Stocks fall on broad concerns about Europe
Stocks reversed an early rise on Wall Street on Monday as traders returned to worrying about the European economy.
Optimism about a deal to prevent financial collapse in Cyprus had briefly pushed the Standard & Poor's 500 index to within a quarter-point of its record close, but stocks soon turned negative.
The S&P 500 and Nasdaq composite index both closed down 0.3 percent. The Dow Jones industrial average slipped 0.4 percent.
Stocks turned negative about an hour into the trading day Monday as the initial euphoria about Cyprus' deal to secure 10 billion euros in emergency funding was overshadowed by renewed concerns about the European economy.
The fear intensified when a top European official indicated that investors in struggling banks may be forced to take losses — an element of the Cyprus agreement that had previously been seen as unique to that country.
All 10 industry groups in the S&P 500 closed lower, with industrial and materials companies posting the biggest losses. Network technology company VMware Inc. dove when the website Business Insider reported that PayPal and eBay will remove its software from 80,000 servers. The stock fell $3.65, or 4.6 percent, to $76.50.
Among the biggest drags on the S&P 500 index were software maker Red Hat Inc., eBay and Textron Inc., an aerospace and defense contractor.
Europe still needs a long-term economic fix, said David Kelly, chief global strategist at J.P. Morgan Funds. Business activity in the 17 nations using the euro has declined continually since September 2011, according to research by Markit, a data provider.
The region's economy shrank 0.6 percent in 2012, according official government statistics.
The S&P 500 closed down five points at 1,551.69. The loss was offset in part by big jumps for Apollo Group Inc. and McGraw-Hill Cos.
The Dow fell 64 points to 14,447.75. The Nasdaq dropped nine to 3,235.30.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- McDonald’s simplifies recipe for grilled chicken
- EDMC schools on federal list for poor financial management
- New car buyers tap the brakes in March after torrid run
- McDonald’s to boost pay to at least $1 an hour over minimum wage
- Operating loss widens at Highmark parent
- Consol Energy files for IPO of coal spin-off
- Pennsylvania grid operator might delay power auction for new rules
- Summer blend to boost gasoline prices over next month
- Anchor Hocking parent EveryWare files for Chapter 11
- Venting online about job protected
- Stocks fall for 2nd straight day as corporate earnings concerns deepen