Stocks Slide As Eurozone Weighs ... Again

Includes: DIA, QQQ, SPY
by: Midnight Trader
  • Dow Jones Industrial Average down 138.12 (-1.09%) to 12,502.66
  • S&P 500 down 21.30 (-1.60%) to 1,313.72
  • Nasdaq Composite Index down 56.26 (-1.95%) to 2,836.16


  • Hang Seng Index down 0.51%
  • Shanghai China Composite Index down 1.63%
  • FTSE 100 Index down 1.14%

Stocks finished lower Monday with worries over the future of the eurozone continuing to suppress trader moods. Most sectors in the S&P 500 ended the session lower, led by falls for energy and financial stocks. The declines overshadowed improving U.S. data, with sales of new homes during May beating estimates and a measure of manufacturing activity in Texas and surrounding areas reversing a negative reading last month as new orders rose. Commodities were mixed with crude oil settling lower while gold rallied.

European debt worries hovered over the global markets today with Cyprus formally requesting a bailout from the European Union for its struggling banks, becoming the fifth eurozone country to request a rescue. Earlier today, Greece's new finance minister resigned because of ill health, likely hurting the new government's efforts to soften the terms of an international bailout and casting more doubt that a European summit later this week will be able to accomplish much to resolve regional problems.

Sales of new single-family homes rose 7.6% in May as low interest rates, warmer weather and attractive prices all contributed to lift sales to their best level in more than two years, the U.S. Commerce Department reported Monday. Purchases of newly built homes climbed to an annualized 369,000 rate last month from a 343,000 pace the prior month. Experts surveyed by MarketWatch had expected new-home sales to rise to an annual rate of 348,000 last month.

Also, the Dallas Fed business activity index surged to a 5.8 reading this month, reversing a negative 5.1 reading in May and easily surpassing the consensus estimate for a 0.0 reading. New orders noticeably increased, climbing from minus 0.6 last month to 7.9 this month.

In late company news, Microsoft Corp. (NASDAQ:MSFT) agreed to buy enterprise social networking company Yammer for $1.2 billion in cash, the two companies announced Monday. Yammer has more than 5 million corporate users, including employees from 85% of the Fortune 500, the company said. MSFT was down about 3% after the deal was announced.

Commodities were mixed. Crude oil for August delivery slid 55 cents to $79.18 a barrel while July natural gas rose 6 cents to $2.69 per 1 million BTU. August gold rose $21.20 to $1588 an ounce, July silver rose 82 cents to $27.50 an ounce while July copper rose 1 cent to $3.32.


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