply Wednesday as worries about Europe's debt crisis, specifically the Spanish banking system, again shook confidence.
Investors flooded into U.S. Treasuries, raising prices and pushing the yield on the benchmark 10-year note down to a record low of 1.63%.
Oil prices fell to a 7-month low amid the broad flight from risk assets.
The Dow Jones industrial average (INDU) was down 143 points, or 1.1%, in late morning trading. The S&P 500 (SPX) sank 17 points, or 1.2%, and the Nasdaq (COMP) declined 33 points, or 1.2%.
Alcoa (AA, Fortune 500), Caterpillar (CAT, Fortune 500) and Chevron (CVX, Fortune 500) were among the hardest hit as investors shunned companies in economically-sensitive industries. Meanwhile, investors gravitated towards stocks that pay dividends and are considered defensive, such as Disney (DIS, Fortune 500) and Intel (INTC, Fortune 500).
"Europe is definitely weighing on the market," said Bernard Kavanagh, vice president of portfolio management for St. Louis-based broker Stifel Nicolaus. "Investors continue to be very pessimistic as we move into the slow months of the summer."
The European Central Bank issued a statement Wednesday saying it had not been consulted on the bailout for Bankia, the No. 4 bank in Spain, and that such a recapitalization could not be provided by the Eurosystem.
(Excerpt) Read more at money.cnn.com ...
I’m in full now, as heavy in stocks as I get. In the next 6 months I think we will be up and down as we were the last 6 months.
Not low enough yet to buy. Hang on to your money, the fun in Europe is just beginning.
Up big one day. Crashes the next day.
Now if it keeps going down like this that is when you worry.
The stock market has become a completely artificial entity where reality never intrudes, and nothing means anything anymore.
The market will be a yo yo until 1/20/2013.
Businesses have great fear of Obama and his new taxes and regulations.
If he wins you see companies move out of the country in droves.
The only jobs left will be service jobs,we are near 80% of that point now.
Obamanomics isn’t making the market very happy either.
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