U.S. stocks drop on growing Spanish woes; Dow down 0.93%
Published Jul 20, 2012 04:20PM ET
At the close of U.S. trading, the Dow Jones Industrial Average ended down 0.93%, the S&P 500 index was down 1.01% while the Nasdaq Composite index was down 1.37%.
Spanish Treasury Minister Cristobal Montoro said earlier that the recession gripping the country today will extend into next year, with gross domestic product falling 0.5 percent in 2013 instead of expanding 0.2 percent as originally forecast.
The news sent yields in Spanish government debt markets soaring to above 7%, a level deemed unsustainable by markets and illustrating a country in need of a bailout.
Investors flocked to safe-haven asset classes as part of a risk-off trading session, which sent stocks falling.
Earnings season is underway, though some traders sold on concerns that while profits have met expectations, some revenue estimates have not, which further sent stocks declining.
Leading Dow Jones Industrial Average gainers included Wal-Mart Stores, up 1.05%, General Electric, up 0.35%, and Chevron Corp., up 0.34%.
Leading Dow Jones Industrial Average decliners included Hewlett-Packard, down 2.51%, Bank of America, down 2.48%, and United Technologies, down 2.10%.
European indices, meanwhile, finished down.
After the close of European trade, the EURO STOXX 50 fell 2.83%, France's CAC 40 fell 2.14%, while Germany's DAX 30 finished down 1.90%. Meanwhile, in the U.K. the FTSE 100 closed down 1.09%.
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Written By: Investing.com
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