Worries Over Euro Zone Bailout Fund Lead Negative Day – Acadiana Business Index
- The Dow was down 52 points to 13254 and the NASDAQ lost 32 points to 3104, while the S&P 500 Index fell back below its 2008 high as it gave up nearly 9 points to 1429.
- Hopes for U.S. and Chinese stimulus measures were overshadowed by renewed euro zone concerns. News that Greece’s government failed to reach an agreement on spending cuts needed to obtain further aid prompted fears of a euro area exit. Investors were also cautious ahead of a ruling by Germany’s Constitutional Court on the country’s participation in the euro zone’s permanent bailout fund.
- Today’s losses came despite speculation that the Fed may announce another round of government bond-buying at the conclusion of the FOMC meeting on Thursday.
- Bets on central bank action in China also garnered attention following the country’s unexpected decline in August imports and slower than expected export growth. As a result, most sectors were lower.
- Telecommunication stocks edged higher as investors turned more defensive.
- Meanwhile, technology paced decliners led by Apple’s retreat of $18.38 to $661.97.
- Financials also weighed on markets as AIG fell 69 cents to $33.30 and Bank of America declined 22 cents to $8.58.
- Overall, NYSE Composite volume totaled over 3.1 billion shares. Decliners beat advancers on the NYSE by 3-2 on issues and by 2-1 on volume. The NASDAQ was 7-5 negative on issues and 3-1 negative on volume.
- In fixed-income, Treasuries eked out minor gains with the 10-year note up 1/32 to yield 1.66%.
For the complete report, click Ken’s Market Report.