US stocks lose over 1pct on Europe fears

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Báo Đầu Tư English - 32 month(s) ago 3 readings

US stocks lose over 1pct on Europe fears

US stocks piled up losses Thursday as negative news continued from Europe, with Greece's woes deepening and Spain falling into recession.

US stocks piled up losses Thursday as negative news continued from Europe, with Greece's woes deepening and Spain falling into recession.

A trader works on the floor of the New York Stock Exchange on May 14. US stocks closed with losses well above one percent Thursday as negative news continued from Europe, with Greece's woes deepening and Spain falling into recession.

Strong quarterly earnings from Wal-Mart, the world's biggest retailer, were not enough to shatter the gloom on Wall Street, sending the Dow industrials and the S&P 500 into their fifth straight day of losses.

The Dow Jones Industrial Average tumbled 156.06 points, or 1.24 percent, to finish at 12,442.49.

The S&P 500-stock index dropped 19.94 (1.51 percent) to 1,304.86, while the tech-rich Nasdaq plummeted 60.35 (2.10 percent) to 2,813.69.

The three indices opened essentially flat then wallowed in the red the rest of the day. Discouraging US indicators on regional manufacturing and the economic outlook reinforced the bears.

"Data from the US economic docket disappointed investors, while concerns out of Greece and Spain continued to do their part in sinking global sentiment," Charles Schwab & Co. analysts said.

US financial stocks suffered, with Bank of America down 1.8 percent, Citigroup off 1.9 percent and Morgan Stanley losing 0.6 percent.

Embattled JPMorgan Chase plummeted 4.3 percent. The New York Times reported that the bank's initial estimate of a $2 billion trading loss has increased by at least $1 billion in recent days.

Dow member Wal-Mart jumped 4.2 percent after reporting a 10.1 percent surge in first-quarter profit, in a better-than expected unofficial end to the earnings season.

Hewlett-Packard edged up 0.1 percent. The struggling company will unveil a vast restructuring plan next week that will include axing about 30,000 jobs, Dow Jones's AllThingsD reported.

Facebook's ballyhooed market debut expected Friday had Wall Street buzzing.

Frederic Dickson, chief market strategist at DA Davidson & Co., noted that Facebook's investment bankers were scheduled to price its IPO after the closing bell.

"Given the fact that Facebook increased its IPO share offering by 25 percent this week, investor expectations appear sky-high... when it begins public trading on the Nasdaq," he said.

After the close, Facebook set its IPO price at $38 per share, the top of its targeted range, valuing the leading social network at $104 billion.

The bond market rallied sharply as investors fled risk. The yield on the 10-year Treasury fell to 1.70 percent from 1.76 percent Wednesday, while the 30-year dropped to 2.81 percent from 2.91 percent.

Bond prices and yields move in opposite directions.

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