Lingering euro worries weigh on Wall Street
U S stocks fell for the fifth day in six yesterday as investors kept their focus on the turmoil in Europe, but news that Greece will receive its latest debt bailout payment helped cut losses late in the session.
In the afternoon the Nasdaq briefly turned positive and the S&P rose to break-even after news that Greece will get €5.2bn in emergency aid.
Bu the turmoil in Europe has driven Wall Street’s slide and more investors were hedging against potential further losses.
The Dow fell for a sixth straight day and the S&P touched a two-month low before cutting losses.
The CBOE Volatility index, Wall Street’s “fear gauge,” rose 5.8 per cent to 20.15, the highest close in two months.
Despite the late-day rebound, eight of 10 S&P sectors ended the day lower, and nearly two stocks fell for every one that rose on the New York Stock Exchange.
The Dow Jones industrial average finished down 97.03 points, or 0.75 per cent, at 12,835.06. The Standard & Poor’s 500 Index was down 9.14 points, or 0.67 per cent, at 1,354.58. The Nasdaq Composite Index fell 11.56 points, or 0.39 per cent, at 2,934.71.
The S&P financial sector index was hurt by the news about Spanish banks, closing down 1.1 per cent. US-listed shares of Banco Santander SA fell sixper cent at $6.01.
Walt Disney reported quarterly earnings that beat expectations late yesterday on strong theme park attendance and cable advertising revenue. Shares of Disney, a Dow component, rose 1.6 per cent to $45.02, after earlier hitting a lifetime high at $45.80.
Macy’s earnings rose more than expected, but the stock fell 3.7 per cent to $38.05 on disappointment that the department-store chain didn’t raise its outlook.