Fears Of An Economic Slowdown Intensify – Acadiana Business Index
- The Dow finished down 251 points to 12573 and the S&P 500 Index lost 30 points to 1325, while the NASDAQ was lower by 71 points to 2859. NYSE Composite volume totaled over 3.9 billion shares. The NYSE was 4-1 negative on issues and on volume. Decliners beat advancers on the NASDAQ by 4-1 on issues and by 8-1 on volume.
- Markets closed near their session lows as fears of an economic slowdown intensified after a batch of disappointing economic data.
- Global manufacturing reports were weak. The Philadelphia Fed Index fell to its lowest level since last August, while euro-area manufacturing shrank at the fastest pace in three years and a gauge for China showed output contracted for an eighth straight month.
- In separate reports, existing home sales declined in May by 1.5% and the four-week moving average for jobless claims came in at its highest level since December 2011.
- A selloff in commodities led to large losses in materials and energy stocks. In turn, Alcoa fell 37 cents to $8.55 and Chevron lost $3.61 to $100.02.
- In other action, Bed Bath & Beyond hit a two-year low as it dropped $12.45 to $61.21 due to a downbeat earnings forecast.
- In bondland, Treasury prices were higher with the 10-year note up 11/32 to yield 1.62% and the 30-year bond gained a full point to yield 2.69%.
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