ShareThis Page

Stocks fall on slower growth in China

| Friday, April 13, 2012

U.S. stocks fell on Friday on slowing growth in China and ongoing worries about European debt.

The Dow Jones industrial average was down 63 points at 12,923. It jumped 181 points the day before. The broader Standard & Poor's 500 index fell almost seven points, at 1,381. The Nasdaq composite fell 16 points to 3,039.

Concerns about prospects for global growth remained the market focus on Friday. New data showed the Chinese economy grew at an 8.1 percent pace in the January-March period, the slowest pace in almost three years.

Investors also worried about Europe's debt problems. Yields rose for debt in both Italy and Spain, meaning they will have to pay more to borrow. Besides forcing those countries to spend more on interest payments, it's also a sign that lenders continue to be nervous.

The U.S. government reported that inflation was mild in March.

The declines were broad. Only two market sectors tracked by the S&P 500 index rose, utilities and consumer staples stocks. Both industries are considered refuges when investors are fearful of a weakening in the economy or turbulence in financial markets.

The dollar and Treasury prices rose. European markets fell broadly. France's stock index fell 1.9 percent, Germany's fell 1.8 percent. The yield on Spain's 10-year government bond rose to 5.89 percent, Italy's rose to 5.45 percent.

Among stocks making big moves:

• Google fell 2 percent after the company said it would issue new non-voting stock to shareholders.

• Coinstar, which runs the Redbox DVD rental kiosks, rose 12 percent after it raised its revenue forecast.

• Dow Chemical rose 2.4 percent after the company raised its quarterly dividend 28 percent. The company said last week it would eliminate 900 jobs and close several plants.

TribLIVE commenting policy

You are solely responsible for your comments and by using 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.