Post Reply
481-500 of 1458
BEIJING - CHINA said on Tuesday that consumer prices accelerated in April, which could increase pressure on policymakers in the world's third-largest economy to hike interest rates to rein in inflation.
The consumer price index, the main gauge of inflation, rose a higher-than-expected 2.8 per cent compared with April last year, the National Bureau of Statistics said.
The increase also outpaced the 2.4 per cent rise in prices in March but was below the government's own inflation target of three percent for the year.
Analysts had expected an increase of 2.7 per cent in April, according to Dow Jones Newswires.
Urban fixed asset investment, a measure of government spending on infrastructure and a key driver of China's economy, rose 26.1 per cent in the January-April period to 4.67 trillion yuan (S$943 billion).
Industrial output from the country's millions of factories and workshops rose 17.8 per cent year-on-year in April, while retail sales were up 18.5 per cent for the month to 1.15 trillion yuan, the NBS said.
STI lower at midday
SINGAPORE shares were lower at midday on Tuesday, with the benchmark Straits Times Index at 2,819.54, down 0.71 per cent, or 20.11 points.
About 1.1 billion shares exchanged hands.
Losers beat gainers 268 to 157.
Stocks: Best day in 14 months
NEW YORK (CNNMoney.com) -- Stocks rallied Monday after European officials approved a nearly $1 trillion rescue plan to contain the debt crisis in troubled nations and stabilize the euro.
The Dow Jones industrial average (INDU) gained 405 points, or 3.9%, the average's biggest one-day point and percentage gain since March 23, 2009.
The S&P 500 index (SPX) surged 49 points, or 4.4%. It was also the best day on a point and percentage basis since March 23, 2009.
The Nasdaq composite (COMP) rallied 109 points, or 4.8%. It was the Nasdaq's best day on a point basis since Oct. 28, 2008, and on a percentage basis since March 23, 2009.
Markets around the globe advanced on the plan as investors breathed a sigh of relief that aggressive action was being taken after months of mounting concern. The euro gained versus the dollar, and the dollar gained against the yen.
Treasury prices slipped, boosting the corresponding yields, as investors pulled money out of the safe-haven investment and put it into riskier assets, such as stocks.
U.S. investors were reacting to the size and scope of the rescue, said Ron Kiddoo, chief investment officer at Cozad Asset Management.
"It shows Europe is willing to do something fairly dramatic to address these problems," he said. "It doesn't solve everything, but it's a good step."
A big selloff last week left all three major indexes in negative territory for the year and the Nasdaq in a correction -- defined as a decline of at least 10% off the recent highs. The Nasdaq's decline was 10.5%. The Dow had fallen 7.4% and the S&P 500 8.5% from the late April highs.
Stocks had been down on worries about debt-plagued Greece weakening other troubled European nations, including Spain and Portugal, and ultimately destabilizing the euro.
But the selling was exacerbated last Thursday after computer trading on more than 300 stocks sparked a massive selloff. The Dow tumbled 998.50 points, the index's biggest loss ever on an intraday basis, before it recovered about two-thirds of the drop. On Friday, trades of 296 stocks were cancelled.
In the aftermath of that selloff, the Securities and Exchange Commission and the major stock exchanges all agreed Monday on the basic framework to strengthen "circuit breakers" and methods for handling erroneous trades.
The selling that plagued the market for a week or two prior to the Thursday battering started to wear out, setting markets up for a bounce, said Gary Webb, CEO at Webb Financial Group.
But with Thursday's so-called "flash crash" and continued concern about European debt, the major indexes finished the week down for the year to date. Having gotten past that, stocks could be set up for a decent bounce for a few weeks, Webb said.
"I think investors around the world are reacting well to this bailout because they see that our bailout worked," he said, referring to the $787 billion U.S. stimulus plan approved last year. "There's a price to be paid down the line, but the fact that it did stabilize our markets is reassuring them that the EU bailout will stabilize the euro."
Volatility: Last week the CBOE Volatility index, or the VIX (VIX), Wall Street's fear gauge, rallied to 13-month highs as investors priced in a bigger retreat. But on Monday, the VIX slumped 12 points, or almost 30%, to end at 28.96 as investor anxiety dissipated.
"The news out of Europe is positive, but I'm not sure how healthy today's move is," said Paul Brigandi, vice president of trading at Direxion Funds. "It shows we're back in a volatile period. We had a violent selloff last week and this huge rebound today."
He said that the moves in the market and in the VIX show investors are uncertain about how to factor in all the so-called headline risk, including Greece, the Gulf oil spill and the latest for Goldman Sachs, which is fighting off fraud charges.
Additionally, "It shows we're getting away from fundamentals like the economy and corporate profits and just focusing on the day-to-day news," he said.
Rescue plan: The European rescue package, valued at close to $1 trillion over three years, includes government-backed loans, the expansion of a stabilization program and funding from the International Monetary Fund (IMF)
Under the deal, the 16 European Union (EU) countries will provide a collective $570 billion in the form of government-backed loans. The European Commission, the EU's governing body, will provide another $76 billion under an already existing stabilization fund. The IMF will provide at least $284 billion.
Additionally, the European Central Bank said it would start buying government and corporate debt. The ECB was said to have started buying euro zone government bonds Monday, although details were not available.
Finally, the Federal Reserve joined central banks in Canada and Europe in re-establishing a program that makes more U.S. dollars available for interbank lending.
On the move: Gains were broad based, with 30 Dow components rallying.
Big contributors to the Dow's gains were aerospace firms Boeing (BA, Fortune 500) and United Technologies (UTX, Fortune 500), heavy-equipment maker Caterpillar (CAT, Fortune 500), tech firms IBM (IBM, Fortune 500) and Hewlett-Packard (HPQ, Fortune 500), as well as 3M (MMM, Fortune 500), McDonald's (MCD, Fortune 500) and Procter & Gamble (PG, Fortune 500).
Market breadth was negative. On the New York Stock Exchange, winners topped losers by almost 19 to 1 on volume of 1.86 billion shares. On the Nasdaq, advancers beat decliners by seven to one on volume of 2.87 billion shares.
Fannie Mae: Mortgage backer Fannie Mae (FNM, Fortune 500) asked for another $8.4 billion from the federal government Monday after reporting a massive first-quarter loss. The losses were due to accounting changes and the continued weakness in the U.S. housing market.
Fannie Mae, along with fellow mortgage company Freddie Mac (FRE, Fortune 500), was put under government conservatorship during the height of the financial crisis in fall 2008. It already owed the government $76.2 billion.
Last week, Freddie Mac asked for another $10.6 billion after posting an $8 billion quarterly loss.
World markets: Stocks around the globe finished higher. In Europe, France's CAC 40 gained 9.7%, Germany's DAX added 5.3% and Britain's FTSE rose 5.2%. On Monday, the Bank of England said it will keep its key interest rate unchanged at a low 0.5%.
Asian markets rallied as well, with Japan's Nikkei adding 1.6% and Hong Kong's Hang Seng gaining 2.5%. On Friday, the Bank of Japan pumped $22 billion into financial markets to ease fears about the impact of the Greek debt crisis.
Dollar and commodities: The euro gained 1% against the dollar, continuing to recover after having fallen to a 14-month low versus the U.S. currency last Thursday. The dollar rose 1.7% versus the yen.
U.S. light crude oil for June delivery gained $1.69 to settle at $76.80 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery slid $9.60 to settle at $1,200.80 per ounce.
Bonds: Treasury prices tumbled, pushing the yield on the 10-year note to 3.57% from 3.43% Friday. Treasury prices and yields move in opposite directions.
Asian markets extend losses
HONG KONG - ASIAN markets extended losses on Tuesday, as credit-tightening steps in China and a windfall tax on mining firms in Australia overshadowed a Wall Street rally and fresh hopes for Greece.
The euro was up marginally but still hovering at one-year lows after Germany approved its share of a 110-billion-euro rescue for debt-ridden Greece. The euro was at 1.3202 dollars at 0250 GMT, from 1.3195 in New York late Monday.
Chancellor Angela Merkel's cabinet agreed the unpopular 22.4-billion-euro contribution and aims to fast-track final approval through parliament by Friday, despite public opposition ahead of a state election at the weekend.
'What we're seeing is the bailout package being approved... and that has captured the market's attention,' Suresh Ramanathan, a regional rates and foreign exchange analyst at CIMB Group in Malaysia, told AFP.
However, Asian investors were focused on domestic issues. Shanghai suffered from fresh moves by China's central bank on Sunday to rein in bank lending, in a bid to prevent a damaging property bubble.
The Shanghai market, which was closed on Monday for a public holiday, fell 1.05 per cent. Hong Kong edged 0.03 per cent higher on bargain-hunting after the announcement hit Chinese banks and property firms listed in the city on Monday. Sydney gave up 0.17 per cent as investors digested the impact of Canberra's proposed 'super tax' on mining profits.
Stocks start May strong
NEW YORK (CNNMoney.com) -- Stocks rallied Monday, bouncing back after a big selloff last week as investors welcomed news that European leaders agreed to provide Greece with $146 billion in aid over the next three years.
A number of better-than-expected economic reports and some positive monthly sales numbers from the nation's automakers added to the gains.
The Dow Jones industrial average (INDU) rallied 143 points, or 1.3%. The S&P 500 index (SPX) gained 15 points or 1.3%, surpassing 1,200, a key psychological level. The Nasdaq composite (COMP) rose 37 points or 1.5%.
Investors welcomed reports that Greece will receive a substantial bailout from the European Union (EU) and the International Monetary Fund (IMF), as it set to rest worries that the country's ballooning deficit would drag on the euro and exacerbate problems for other debt-plagued nations. Portugal, Italy, Ireland, Greece and Spain - the so-called PIIGS, have all struggled to pay back debt.
"We're seeing a reflex rally after last week's selling," said Jamie Cox, managing partner at Harris Financial Group.
"The bailout happened and it's reassured us," he said. "You put Greece into the background, that means there is a template for all other EU bailouts."
The Greek bailout, along with better-than-expected reports on manufacturing and construction spending in the U.S., overshadowed reports that China is boosting its bank reserves to counteract inflationary pressure. Concerns about China limiting its lending dragged on markets earlier this year.
Investors may have also taken some comfort from comments from influential investor Warren Buffett over the weekend. Buffett said he doesn't think Goldman Sachs did anything wrong in the sale of subprime-related securities at the center of an SEC fraud charge and potential criminal probe from the Justice Department. Buffett's Berkshire Hathaway has a big investment in Goldman Sachs' preferred stock.
Stocks tumbled Friday, posting a weekly decline for the first time in nine weeks, after reports that Goldman Sachs is facing a criminal probe sparked analyst downgrades and a selloff in the financial sector.
Monday, Goldman Shares (GS, Fortune 500) gained 5%, rising along with a variety of financial shares. The KBW Bank (BKX) sector index added 1.7%.
However, gains were broad-based, with 29 of 30 Dow stocks advancing, led by Boeing (BA, Fortune 500), United Technologies (UTX, Fortune 500), Chevron (CVX, Fortune 500), Hewlett-Packard (HPQ, Fortune 500), IBM (IBM, Fortune 500), 3M (MMM, Fortune 500) and Caterpillar (CAT, Fortune 500).
Auto sales: Auto and truck sales were being released throughout the session. Ford Motor (F, Fortune 500) posted a 25% year-over-year sales gain in April, the fifth straight month of 20% or more improvement. General Motors (GM) said sales rose 6% from a year ago and fell 2% from last month.
Toyota Motor (TM) said sales for April rose 24% versus a year ago, while Honda Motor (HMC) said sales rose 13% versus the previous year.
Greece: Worries that Greece would default on its debt have dragged on the stock market for weeks, particularly with a May 19 deadline looming for the country to pay back over $11 billion.
But over the weekend, the EU and the IMF agreed to provide $146 billion in aid over three years, with up to $40 billion available in the first year. The loans were granted after Greece announced it was taking on new "austerity" measures to cut expenses and bring down its budget. On Monday, influential Germany voted to provide $40 billion over three years, saying that letting the country go bankrupt would destabilize the euro.
Airlines: UAL (UAUA, Fortune 500)'s United Airlines said it will buy Continental (CAL, Fortune 500) in a $3.2 billion stock deal that will create the world's largest airline, overtaking current leader Delta Air Lines (DAL, Fortune 500).
The combined company will use United's name and Continental's logo and is expected to have annual revenues of $29 billion.
Apple: Apple (AAPL, Fortune 500) said it sold 1 million iPads in one month, with sales outpacing the first month for the iPhone by roughly two to one.
Economy: The Institute for Supply Management's April manufacturing index rose to 60.4 from 59.6 in March. Forecasts had called for a rise to 60, according to a consensus of economists surveyed by Briefing.com.
March construction spending rose 0.2%, the government reported. Spending fell 2.1% in April and was expected to fall 0.3%.
Personal income for March rose 0.3% after rising 0.1% in February, according to a Commerce Department report released before the start of trading. Economists thought income would rise 0.3%.
Personal spending rose 0.6% in March, in line with forecasts, after rising 0.5% in the previous month.
World markets: In overseas trading, European markets rose, with France's CAC 40 up 0.3% and Germany's DAX up 0.5%. London's FTSE was closed.
Asian markets were mixed, with Hong Kong's Hang Seng index down 1.4% and Japan's Nikkei up 1.2%.
The dollar and commodities: The dollar fell versus the euro and gained against the yen.
U.S. light crude oil for June delivery rose 4 cents to settle at $86.19 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $2 to $1,182.70 per ounce.
Bonds: Treasury prices slipped, raising the yield on the 10-year note to 3.70% from 3.66% Friday. Treasury prices and yields move in opposite directions.
Market breadth was positive. On the New York Stock Exchange, winners topped losers by over three to one on volume of 1.18 billion shares. On the Nasdaq, advancers topped decliners by over two to one on volume of 2.34 billion shares.
DOW -158 PTS
GREECE FRAUD BAILOUT
& BP OIL SPILLS
STi STiLL in DOW PHOBIA
STi +15.6
HK +329.67
* He meditates to get Energy *
If he can use the YOGA Energy
to PUSH Stock Price . . . . . . . .
today Friday April 30, 2010 page 42
He has spent 70 years without food or water
AHMEDABAD
The yogi, Prahlad Jani (picture), is sealed in a hospital in Ahmedabad where he is under 24-hour observation by 30 doctors and will be subjected to a series of medical tests.
“The observation from this study may throw light on human survival without food and water,” said Dr G Ilavazahagan, director of India’s Defence Institute of Physiology and Allied Sciences.
“This may help in working out strategies for survival during natural calamities, extreme stressful conditions and extra-terrestrial explorations like future missions to the Moon and Mars by the human race.”
The experiment started on April 22 and will take 15 to 20 days.
“Jani says he meditates to get energy. Our soldiers will not be able to meditate, but we would still like to find out more about the man and his body,” said Dr Ilavazahagan.
— A team of military doctors backed by India’s national defence research centre is studying an 83-year-old holy man who claims to have spent seven decades without food or water.AFP
Friday: 30 APRIL 2010 10:25am
DOW RUST
DOW DOUBT
DOW PHOBIA
DOW DISTRUST
pharoah88 ( Date: 30-Apr-2010 10:12) Posted:
|
Singapore to grow 8.9% in 2010: IMF
joannhuang@mediacorp.com.sg
Jo-ann Hu ang and Millet Enrique z
Dow in triple-digit rally
By Julianne Pepitone, staff reporterApril 29, 2010: 4:25 PM ETNEW YORK (CNNMoney.com) -- Stocks jumped Thursday, with the blue-chip Dow index ending more than 120 points higher, as investors reacted to a rise in Exxon Mobil earnings and brushed off concerns about European debt problems.
The Dow Jones industrial average (INDU) gained 122 points, or 1.1%, to end at 11,167.32. The S&P 500 index (SPX) added 15 points, or 1.3%, to settle at 1,206.77. The Nasdaq composite (COMP) rose 40 points, or 1.6%, to end at 2,511.92.
Gains were broad based, with 27 of the 30 Dow components ending higher. Financial shares led the advance, and the tech sector got a boost after Hewlett-Packard (HPQ, Fortune 500) said late Wednesday it will buy struggling smart phone maker Palm (PALM) for $1.2 billion, although HP's stock ended 0.8% lower.
"The market is enjoying one of the best earnings seasons in recent history," said Art Hogan, chief market strategist at Jefferies & Co. "It's more than enough to shift focus from Europe and shed concerns about their debt."
On Wednesday, the Dow rose back above 11,000 after the Federal Reserve left interest rates unchanged and said the economy is improving. The central bank's pledge to keep interest rates low helped investors turn their focus away from the debt issues in Europe.
European concerns easing: On Tuesday, rating agency Standard and Poor's downgraded the sovereign debt ratings of Greece to junk status and lowered Portugal's investment grade status. On Wednesday, S&P also downgraded its investment grade rating of Spain's long-term debt.
Worries about Greece have abated recently as European officials seem to be nearing agreement on a rescue package for the debt-laden nation.
"We already knew part of this story months ago," Hogan said. "Maybe the ratings agencies took time actually to downgrade, but we've known these countries are in trouble."
Greece's economy is one of the smaller ones in the euro zone, Hogan noted, so its debt rating is not as much of a concern as that of a larger country like Spain or Italy. Even though Spain was downgraded Wednesday, the move was not major because it remains investment grade, Hogan said.
As long as a country's debt is investment grade -- which means it can still be used as collateral -- any downgrades are considered merely "warning shots," Hogan said. Unless a major economy's debt is downgraded to junk status, euro zone concern should remain contained, he added.
Earnings: Several big corporations reported their quarterly results before the opening bell Thursday.
"Four times a year we forget about everything but earnings," Hogan said. "This is the biggest day of the busiest week for earnings, and luckily the stream has been good."
Exxon Mobil (XOM, Fortune 500) reported a surge in earnings but still missed Wall Street expectations. The oil giant said it earned $1.33 per share in the first quarter, which fell short of the $1.41 per share forecast by a consensus of analyst opinions from Thomson Reuters. The stock closed 0.9% lower.
Aetna (AET, Fortune 500) managed to beat expectations when it reported operating earnings of 98 cents per share for the first quarter, compared to 96 cents in the prior year. Excluding certain charges, EPS was 77 cents, the insurer said. Analysts had forecast EPS of 68 cents.
Procter & Gamble (PG, Fortune 500) reported a profit for its third quarter that managed to edge above expectations. The company reported earnings of 83 cents per share, which was slightly lower than its year-earlier EPS of 84 cents. Analysts expected EPS of 82 cents.
Viacom (VIA) reported a surge in profit for the quarter, with diluted earnings of 40 cents per share. That was a 38% jump from 29 cents per share in the year-earlier quarter.
Economy: The Senate officially started debate of Wall Street reform late Wednesday, after three days of standoff and three failed votes to move forward. Republicans waived their right to block the bill, after it became clear Democrats had clinched the 60 votes needed to end the filibuster.
The government released its weekly report on initial claims for unemployment benefits before the opening bell Thursday. The number of first-time filers fell 11,000 to 448,000 in the week ended April 24. Analysts expected a drop to 445,000 new claims.
Also on Thursday morning, the House Financial Services committee held a hearing on potential implications of the Greece crisis.
Outlook: "Earnings never happen in a vacuum," said Hogan, the analyst at Jefferies. "This is a very busy reporting day, but by next week it will begin tapering off."
But Hogan noted economic data "generally have been positive lately," with good news outweighing the lingering bad.
He added: "What should we should think about when buying stocks is: What's this company's ability to earn money?"
World markets: European shares, including Britain's FTSE 100, the CAC 40 in France and Germany's DAX, ended higher.
But Asian markets continued to struggle. The Shanghai Composite tumbled 1.1% and the Hang Seng in Hong Kong fell 0.8%. Japan was closed for a holiday.
The dollar and commodities: The dollar declined 0.2% against the euro and 0.8% against the British pound, but rose 0.1% against the Japanese yen.
U.S. light crude oil for June delivery rose $1.95 to settle at $85.17 a barrel.
COMEX gold for June delivery fell $3 to end at $1,168.80 an ounce.
Bonds: Treasury prices inched up, with the yield on the benchmark 10-year note falling to 3.74%. Bond prices and yields move in opposite directions.
Market breadth was positive. On the New York Stock Exchange, winners topped losers almost four to one on volume of 1.4 billion shares. On the Nasdaq, advancers beat decliners three to one, on volume of 3 billion shares.
Dow back above 11,000
NEW YORK (CNNMoney.com) -- The Dow gained Wednesday after the Federal Reserve said that economic activity is picking up, and that it will hold a key short-term interest rate steady for an extended period of time.
The broader market was mixed as investors considered European debt issues and a batch of quarterly earnings reports.
The Dow Jones industrial average (INDU) gained 53 points, or 0.5%, reclaiming the 11,000 level it lost in the previous day's selloff. The 11,000 level has psychological meaning, but is not a key technical level for traders.
The S&P 500 index (SPX) added 7 points, or 0.7%, closing above 1,185, a key support level. The Nasdaq composite (COMP) was barely changed.
Stocks had surged more aggressively in the first 90 minutes after the roughly 2:15 p.m. ET Fed announcement but gave up bigger gains late in the session.
Stocks had struggled earlier as earnings news competed against euro zone debt worries after Standard & Poor's cut Spain's rating, one day after lowering Portugal's debt rating and cutting Greece's rating to junk. The downgrades pummeled U.S. stocks Tuesday and also dragged on international markets Wednesday.
But the Fed announcement seemed to reassure investors, as it offered both a positive take on the economy and promised no change in interest rates for the foreseeable future.
After the close Wednesday, Hewlett-Packard (HPQ, Fortune 500) said it was buying smartphone maker Palm (PALM) in a $1.2 billion all-cash deal that values Palm at $5.70 per share. The deal puts an end to months of takeover rumors regarding the struggling company, a leader in the handheld device market that has struggled amid the rise of smartphones.
Fed: The central bank held the fed funds rate steady at historic lows near zero, as expected, and also said that conditions "are likely to warrant exceptionally low levels of the federal funds rate for an extended period."
Once again, Federal Reserve Governor Thomas M. Hoenig dissented, objecting to the "extended period" phrase on worries about inflationary concerns.
The bankers also talked up the economy, saying activity has strengthened, the labor market is starting to improve and household spending has picked up a bit, but not enough to drive inflation.
The report offered no surprises, said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez.
"People were expecting them to be incrementally more positive about the economy, as they have been in the last few statements, to keep the 'extended period' phrase and for Hoenig to dissent again," Shapiro said.
"A few people may have been anticipating a surprise but I think everybody else had their expectations fulfilled," he said.
Greece: The country is facing a May 19 deadline for refinancing about $11.4 billion in debt and investors are worried it could default. Although Greece has gotten the OK to access over $53 billion in loans from the European Union and the International Monetary Fund, the funds have not yet been made available.
But worries were partly allayed Wednesday on reports that the loan package could be increased to as much as $160 billion. Additionally, Germany -- the largest of the 16 euro zone countries -- said its portion of the initial loan package could be approved by the end of next week. Germany's perceived reluctance to ante up has added a layer of uncertainty to the proceedings.
Following the reports, the cost of insuring Greek debt dropped from record highs hit in the morning, and the euro bounced back versus the dollar after falling to a one-year low.
Quarterly results: Another batch of better-than-expected quarterly results helped give stocks some support.
Roughly 82% of earnings have topped estimates. Should that figure hold up, it would be the highest percentage of companies beating expectations in Thomson's history.
Dow Chemical (DOW, Fortune 500) reported higher quarterly sales and earnings that topped estimates, as higher pricing boosted global sales. Shares gained almost 6%.
Defense contractors General Dynamics (GD, Fortune 500) and Northrop Grumman (NOC, Fortune 500) both reported higher quarterly earnings that topped estimates. General Dynamics reported weaker revenue that missed forecasts. Northrop Grumman reported higher revenue that topped estimates and also lifted its 2010 profit outlook. Both company's stocks posted slim gains.
AOL (AOL) reported quarterly earnings and revenues that fell from a year ago and missed expectations, as the company contended with dwindling sales and a weakening subscriber base. Shares fell 14.5%.
With 48% of the S&P 500 having reported results, earnings are on track to have grown 52% from a year earlier and revenues 12%, according to the latest info from tracker Thomson Reuters.
Among other movers, financial shares advanced, with JPMorgan Chase (JPM, Fortune 500), Bank of America (BAC, Fortune 500) and SunTrust Banks (STI, Fortune 500) among the issues boosting the KBW Bank index. A rally in commodities gave a lift to oil, metal and mining shares.
World markets: In overseas trading, European markets were lower, with France's CAC 40 down 1.5%, Germany's DAX down 1.2% and London's FTSE down 0.3%.
Asian markets fell, with Hong Kong's Hang Seng index down 1.5% and Japan's Nikkei down 2.6%.
The dollar and commodities: The dollar gained versus the euro and the yen.
U.S. light crude oil for June delivery rose 78 cents to settle at $83.22 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $9.60 to settle at $1,171.80 per ounce.
Bonds: Treasury prices fell, raising the yield on the 10-year note to 3.77% from 3.69% Tuesday. Prices had rallied Tuesday as stocks slumped, with investors seeking safety in government debt. Treasury prices and yields move in opposite directions.
Dow plunges 213 points, breaks 11K
NEW YORK (CNNMoney.com) -- Stocks fell Tuesday after Standard & Poors cut Greece's debt rating to junk and lowered Portugal's debt rating, raising fears that a euro zone debt crisis could slow the global economic recovery.
The Dow Jones industrial average (INDU) tumbled 213 points, or 1.9%, closing below 11,000, a key psychological level. The Dow ended the previous session at its highest point in 19 months.
The slide was the Dow's biggest one-day point drop since July 15, 2009, when it lost 257 points.
The S&P 500 index (SPX) fell 28 points, or 2.3%, closing below 1,200, a psychological level traders look at. The Nasdaq composite (COMP) slid 51 points, or 2%.
Stocks were flat to lower in the morning as Goldman Sachs sought to defend itself on Capitol Hill against allegations it profited from the housing market collapse. But news that ratings agency Standard & Poor's had cut Greece and Portugal's debt ratings overshadowed everything else, giving investors a reason to retreat on the back of an 8-week advance.
"We're seeing the fear factor kick in about Greece and Portugal," said Peter Cardillo, chief market economist at Avalon Partners. "That's rattling the market."
He said that fear was also reflected in the so-called flight to quality as investors poured money into bonds and the euro fell to a new low for the year.
That was reflected by a jump in the CBOE Volatility index, Wall Street's so-called "fear gauge." It spiked 24%, hitting the highest point since February. Typically a surge in the VIX corresponds with a selloff in stocks.
Greece: Standard & Poor's cut its ratings on Greece's long-term debt status to "BB+" with a negative outlook from "BBB+." The double-B plus rating is considered to be speculative or "junk," and reflects the ratings agency's concern about Greece's long-term ability to get out from underneath the its current fiscal crisis. S&P cut Greece's short-term debt even lower.
S&P also cut Portugal's long-term debt ratings by two notches and the short-term rating by one notch, but did not lower the debt to junk status.
The cost of insuring both Greece and Portugal's debt rose to record highs following the news.
Worries about the fiscal health of Greece and the other so-called PIIGS have weighed on the stock market on and off since the start of the year as investors worry the weakness will destabilize the euro and hurt global growth. The PIIGS are Portugal, Ireland, Italy, Greece and Spain.
However, Cardillo said that markets were also ripe for a pullback after moving higher for the last few months.
Rally loses steam: The Dow has ended higher for eight straight weeks, its best winning streak since January 2004. The Nasdaq has also been on the rise for 8 weeks, while the S&P 500 rose for 7 of the last 8 weeks.
Prior to Monday's selloff, the Dow and S&P 500 were just shy of 19-month highs, while the Nasdaq was at the highest point in nearly two years.
A better-than-expected reading on consumer confidence, a weaker-than-expected rise in a key measure of the housing market and anticipation at the start of the Federal Reserve's two-day policy setting meeting were all in play. Better-than-expected results from Texas Instruments, DuPont and 3M provided some support.
Stocks were barely higher Monday in a quiet session at the start of a busy week on Wall Street. In addition to the housing and consumer confidence reports, a revised reading on first-quarter GDP growth is due later in the week, as well as quarterly results from roughly one-third of the companies in the S&P 500.
Goldman: CEO Lloyd Blankfein and other executives from Goldman Sachs were answering lawmakers' questions as part of a Senate hearing on the role investment banks played in the financial market meltdown in 2008.
Blankfein, in prepared testimony, denied that the company sought to profit from the housing market collapse, an allegation lawmakers have made recently.
Fabrice Tourre, the trader charged in the Securities and Exchange Commission's fraud case against Goldman Sachs defended himself, saying he categorically denied the SEC's allegations.
On the move: Financials, energy and technology, the three biggest movers of the market in terms of sectors, all fell.
Goldman Sachs (GS, Fortune 500) gained 1%, but other bank shares plunged, with the KBW (BKX) Bank index losing over 3%. Sliding oil prices dragged on energy stocks, including Dow components Exxon Mobil (XOM, Fortune 500) and Chevron (CVX, Fortune 500).
Declines were broad based, with 28 of 30 Dow components falling. In addition to the Dow's financial and energy components, other losers included heavily weighted tech stocks Hewlett-Packard (HPQ, Fortune 500) and IBM (IBM, Fortune 500), aerospace and defense names Boeing (BA, Fortune 500) and United Technologies (UTX, Fortune 500) and heavy-machinery maker Caterpillar (CAT, Fortune 500).
Caterpillar shares rallied Monday after the company reported better-than-expected earnings and boosted its 2010 profit forecast.
Market breadth was negative. On the New York Stock Exchange, losers beat winners five to one on volume of 1.68 billion shares. On the Nasdaq, decliners topped advancers by over four to one on volume of 2.77 billion shares.
Economy: On the economic front, investors took in reports on home prices and consumer confidence.
The Case-Shiller 20 city home price index rose 0.6% in February versus a year earlier, the first rise on an annual basis in three years. However, economists surveyed by Briefing.com were expecting a bigger gain of 1.1%. Prices fell 0.7% in January.
Consumer confidence surged in April, according to the Conference Board, with its index rising to 57.9 from 52.3 in March. Economists thought it would rise to 53.5.
Debt commission: Policymakers need to put a plan in place to get spending in line with revenue so as to close the unsustainable fiscal gap threatening the recovery, Federal Reserve Chairman Ben Bernanke said Tuesday.
Bernanke spoke at the first meeting of President Obama's bipartisan debt commission.
Federal Reserve: The central bank policymakers were meeting Tuesday and Wednesday with an announcement on interest rates and the outlook due Wednesday afternoon.
The Ben Bernanke-led Fed is expected to hold interest rates steady at historic lows near zero. However, what the bankers say in the statement about the outlook for the economy and interest rates will be scrutinized.
Investors will also pay attention to whether the Fed provides more details about how it plans to continue unwinding programs put in place to prop up the economy during the financial crisis.
Company news: Ford Motor (F, Fortune 500) reported a better-than-expected first-quarter profit that rose from a year earlier. But shares slumped after the company's revenue growth was shy of expectations.
After the market closed Monday, Texas Instruments (TXN, Fortune 500) reported quarterly sales and earnings that topped estimates and rose from a year earlier. Shares were slightly lower.
3M (MMM, Fortune 500) reported higher quarterly sales and earnings that topped estimates thanks largely to strong international sales. The Dow component, considered to be a good barometer of the economy because of the breadth of its business, also boosted its 2010 profit forecast.
However, 3M said growth in Asia and Latin America are the drivers of that forecast and that the U.S. economic recovery will be patchy. Shares gained 0.6%.
Fellow Dow component DuPont (DD, Fortune 500) also reported higher quarterly sales and earnings that topped expectations, and lifted its 2010 profit forecast. But investors took a sell-the-news response and sent shares nearly 4% lower.
With 40% of the S&P 500 having reported, earnings are on track to have grown 50% from a year earlier and revenues 11%, according to the latest info from Thomson Reuters.
Roughly 82% of earnings have topped estimates. Should that figure hold up, it would be the highest percentage of companies topping earnings in Thomson's history.
The dollar and commodities: The dollar gained versus the euro and fell against the yen.
U.S. light crude oil for June delivery fell $1.76 to settle at $82.44 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $8.20 to settle at $1,162.20 per ounce.
World markets: In overseas trading, European markets slumped, with London's FTSE down 2.6%, France's CAC 40 down 3.8% and Germany's DAX down 2.7%. Asian markets were mixed, with Hong Kong's Hang Seng index down 1.5% and Japan's Nikkei up 0.4%.
Bonds: Treasury prices rallied, lowering the yield on the 10-year note to 3.70% from 3.82% late Monday. Treasury prices and yields move in opposite directions.
Stocks sputter after hitting '10 highs
By Alexandra Twin, senior writerApril 26, 2010: 5:43 PM ETNEW YORK (CNNMoney.com) -- The Dow managed to eke out a fresh 19-month high Monday on Caterpillar's strong earnings, but a selloff in financials hit the broader market at the start of a busy week on Wall Street.
The Dow Jones industrial average (INDU) ended just above unchanged, with Caterpillar (CAT, Fortune 500) and a few other stocks countering the weakness in financials.
The S&P 500 index (SPX) lost 5 points, or 0.4%, after ending Friday's session at a 19-month high.
The Nasdaq composite (COMP) lost 7 points, or 0.3%, after ending the previous session at the highest point in almost two years.
Stocks seesawed through the session as investors welcomed Caterpillar's earnings and forecast but showed reluctance at the start of a busy week. Financial concerns continued to drag on the market.
Stocks gained Friday after a surprisingly strong new-home sales report, with the Dow, Nasdaq and S&P 500 all gaining on the week as well. The Dow has now gained eight weeks in a row, the longest wining streak since January 2004.
Although there are no economic reports due Monday, the pace picks up later in the week. The Fed's two-day policy meeting concludes Wednesday, with a statement due in the afternoon, while reports on jobless claims, consumer confidence and gross domestic product are also on tap.
While the trend for the market remains up, there are still headwinds, including any fallout from Goldman Sachs' fraud charge, the debate over financial reform and Greece's lingering debt issues.
Financials: Goldman Sachs (GS, Fortune 500) shares fell ahead of a Senate hearing Tuesday aimed at investigating the role investment banks played in the 2008 financial crisis. Goldman CEO Lloyd Blankfein, Fabrice Tourre, the only Goldman employee named in the SEC's fraud charge, and other Goldman employees will be among those testifying.
E-mails released Monday showed that Tourre -- who helped create a bond deal tied to subprime mortgages that regulators say defrauded investors -- knew the complex deals were bunk.
The federal government said it will sell up to 1.5 billion shares in Citigroup (C, Fortune 500), in its latest move toward withdrawing some of the support for big banks it put in place during the height of the financial crisis. The sales are equivalent to about one-fifth of the government's ownership stake and would reduce its holdings to roughly 22% of the company.
Shares plunged 5%.
Other bank shares fell too, dragging the KBW Bank (BKX) sector index down 3%.
Quarterly results: Heavy-machinery maker Caterpillar (CAT, Fortune 500) reported higher quarterly earnings that beat estimates on weaker revenue that missed estimates. The company said that the economic outlook is improving, but that it is cutting its outlook for housing starts by 20% due to the weak labor market. The Dow component also boosted its 2010 profit forecast. Shares gained 4.2%.
Whirlpool (WHR, Fortune 500) reported higher quarterly sales and earnings that beat estimates due to stronger sales of its appliances both domestically and abroad. The company also reported a stronger 2008 profit. Shares gained 14%.
With roughly 34% of the S&P 500 having reported results, earnings are currently on track to have risen 50% from a year ago, while revenues are on track to have risen 11%, according to tracker Thomson Reuters.
So far, about 83% of earnings and 81% of revenues have topped estimates.
Corporate news: Hertz (HTZ, Fortune 500) said it will buy Dollar Thrifty in a $1.2 billion cash and stock deal that combines the two car rental companies.
Market breadth was negative. On the New York Stock Exchange, losers beat winners by eight to seven on volume of 1.23 billion shares. On the Nasdaq, decliners topped advancers by a narrow margin on volume of 2.38 billion shares.
The dollar and commodities: The dollar gained versus the euro and yen.
U.S. light crude oil for June delivery fell 92 cents to settle at $84.20 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose 30 cents to settle at $1,153.70 per ounce.
World markets: In overseas trading, European markets rallied, with London's FTSE up 0.5%, France's CAC 40 up 1.2% and Germany's DAX up 1.2%. Asian markets fell, with Hong Kong's Hang Seng index up 1.6% and Japan's Nikkei up 2.3%.
Bonds: Treasury prices were little changed, with the yield on the 10-year note at 3.82%, unchanged from late Friday. Treasury prices and yields move in opposite directions.
Friday: 23 APRIL 2010 TGiF
befOre lUnch: prOfit TAKE
after lUnch: chEEry PiCK
4:30PM: FRiDAY WiNDOW DRESSING
BEWARE AWARE SCARE CARE