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.smaller Larger By JONATHAN CHENG
The Dow Jones Industrial Average suffered its steepest fall of the year as questions about the latest Greek bailout added to concerns about industrial stocks.
The Dow Jones Industrial Average suffered its steepest fall of the year as questions about the latest Greek bailout added to concerns about industrial stocks. Jonathan Cheng has details on The News Hub. Photo: Reuters
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The Dow gave up 97.33 points, or 0.8%, to 12780.95, the biggest tumble since Dec. 28. The blue-chip index narrowly avoided a triple-digit loss, extending a 33-day streak in which the Dow has avoided falling by 100 points or more. That is the longest such run since a 44-session streak that ended on Jan. 28, 2011.
The Standard & Poor's 500-stock index fell 7.27 points, or 0.5%, to 1343.23, while the Nasdaq Composite lost 16 points, or 0.6%, to 2915.83.
Leading the declines were industrial stocks, after a report from the Federal Reserve showed industrial production unchanged in January. Economists had expected a 0.7% increase.
United Technologies lost $1.56, or 1.9%, to $82.60; Caterpillar declined 1.92, or 1.7%, to 112.53; General Electric fell 18 cents, or 1%, to 18.76; and 3M shed 39 cents, or 0.5%, to 87.01. Those four stocks accounted for about one-third of the Dow's decline.
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Sentiment got an early boost after People's Bank of China governor Zhou Xiaochuan said China's central bank will expand its investments of euro-denominated assets. But those sentiments were overshadowed by suggestions that euro-zone finance officials were looking to delay at least part of the latest Greek bailout until after the country's April elections, without triggering a default.
Meantime, the Fed, in minutes released from its January meeting, reinforced expectations that the central bank stands ready to launch more easing measures in the event of further economic weakness.
"Greece is getting further and further from the forefront, but it's still an issue," said Kent Engelke, chief economic strategist at Capitol Securities Management.
U.S. stocks opened mixed as investors balanced China's pledge to step up its participation in a euro-zone bailout of Greece against reports that euro-zone finance officials were seeking ways to delay at least part of the latest bailout. Jonathan Cheng reports. . (Reuters/Brendan McDermid)
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European and Asian bourses rallied on China's euro-zone plans. The Stoxx Europe 600 finished with a gain of 0.6%, Japan's Nikkei Stock Average surged 2.3% to a six-month high and China's Shanghai Composite climbed 0.9% to a multimonth high.
Gold futures advanced 0.6%, to $1,726.30 a troy ounce, while crude-oil prices climbed 1.1%, to $101.80 a barrel. The dollar gained against the euro but slipped against the yen. The yield on the 10-year Treasury note fell to 1.934%.
In economic news, New York manufacturing activity in February expanded for the third consecutive month. Industrial production was unchanged last month, though December's output figures were revised up, and capacity utilization slipped. A measure of home-builder confidence rose to its highest level since May 2007, higher than economist estimates.
In corporate news, Kellogg rose 2.57, or 5.1%, to 52.87, and Diamond Foods added 1.16, or 5.2%, to 23.46, after Procter & Gamble said it would terminate the deal to sell its Pringles business to Diamond Foods, and instead will sell the business to Kellogg for $2.7 billion. P&G inched up seven cents, or 0.1%, to 64.55.
Apple reversed earlier gains to fall 11.79, or 2.3%, to 497.67, snapping an eight-day win streak. Chief Executive Tim Cook said at a technology conference that the company is considering what to do with its huge cash hoard, while The Wall Street Journal reported that Apple is working with Asian component suppliers to test a new tablet computer with a smaller screen.
Comcast ran up 1.27, or 4.7%, to 28.52, after the cable and television-network operator reported fourth-quarter results that beat forecasts, increased its annual dividend 44%, to 65 cents a share, and authorized a $6.5 billion stock-buyback program, with $3 billion to be repurchased in 2012.
Deere fell 4.77, or 5.4%, to 84.28, after the maker of farm tractors and combines topped fiscal first-quarter earnings and revenue estimates, but reported farm and construction machinery sales that were below the company's previous forecast.
Research In Motion rose 23 cents, or 1.6%, to 14.80, after a filing by Greenlight Capital's David Einhorn showed that the investor had made an investment in the BlackBerry maker.
Zynga slumped 2.55, or 18%, to 11.80, after the social-games services company reported better-than-expected fourth-quarter earnings and revenue, but indicated 2012 bookings growth would be slower than in 2011 and weighted toward the latter half of the year. |
