Dow falls 31 after recovering from early slump
The blue chips come back after an early 112-point loss. French automaker Peugeot announces 8,000 job cuts. The euro hits a 2-year low. P&G gets some new attention. Oil and gold slide. Marriott International and Supervalu sag.
Updated: 2 a.m. ETStocks finished lower today as worries built about global growth and the health of the domestic economy. But the major averages ended the day well off sharp lows from early in the day.
The Dow Jones industrials ($INDU) lost as many as 112 points before rebounding to a gain of as many as 26 points. But a late fade pushed the blue-chip index to its sixth straight loss, down 31 points to 12,573.
One catalyst for the slump: Berkshire Hathaway (BRK.B) CEO Warren Buffett conceded the economy is struggling. A second catalyst: investor disappointment that minutes from the Federal Reserve's June meeting gave no hint when it might launch a new round of economic stimulus. But a catalyst for the rebound: Activist investor Bill Ackman has begun building a stake in consumer-products giant Procter & Gamble (PG). P&G was up $2.30 to $63.70.
The finish sets up an important day on Friday. China reported early Friday that its economy grew at an annualized 7.6% in the second quarter. The growth was down from 8.1% a year ago and the lowest growth rate since the first quarter of 2009. Still, the report was in line with estimates. Meanwhile, JPMorgan Chase (JPM) and Wells Fargo (WFC) will report second-quarter results before the open. JPMorgan's results will be closely scrutinized for details about its huge derivatives loss, expected to run about $5 billion. Futures trading suggests a modestly higher open.
In addition to the Dow's loss, the Standard & Poor's 500 Index ($INX) dropped 7 points to 1,335, and the Nasdaq Composite Index ($COMPX) slid 22 points to 2,866. The Nasdaq-100 Index ($NDX) fell 26 points to 2,545.
Article continues below.Apple (AAPL), the largest influence on the index, finished down $5.53 to $598.90. It had dropped to as low as $592.68. It was Apple's first close below $600 since July 3.
Like the Dow, the S&P 500 suffered its sixth loss in a row. The Nasdaq's decline was its fifth straight. The losing streaks are the worst for the indexes since mid-May. The Nasdaq-100 loss was its fifth straight and its longest losing skein since falling for nine straight days in mid-May.
The market shrugged off a big drop in jobless claims to a seasonally adjusted 350,000, the fewest in four years. A big reason the report didn't generate excitement: Automakers have not been shutting plants down for retooling because they're scrambling to meet current demand.
P&G was the Dow's second-best performer after Merck (MRK), which jumped $1.70 to $42.91 after the drugmaker ended the late-stage study of an osteoporosis treatment because there was clear evidence of success.
The euro's tumble starts a sell-off
Stocks took their cue from the euro, which briefly hit $1.2168 against the dollar, a two-year low, before rebounding to $1.2206. A rising dollar hurts prices of commodities normally priced in dollars and hurts U.S. companies that generate large portions of their revenue from abroad.
The euro's decline -- and the dollar's gain -- was due in large part to French automaker Peugeot's (PEUGY) announcement it was laying off 8,000 workers and shutting down one of its oldest plants next year. The company already was cutting 6,000 jobs. Peugeot was off 8 cents to $8.62 in New York.
The announcement surprised the French government and stunned European financial markets. France's CAC-40 Index ($FR:PX1) index fell 22 points to 3,135. Germany's Xetra Dax Index ($DE:DAX) fell 35 points to 6,419, and the United Kingdom's FTSE-100 Index ($GB:UKX) fell 56 points to 5,608.
Crude oil (-CL) in New York settled up 27 cents to $86.08 a barrel. It had been as low as $84.21. Brent crude was up 50 cents to $100.73 a barrel. Gold (-GC) settled down $10.40 to $1,565.30 an ounce.
The 10-year Treasury yield fell to 1.479% from 1.498% on Wednesday.
| Energy prices -- New York close | ||||||||||||
| Thur. | Wed. | Month chg. | YTD chg. | |||||||||
| Crude oil (-CL) | $86.08 | $85.81 | 1.32% | -12.90% | ||||||||
| (per barrel) | ||||||||||||
| Heating oil (-HO) | $2.7733 | $2.7618 | 2.34% | -4.83% | ||||||||
| (per gallon) | ||||||||||||
| Natural gas (-NG) | $2.8740 | $2.8530 | 1.77% | -3.85% | ||||||||
| (per mil. BTU) | ||||||||||||
| Unleaded gasoline (-RB) | $2.8062 | $2.7689 | 6.63% | 5.60% | ||||||||
| (per gallon) | ||||||||||||
| Brent crude | $100.73 | $100.23 | 3.00% | -6.19% | ||||||||
| (per barrel) | ||||||||||||
| Retail gasoline | $3.3840 | $3.3830 | 0.92% | 3.30% | ||||||||
| (per gallon; AAA) | ||||||||||||
Marriott and Supervalu weigh on the markets
Meanwhile, shares of Marriott International (MAR) and supermarket operator Supervalu (SVU) were off sharply. Marriott, which warned of slowing growth in the Middle East and Asia, was off $2.45 to $35.58.
Supervalu suspended its dividend and said it was conducting a review of its strategic options after earnings fell 45% from a year ago amid intense competition for grocery dollars.
Supervalu, operator of the Albertsons, Jewel-Osco and Shaw’s chains, saw its share price cut nearly in half, down $2.60 to $2.69. Supervalu also pushed down shares of Kroger (KR) and Safeway (SWY). Wal-Mart Stores (WMT), whose expansion into groceries is a big reason for the problems with supermarkets, finished up 5 cents to $72.31.
Boeing (BA) shares closed up 19 cents to $71.71. It announced a $14.7 billion order for more than 150 737 airliners from United Continental Holdings (UAL), which was off $1.01 to $23.78.
Twelve of the Dow stocks were higher, led by Merck and Procter & Gamble. Intel (INTC) and Microsoft (MSFT), the publisher of MSN Money, were the laggards, down 65 cents to $24.74 and 67 cents to $28.63, respectively.
Meanwhile, 139 S&P 500 stocks were higehr, led by Fastenal (FAST), up $2.50 to $42.31, and Merck. Fastenal, which makes fasteners, tools, safety equipment and related products, said earnings grew 18.8% to 38 cents a share. Revenue was up 14.7% to $804.9 million. Sales growth, however, tailed off in the quarter
Safeway, Lexmark International (LXK) and Marriott International were the laggards.
Fastenal was also the top Nasdaq-100 performer, followed by Netflix (NFLX) and O'Reilly Automotive (ORLY). Outsourcing contractor Infosys (INFY) and Sears Holdings (SHLD) were the laggards.
Wells Fargo settles discrimination case for $175 million
Wells Fargo shares were off 42 cents to $32.85. The nation's largest mortgage lender will pay at least $175 million to settle allegations that the company discriminated against black and Hispanic borrowers.
The settlement announced by the Justice Department today involves at least 34,000 minority borrowers who were charged higher fees or were steered by mortgage brokers into risky subprime mortgages when they could have qualified for a prime mortgage, ones offered to borrowers with the best credit.
Wells Fargo denied it had done anything illegal but settled to avoid litigation. It will stop working with mortgage brokers, however. Mortgages sold by brokers currently represent 5% of the Wells Fargo's home loan volume, according to the company. The company stopped all subprime home lending in 2008.
The Justice Department action was triggered by a 2009 examination by the Office of the Comptroller of the Currency, The Wall Street Journal noted. The investigation found that, after controlling for credit factors, that it appeared that minority borrowers in the Washington, D.C., metro area were more likely than white borrowers to be placed in subprime loans, according to the consent order.
| Short hits from the markets -- New York close | ||||||||||||
| Thur. | Wed. | Month chg. | YTD chg. | |||||||||
| Treasury yields | ||||||||||||
| 13-week Treasury bill | 0.1000% | 0.090% | 25.00% | 900.00% | ||||||||
| 5-year Treasury note | 0.627% | 0.628% | -13.99% | -24.46% | ||||||||
| 10-year Treasury note | 1.479% | 1.498% | -10.85% | -20.95% | ||||||||
| 30-year Treasury bond | 2.564% | 2.589% | -7.20% | -11.25% | ||||||||
| Currencies | ||||||||||||
| U.S. Dollar Index | 83.809 | 83.728 | 2.51% | 4.08% | ||||||||
| British pound | 1.5442 | 1.5511 | -1.67% | -0.62% | ||||||||
| (in U.S. $) | ||||||||||||
| U.S. $ in pounds | £0.648 | £0.645 | 1.70% | 0.62% | ||||||||
| Euro in dollars | $1.22 | $1.22 | -3.27% | -5.76% | ||||||||
| (in U.S. $) | ||||||||||||
| U.S. $ in euros | € 0.819 | € 0.817 | 3.38% | 6.12% | ||||||||
| U.S. $ in yen | 79.43 | 79.72 | -0.40% | 3.02% | ||||||||
| U.S. $ in Chinese | 6.40 | 6.37 | 0.36% | 1.10% | ||||||||
| yuan | ||||||||||||
| Canada dollar | $0.983 | $0.982 | 0.04% | 0.18% | ||||||||
| (in U.S. $) | ||||||||||||
| U.S. dollar | $1.018 | $1.019 | -0.03% | -0.18% | ||||||||
| (in Canadian $) | ||||||||||||
| Commodities | ||||||||||||
| Gold (-GC) | $1,565.30 | $1,575.70 | -2.42% | -0.10% | ||||||||
| (per troy ounce) | ||||||||||||
| Copper (-HG) | $3.415 | $3.448 | -2.33% | -0.61% | ||||||||
| (per pound) | ||||||||||||
| Silver (-SI) | $27.1610 | $27.0230 | -1.63% | -2.70% | ||||||||
| (per troy ounce) | ||||||||||||
| Wheat (-ZW) | $8.4675 | $8.2625 | 11.82% | 29.72% | ||||||||
| (per bushel) | ||||||||||||
| Corn (-ZC) | $7.3225 | $7.040 | 15.36% | 13.26% | ||||||||
| (per bushel) | ||||||||||||
| Cotton | $0.6993 | 0.7102 | -1.96% | -23.72% | ||||||||
| (per pound) | ||||||||||||
| Coffee | $1.8205 | 1.847 | 6.65% | -20.73% | ||||||||
| (per pound) | ||||||||||||
| Crude oil (-CL) | $86.08 | $85.81 | 1.32% | -12.90% | ||||||||
| (per barrel) | ||||||||||||
A group of Democrats (not any Republicans or Tea Bags) in Congress are pressing for a full-out investigation of the LIBOR rate scandal. Are you ready... the LIBOR is used in some $550 Trillion in financial contracts or more than a half QUADRILLION in wranglings that do not help just hinder any economic recovery. They want to know which American banks are involved. We can all guess which ones top the list! Total outstanding financial contracts are estimated at $1 Quadrillion. Knowing that some 15 years ago, all the currencies flowing on Earth summed $50-60 Trillion, we can validate the fact that "global economics" are a complete FAILURE and need to be captured and dispensed with. The cost would go to the lenders and recipients-- who are likely the same entities. It's a racket that can be corrected, folks... close the banks and the contracts go into default. Who then comes after us? A bunch of greedy addicts in suits and penny loafers? Maybe a cartel or rebel army? Certainly no one interested in Peace on Earth and normalcy in economy.
Close the banks. It's absolutely worth the risk.
Why the next thing to fail are-- Rating Agencies...
Moody's downgrades are not helping the EU. In fact, if it costs more to borrow because of that rating and given the austerity measures, the wick on both ends of the stick of dynamite that are all of the EU nations... is burning down very quickly. Moody's missed making mortgage movement measurements a few years back. It had more to do with the crash than anything else. For no less than 8 years, no one pumping truly bad to completely fraudulent mortgage paper ever got downgraded-- ever. Now, there is reason to find credibility in these agencies but for whose benefit? The answer-- their own. Ratings are based on action criteria. In an upwardsly mobile economy... ratings are based on looking at the next post on the journey and the likelihood of reaching it. If the economy is moving, the likelihood is pretty good, so they rate areas of finesse and percieved but not validated- integrity (missed entirely with banks and bad mortgages). When the economy is trending down, the rating agencies are looking behind at past events and judging them. They have ZERO benefit to the forthcoming events other than to handicap who they are rating so it will cost them more to keep moving. Rating agencies are unnecessary impediments. Eliminating them force the recipient of the data (banks) to actually assess Risk on their own. Then, when banks make errors in judgment, we can say "that was bad, you are fired, or, you should close your doors, banker." All good for the rest of us, who are waiting impatiently for this whacko machine to bust for good.
"You may think that Romney may not be the best representative the Republicans could have selected. At least I know what religion he is,"
His religion is-- money and power. You might think those other things you say mean something to a New World Order operative, but that's just the pickle juice and your failure to detect crap-ola spin. A Wal-Mart reliant trailer park loiter is no way to live, son.
"Sen. Bernie Sanders, D-Vt., said that while millions of Americans are unemployed, "there is no reason why U.S. Olympic uniforms are not being manufactured in the U.S. This action on the part of the U.S. Olympic Committee is symbolic of a disastrous trade policy which has cost us millions of decent-paying jobs and must be changed."
Thank you Bernie.... but to the writer of the quoted article, Bernie is not a (D), he's an (I).
Bain Capital, starting with one small office supply store in Massachusetts, turned it into Staples; now over 2,000 stores employing 90,000 people.
Bain Capital also worked to perform the same kinds of business miracles again and again, with companies like Domino's, Sealy, Brookstone, Weather Channel, Burger King, Warner Music Group, Dollarama, Home Depot Supply, and many others.
He was an unpaid volunteer campaign worker for his dad's gubernatorial campaign 1 year.
He was an unpaid intern in his dad's governor's office for eight years.
He was an unpaid bishop and state president of his church for ten years.
He was an unpaid President of the Salt Lake Olympic Committee for three years.
He took no salary and was the unpaid Governor of Massachusetts for four years.
He gave his entire inheritance from his father to charity.
Mitt Romney is one of the wealthiest self-made men in our country but has given more back to its citizens in terms of money, service and time than most men.
And in 2011 Mitt Romney gave over $4 million to charity, almost 19% of his income.... Just for comparison purposes, Obama gave 1% and Joe Biden gave $300 or .0013%.
Mitt Romney is Trustworthy:
He will show us his birth certificate
He will show us his high school and college transcripts.
He will show us his social security card.
He will show us his law degree.
He will show us his draft notice.
He will show us his medical records.
He will show us his income tax records.
He will show us he has nothing to hide.
Mitt Romney's background, experience and trustworthiness show him to be a great leader and an excellent citizen for President of the United States.
MSNBC is the sorriest excuse for a "news organization" there is. They will spin ANY negative story to help out Obama, no matter what. Then again, when you have employees like Fat Ed ( Dumkof) Schultz,
Rachel the **** Maddow, Lawrence ( the lobotomized retard) McDonnell and other assorted losers - WHAT CAN YOU EXPECT ????
doom an gloom, pump an dump!!!!! different words same meaning!! screw the citizens an take the money!!!!! congress can' t do anything they are too busy covering their a - -es to care!!!!!!! vote them all out use popular vote electoral is rigged any way !! too many deals in the back room !
VOTE in November if they make it fair first ( NO BACK ROOM DEALS)
"Tea Party Patriots’ mission is to restore America’s founding principles of Fiscal Responsibility, Constitutionally Limited Government and Free Markets."
Nice, but improbable.Fiscal responsibility is a myth. You have to spend to grow and growing will incur costs. The costs are relative to the grow but as you do, those who stop growing will still demand equal pay for far less involvement. John Locke wrote our Constitution, Jefferson modified it by replacing key words. King was replaced with President. A President isn't a King. Locke crashed France in the early 1700's and King Louis repeated the process in the late 1700's and got his head chopped off for it. The problem with Free Markets is- Fiscal Responsibility. The role of REAL government in a Free Market society is to isolate the winner before they get Too Big To Fail and make them Fail. Once done, lots of runners up run around and re-invent the wheel. You are funded by people who do not want and cannot afford to be compromised by the three things you state.
I'm not Republican, Tea, Democrat, Green, Pink, Libertarian or Alien (in spite of my avatar), I'm American and not one of those parties can claim the same. By their existence, they are pariah and we STINK with pariah in America today. I want a set amount of currency based on a true Index and disallow additional printing regardless of the reason. Hurrican destruction? Move. High tuition? Don't go to school. Inflation? Don't buy it. Executive raises compromise Labor? Quit. Millionaires and Billionaires? If they usurp cash flow, force them off the soil in a barrel. The problem is that we allow people to become enarmored by money. It's not money, it's currency. Spend it. If you've spent all your life, you should be relaxed and humble in your retirement. We allow advertising to educate us. Get rid of it. The Constitution is a guideline. Follow anything without variance and you are headed off a cliff like a lemming. Keep It Simple Stupid, because if Free Markets existed, Law Firms would not. Sheer competition... when Absolute Power cannot by means have the ability to Corrupt Absolutely... has neither time or reach to design corruption. By the time the scam exists, the field of engagement is somewhere else.
I don't condemn you for your beliefs, Crazy... I wholly believe laziness put us where we are. It's time to know history, illuminate corruption and inspire a revolution that spurs progress. We are so beyond oil and gas. We are so beyond sprawl, manicured backyards, convenience items instead of native ability and steerage. Don't tread on me... I'm the future.
Life is so lonely .I am a older and single man at present .I need a woman who can love me back .I also uploaded my hot photos on..... seek40plus...... under the name of DM1129..It’s the largest and best club for seeking CEOs, seniors, successful people, users over 50.. Please Check it out!I’m serious.
democraps implode, finally!! tic toc tic toc democraps, ur finished,and the incredible irony here is, it took the very person u thought would destroy the Republicans, a black dude, that did YOU in, ur filthy lies, ur backroom whealin' and dealin' ur zero transparency regime, ur complete and utter disregard
huh?? could've been..... what/??!! hey msLSDn no matter how u spin it, ur false black messiah is thru, over, finished kaput, and soooooooooooooooooo done in Nov
Romney + obama = Reagan/carter redux a boom is coming people, even the democraps know it, the boom is the economy as it explodes with jobs and growth and the other boom, where the democraps implode, finally!! tic toc tic toc democraps, ur finished,and the incredible irony here is, it took the very person u thought would destroy the Republicans, a black dude, that did YOU in, ur filthy lies, ur backroom whealin' and dealin' ur zero transparency regime, ur complete and utter disregard for the people and the constitution, ur done!!! u can't write this stuff it's so great!! hehehe
Unemployment over 8+%, economy in the dumper, Deficit at $14+ trillion and growing by over $4 billion per day, Housing mess getting worse since banks are selling foreclosures first which means that the value of your home will go down even further, the devaluation of the dollar for the first time in US history, the country is basically BKed .. can you say Greece and Spain?? And all this in one term from our clodpated Pres, Obama!! Imagine how bad things can get in 4 more years!! Can anyone tell me anything good that Obama has done for you and I and the middle class in the last 4 years??
In 2008, you voted for Obama because he was Black .... in 2012 you vote for Obama, it's just because you are stupid, uninformed or are one of the "entitled "peeps" that is living off the system. Shame on you either way!!
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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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