| European Borrowing Woes Take a Toll on U.S. Stock Prices |
| Jul-20-2012 |
| Keywords: stocks, lower, spain, borrowing costs, earnings reports, revenues, weakening sales, |
Stocks on Wall Street run into significant headwinds as investors seek shelter amid rising borrowing costs in Europe, and inconsistent corporate profit reports.
The major U.S. stock indexes all finished down about 1%. The Dow Jones Industrial Average fell 121 points. The Nasdaq Composite dropped 41 points, the S&P 500 finished with a 14 point loss.
Financial, industrial and technology stocks among the worst performers on the blue chip index today. Bank of America, Caterpillar, Cisco Systems, Hewlett Packard, Intel and United Technologies, all down about 2% on the day.
General Electric able to buck the downward trend on the Dow. GE's stock clinging to a .35% gain at the closing bell.
Google's better than expected results are helping to minimize losses in the technology sector. The Internet giant's stock up 3% on the day.
The dollar and debt prices benefiting from save haven buying as investors react to rising borrowing costs in Spain. The yield on the Spanish 10-year government bond today spiked to 7.07%, a level deemed as too high for sustained government borrowing.
Meanwhile the yield on the U.S. government's benchmark 10-year Treasury note fell to just under 1.46%.
Dollar strength combined with renewed concerns over Europe's debt crisis helped to drive crude oil prices lower, ending seven straight days of rising prices. The August crude oil contract finished the session down $1.22, settling at $91.44. Crude logged a 4.9% gain on the week. |
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Posted by Lou Dobbs Staff at 11:00 AM Email to a friend |
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