U.S. stocks decline as EU concerns linger; Dow falls 0.2%
Investing.com
Published Jan 04, 2012 10:08AM ET
During early U.S. trade, the Dow Jones Industrial Average fell 0.2%, the S&P 500 index slumped 0.35%, while the Nasdaq Composite index dropped 0.45%.
Concerns over the euro zone’s ongoing debt crisis intensified after Germany sold EUR4.06 billion of 10-year bonds at an average yield of 1.93%, compared with 1.98% at November's launch of the January 2022 bond, which was the worst German bond auction on record.
Adding to fears over the region’s debt woes, bank deposits at the European Central Bank's overnight facility reached a new all-time high of EUR453 billion on Tuesday, underscoring the unwillingness of European lenders to lend to each other.
Shares in the financial sector were broadly lower, tracking losses in their European counterparts. Bank of America shares fell 2.1%, Citigroup declined 1.1%, while U.S.-listed shares of Deutsche Bank sank 3%.
Yahoo saw shares drop 1.95% after it named former president of PayPal Scott Thompson as its new chief executive officer, effective January 9. Interim CEO Tim Morse will resume his duties as chief financial officer.
Meanwhile, Acme Packet saw shares plunge 18.5% after the networking company provided a fourth-quarter earnings and revenue outlook that was well below expectations, citing uncertainty in the North American service provider market.
On the upside, shares in satellite television provider TiVo surged 9.9% after the company said AT&T had agreed to make payments totaling USD164 million to settle a patent-licensing dispute. AT&T shares added 0.65% in early trade.
Shares of Dunkin' Donuts climbed 1.05% after the firm announced a distribution and expansion plan, as well as catching an upgrade from Goldman Sachs to Neutral.
Across the Atlantic, European stock markets were broadly lower. The EURO STOXX 50 tumbled 1.3%, France’s CAC 40 sank 1%, Germany's DAX fell 0.6%, while London’s FTSE 100 declined 0.5%.
Earlier in the day, the U.S. Census Bureau said factory orders rose by 1.8% in November, just below expectations for a 1.9% increase.
The previous month’s figure was revised to a 0.2% decline from a previously reported 0.4% drop.
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Written By: Investing.com
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