European Debt Drags Markets Lower – Acadiana Business Index
- The Dow declined 64 points to 14447. The S&P 500 index fell 5 points to 1551 while the NASDAQ retreated 10 points to close at 3235.
- The major averages ended a choppy session firmly in negative territory as investors weighed the 10 billion euro bailout for Cyprus. Stocks initially opened higher amid optimism over the announced plan that involves shrinking the country’s banking system. The market erased its gains after the head of the Eurogroup suggested the deal to rescue Cyprus represented a new template for the rest of euro zone.
- All 10 sectors in the S&P 500 index were down on the session. Industrials were the worst performing group. Emerson Electric was off 1.7% to $55.83. Caterpillar lost 1.0% to $86.64. Materials also weighed on the market with Freeport McMoRan down 1.2% to $32.59. Telecom was the relative outperformer. Shares of Vodafone gained 1.4% to $28.41 following reports the company looked into selling its stake in Verizon Wireless. Over in tech, Dell added 2.6% to $14.51 after the company confirmed private-equity firm Blackstone Group and activist investor Carl Icahn submitted bids to buy the PC maker.
- Declining issues outpaced advancers by a 3-2 margin on the NYSE and 14-13 on the NASDAQ. NYSE Composite volume totaled more than 3.1 billion shares.
- Treasuries were higher with the 10-year note up 1/16 of a point to yield 1.92%.
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