Stocks slump on renewed eurozone jitters
The approval of terms for a bailout of Spain's banks fails to calm investors' nerves about the region's debt crisis. Spanish bond yields soar. Chipotle shares sink on slowing sales.
Updated at 12:32 p.m. ET By Andrea Tse
Stocks declined Friday amid worries about Spain's soaring borrowing costs after the approval of terms for its bank bailout package.
The Dow Jones Industrial Average ($INDU) was down 114 points at 12,829. The S&P 500 ($INX) was down 13 points at 1,364. The Nasdaq Composite ($COMPX) was down 35 points at 2,930.
A stock sell-off in Europe picked up as the government of the Spanish region of Valencia requested its own bailout after the approval by eurozone finance ministers of the bailout terms for Spain's banks, which involves a package valued at up to 100 billion euros ($122 billion).
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Approval of the rescue deal failed to calm investors' nerves about the eurozone, with Spanish bond yields again hitting levels considered unsustainable and the 10-year remaining above 7%. Demand at a Spanish bond auction Thursday was lackluster.
The FTSE in London was slipping 1.1% and the DAX in Germany was dipping by 1.73%
After the markets closed Thursday, Google (GOOG) reported second-quarter earnings of $3.35 billion, or $10.12 a share, on revenue excluding traffic acquisition costs of $8.36 billion. Analysts were looking for a profit of $10.04 a share on revenue of $8.41 billion.
Chipotle Mexican Grill (CMG) was losing about a fourth of its market value after the company's sales slowed in the second quarter, Reuters reported. At least four brokerages cut their price targets on the stock.
Microsoft (MSFT) on Thursday posted a quarterly profit of $6.93 billion, or 73 cents a share, for its fiscal fourth quarter on revenue of $18.06 billion. Analysts were looking for earnings of 62 cents a share on revenue of $18.13 billion. Microsoft saw strong growth in its server and tools business.
SanDisk (SNDK) on Thursday reported earnings of $51 million, or 21 cents a share, for the second quarter on revenue totaling $1.03 billion. The performance topped the average analyst estimate of 18 cents a share on revenue of $1.02 billion.
General Electric (GE) on Friday reported second-quarter operating earnings of $4 billion, or 38 cents a share, beating the consensus estimate of a 37-cent profit. GE's second-quarter revenue totaled $36.5 billion, missing the consensus estimate of $36.8 billion.
More from TheStreet
MSM - "radical muslim with ties to terrorists who shoots up Ft. Hood, must just be disgruntled or having mental issues."
In my neck of the woods, in a packed 300 seat theatre, there's at least 75 handguns in various waistbands, purses and holsters at any given time, no way this nutjob would have made it out alive.
Money (in and of itself) is almost never the solution to any real problem. The Fed could credit every working family that makes below $50K with a million dollars, and within a short period of time you will still have poor people, people in the middle, and people in the upper brackets... In fact, you will probably have a worse-off society than what you started with.
However, Freedom, Liberty, Justice, The Individual Pursuit of Happiness tap the inner-most core of human nature which no collective society can match. Collectivism by definition destroys the uniqueness with which we are created. We are born alone, die alone and will stand in judgment alone. When society/politicians destroy the individual ethos, they destroy our greatest human attribute -- individualism.
We were discussing the word usage of "terrorism", over our first pot of coffee... Pretty much, put into place by our Government, to "Strip us of Freedoms and Rights" in this Country as a U.S. citizen.
Never really heard it much before 9/11...Now anytime there is a threat,shooting or a stand-off, the first thing mentioned is "terrorism"....And it allows the Government, including all Law enforcement to take goon-like actions against the populace, whether involved or innocent bystanders...
We thought Orwell's 1984 was a comic book and Nazism had been buried after the War.??
I'm going to spend more time at home. Most movies suck and are just a lot of uninteresting special effects designed to entertain idiots.
Frankly this whole country is going down the tubes with too many boobs running around exercising their FREEDOM to be morons.
Go Mitt go. When you become prez, you can start a Department of Boob Elimination!
WHAT A SURPRISE
Eurozone worries- The market has been acting like Europe just went away for the past month. It is still there and the only person in America that is happy with the socialist agenda there is Barack Obama. He just hopes he can get another 4 years so he can put us in the same toilet with Europe.
When the cuts to the defense budget kick in in January we will lose over 2 milion jobs in 2013; and there is no guarantee that any president will be able to get a budget passed (and prevent this) with the disfunctional congress we have.
We are no different than the people who have overextended themselves with credit card debt. We must both stop spending and find a way to increase revenues to get ourselves out of debt or we will be facing the same problems as Spain, Italy, Etc.
If there was a vote by the PEOPLE on this, my guess is that it would be closer to 99% to 1% in favor, but it just does not fly with our elected officials because they are for the most part IN that 1%. This is not a huge, earth shattering proposal; remember that even a journey around the world starts with one step...
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[BRIEFING.COM] Stocks entered the weekend on a mixed note as the S&P 500 shed 0.1% while the Dow ended with a gain of 0.1%.
The major averages began the day on a lower note as nine of ten sectors saw losses of more than 0.5%.
The consumer staples sector was the lone exception as the group spent the entire day in positive territory thanks to the relative strength of Dow component Procter & Gamble (PG 81.89, +3.19). The second-largest staple stock advanced ... More
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