| Dow Down For 3rd Day On Eurozone Debt Crisis |
| Jul-24-2012 |
| Keywords: romney, obama, intelligence leak |
U.S. stock prices drop for a third straight day on heightened anxiety over Europe's debt crisis.
The Dow Jones Industrial average suffering its third straight triple digit loss, falling 104 points on the day. The Nasdaq Composite lost 27, the S&P 500 finished 12 points lower.
Those losses coming on renewed concerns over Europe's ability to contain its debt crisis. The Markit flash PMI gauge held steady at 46.4 in July from the month before, marking the sixth month in a row that the eurozone private sector contracted. That news further exacerbated by reports that Greece is unable to pay its debts and will likely have to resort to further debt restructuring.
News on the U.S. economy not as bad, but far from inspiring. The pace of expansion in the U.S. manufacturing sector slowed down in July from the month before, according to Markit. And the Richmond Federal Reserve reported the manufacturing sector in that region this month contracted at a much faster pace month over month.
The biggest burden on the blue chip index turned out to be Cisco Systems, which fell 5.9% on the day. The networking company said to be facing a war over market share now that VMWare is purchasing virtual network company Nicira for just under $1.3 billion.
Earning results also did little to boost market enthusiasm today. Dow components AT&T and Dupont both topped earnings targets. However Dupont warned that uncertainty in the global economy will likely result in full-year earnings coming in at the low end of its previous forecast.
And late day earnings reports from Apple and Netflix are generating a lot of selling in after hours trading.
Apple missed on both earnings and revenues, despite reporting double digit growth in both the top and bottom lines. Apple's $8.8 billion profit missed estimates by more than a dollar a share, leading to a more than 5% drop in electronic trading.
The shares of Netflix getting ravaged, falling as much as 15% despite topping quarterly estimates. Investors balking over concerns the company might not meet 2012 goals of adding 7 million new subscribers to its Internet streaming business. |
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Posted by Lou Dobbs Staff at 10:00 AM Email to a friend |
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