Dow off 61; stocks fall for 4th straight day
Despite Steve Jobs' appearance, Apple falls 1.6%. Banks slide after analyst Dick Bove downgrades Wells Fargo. Harley Davidson gets an upgrade. Crude oil slips; gold and silver rise. Temple-Inland shares soar on International Paper's $3.4 billion bid.
Stocks fell for the fourth straight day as worries about the economy, banks and even technology combined to drive the market lower.
The declines were a disappointment because the market had opened badly, then recovered nearly all of its early declines. Then, the market faded again. The Standard & Poor's 500 Index ($INX) closed under 1,300 for the first time since March 23.
Apple (AAPL) was initially higher in anticipation of Steve Jobs' speech at the company's Worldwide Developers Conference. But the shares started to fall back once Jobs, who has been on medical leave, finished. The day introduced Apple's iCloud service and new operating systems for the iPhone and Macintosh computer lines but failed to generate huge amounts of investor excitement. The shares ended down 1.6% at $338.04.
Harley Davidson (HOG) was up 2.8% to $36.86 on an upgrade from UBS amid expectations that the motorcycle maker will see a double-digit increase in June sales.
The Dow Jones industrials ($INDU) closed down 61 points to 12,090. The S&P 500 was off 14 points to 1,286, and the Nasdaq Composite Index ($COMPX) was down 30 points to 2,703. The Nasdaq-100 Index ($NDX.X), which tracks the largest Nasdaq stocks, was off 18 points to 2,274.
Article continues below.After the close, shares of Temple-Inland (TIN) jumped a whopping 42% after International Paper (IP) bid $30.60 a share, or $3.38 billion, for the company and vowed to take the offer directly to shareholders.
Temple-Inland, which makes corrugated packaging and building products, said the bid undervalued the company. The offer was a 46% premium to Temple-Inland's close of $21.01 today. The deal reflects the willingess of companies to expand by buying new manufacturing facilities on the floor of the New York Stock Exchange.
International Paper was up 4.1% to $30.85 after hours. It had closed off 0.8% to $29.65 in regular trading.
Despite the prospect of a good takeover fight, stocks are likely to open flat on Tuesday. Earnings are due from Booz Allen Hamilton Holding (BAH), home builder Hovnanian (HOV), LDK Solar (LDK), a manufacturer of solar energy equipment, and women's apparel retailer Talbot's (TLB).
Market's off roughly 4% in four sessions
The four straight losses for the major averages have trimmed the Dow by 3.8%, with the S&P 500 down 4.4% and the Nasdaq down 4.7%. Since peaking on April 29, the major averages are off a touch less than 6% each.
Financial stocks, the weak link for the market this year, were hit again today when Rochdale Securities analyst Dick Bove downgraded Wells Fargo (WFC) to "sell." Wells Fargo shares fell as much as 2.9%, then rebounded modestly before closing down 2.2% to $26.26.
Regions Financial (RF) was off 4.9% to $6.05. Citigroup (C) fell 4.5% to $38.07.
The Philadelphia Banking Index ($BKX) was off 2% to 46.72; it's down 10.5% for the year, while the Dow and S&P 500 are up 4.4% and 2.3%, respectively. There are worse performers: Goldman Sachs (GS) is off about 20.4%, with Morgan Stanley (MS) off 17.2%.
Energy shares were down in response to lower oil prices. Exxon Mobil (XOM) and Chevron (CVX) were off about 1.1% to $80.29 and 1.3% to $99.68, respectively.
Crude oil (-CL) settled down $1.21 to $99.01 a barrel in New York and was continuing to move lower after hours. Brent crude was off $1.31 to $114.53 a barrel in London. Many traders are awaiting the outcome of Wednesday's meeting of the Organization of Petroleum Exporting Countries.
Gold (-GC) was up $11.80 to $1,554.20 an ounce. Silver (-SI) added 6.4 cents to $37.095 an ounce. Copper (-HG) was up slightly to $4.1385 a pound.
Metals shares initially moved higher after an upgrade of Freeport McMoRan Copper & Gold (FCX) from Goldman Sachs, but the rally stalled. Freeport closed off 0.3% to $49.79.
The dollar was slightly higher as interest rates moved up. The 10-year Treasury yield was at 3.002%, up from Friday's 2.997%.
|Energy prices -- New York close|
|Mon.||Fri.||Month chg.||YTD chg.|
|Crude oil (-CL)||$99.01||$100.22||-3.59%||8.35%|
|Heating oil (-HO)||$3.0174||$3.0567||-1.17%||18.62%|
|Natural gas (-NG)||$4.8270||$4.7070||3.45%||9.58%|
|(per mil. BTU)|
|Unleaded gasoline (-RB)||$2.9499||$2.9931||-6.36%||20.25%|
|(per gallon; AAA)|
The problems that had traders worried last week were still in play. Greece was still grappling with its debt problems. There was lots of posturing but no real progress over raising the United States' debt limit.
And, of course, Friday's disappointing jobs report cast a pall over the markets because it confirmed other reports suggesting the economy is slowing down.
European officials are considering a plan that would require Greece's creditors from the private sector to accept a debt exchange that would result in delayed payments -- a move that would likely be viewed as a default by Standard & Poor's standards, according to The Wall Street Journal.
Portugal ousted the Socialist government on Sunday in favor of the center-right party, paving the way for strict austerity measures.
Meanwhile, Goldman Sachs tossed out a bullish outlook it had adopted in December. Blowing up the bullish view of the economy: the March Japanese earthquake and tsunami, which caused surprisingly wide disruptions in supply chains for a variety of industries; higher oil prices and the probability of little or no help from Washington.
Only nine of the 30 Dow stocks were higher, led by United Technologies (UTX), up 0.6% to $83.71, and Microsoft (MSFT), up 0.4% to $24.01. (Microsoft is the publisher of MSN Money.)
Microsoft unveiled a new Xbox dashboard at the E3 video-game conference today. The dashboard will feature YouTube and Bing voice search. Microsoft also said it will release "Halo: Combat Evolved, Anniversary" on Nov. 15 to mark the 10th anniversary of the game's launch, with "Halo 4" pegged for a holiday 2012 launch.
The Dow laggards were Bank of America (BAC), down 4% to $10.83; JPMorgan Chase (JPM), off 2.5% to $40.53; and Alcoa (AA) and General Electric (GE), down 2% to $15.61 and 1.9% to $18.46, respectively.
At the same time, only 16 Nasdaq-100 shares were higher, led by Dell (DELL) , up 2% to $15.91, and Starbucks (SBUX), up 1.7% to $35.74. Starbucks was upgraded by BMO Securities. Ctrip.com International (CTRP) and Baidu.com (BIDU) were the laggards.
Harley-Davidson was the top performer among S&P 500 stocks, followed by packaging manufacturer Sealed Air (SEE), up 2.7% to $22.48. The laggards were Lorillard (LO) and Regions Financial (RF).
Southern Copper (SCCO) was off 11.4% to $30.78. Peru’s biggest producer of the metal declined after Ollanta Humala claimed victory in the country’s presidential runoff as voters rallied behind his pledges to stamp out corruption and extend a mining boom to the nation’s poor.
|Short hits from the markets -- New York close|
|Mon.||Fri.||Month chg.||YTD chg.|
|13-week Treasury bill||0.030%||0.030%||-40.00%||-75.00%|
|5-year Treasury note||1.598%||1.608%||-5.33%||-20.73%|
|10-year Treasury note||3.002%||2.997%||-1.57%||-9.17%|
|30-year Treasury bond||4.262%||4.231%||1.09%||-2.29%|
|U.S. Dollar Index||73.999||73.807||-0.93%||-6.67%|
|(in U.S. $)|
|U.S. $ in pounds||£0.610||£0.609||0.53%||-4.74%|
|Euro in dollars||$1.460||$1.463||1.18%||9.16%|
|(in U.S. $)|
|U.S. $ in euros||€ 0.685||€ 0.683||-1.17%||-8.39%|
|U.S. $ in yen||80.321||80.220||-1.61%||-1.29%|
|U.S. $ in Chinese||6.502||6.477||0.00%||-1.72%|
|(in U.S. $)|
|(in Canadian $)|
|(per troy ounce)|
|(per troy ounce)|
|Crude oil (-CL)||$99.01||$99.01||-3.59%||8.35%|
I never pull out in time...
... and now I have four kids!!!
Cash is still king! There is no way to keep up with an inflation rate listed in this article. Year to date for Retail Gas up 23%, Corn up 18%, Cotton up 7 %, Wheat is down 4%, These are just some of the basic's for living, Gas, Food, & Clothing up by 11%. since last year at this time. What investment is giving a 11% return? Add in the fact the dollar has lost 7% of it's value.
The best idea today is take out all your cash and make sure your home is paid off and to sell anything with a loan to get rid of payments, 18%+ interest payment are killing you. So the best return on investment is to retire debt and interest over 8%, the YTD increase for gold.
Job growth has not matched the needed 300,000 per month break even #. The government wants to claim 1 million new jobs since the 1st for the year. The only problem is 6 * 300,000 = 1.8 million just to account for population. Recovery starts with 1.5 million new jobs per month to get the 25 million unemployed working. U6 unemployment at 16%
8 million families have lost homes and another 4 million in the wings. Government wants to cancel it's debt to SSI. 500+ banks have failed. Now government wants to increase it debt.
I'm not waiting for the system to fail, it has! The only ones saying it's not broken beyond repair are those who still profit and want more time to get more money out of the treasury.
Looks like the traders using super computers need to do a software upgrade. The market has dropped like 570 points or more since 5 days ago? 10k by next week? We are one the road to a long, deep and painful depression.
You ain't seen anything yet.
How can anyone expect tis guys economic policies to work.
Don't you follow history and the soc/comm countries collapse.
It will be interesting to see if the "manipulators" will allow the market to drop below 12,000 tomorrow due to the negative psychological impact. My guess...the market will go up around 70-80 points.
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[BRIEFING.COM] The major averages finished the session on a lower note as the S&P 500 lost 0.4% while the Nasdaq shed 0.1%. The Russell 2000, which paced the retreat on Tuesday and Wednesday, added 0.2%, trimming its December loss to 3.5%.
After spending the first half of the session in a steady retreat, the S&P 500 found technical support in the 1772 area. Upon reaching that level, the index reversed sharply, and marched back to its flat line. There was no particular catalyst ... More
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