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8B Daily News – Wednesday, March 20, 2013 Wall Street holds its own after Cyprus 'no' vote NEW YORK (AP) — The latest twists in Europe's debt drama weighed down the stock market Tuesday, offsetting more good news on the U.S. housing market. The Dow Jones industrial average managed a gain of just four points, while other indexes closed slightly lower. Investors were focused on Cyprus, where the Mediterranean country's lawmakers voted against a proposed bailout plan for banks that would have called for raiding the savings accounts of ordinary citizens, setting a new precedent in Europe's ongoing debt crisis. The plan was rejected — with zero votes in favor — even after being changed to lessen the burden on savers with lower balances. The vote leaves the Cyprus's bailout from international lenders in question, and without external funds the country's banks could face collapse and the government could wind up having to leave Europe's joint currency. Many investors are betting the worst-case scenarios won't come to pass, however, especially since Europe's Wall Street powerful central banker, European Central Bank President Mario Draghi, has vowed to take any steps necessary to preserve the 17nation currency union. ''The concern in the market is that they could default or they could be forced out of the euro zone and that would create a precedent,'' said Alec Young, a global equity strategist with S&P Capital IQ. ''The selling, though, is fairly contained, and that tells you most people think there will be some kind of compromise reached.'' The Dow and other U.S. indexes started higher following a report of a surprisingly large increase in new home construction in February. The index gained as much as 62 points in morning trading. It turned lower at midday as Cyprus' parliament began debating the contentious plan demanded by the country's lenders to seize as much as 10 percent of the funds in savings accounts. The market steadied in the afternoon after the vote Unhassle your Daily News Carrier-Delivered Subscription! Convert to EZ-Pay Every 13 Weeks Automatic charge of $ 00 24 to your Debit or Credit Card! occurred and a move to delay it was turned down. The euro zone's debt crisis still has the power to captivate stock global markets, but investors worry about it less these days after Draghi pledged last year to do ''whatever it takes'' to preserve the euro. The Dow's biggest wobble this year came Feb. 26, when it lost 1.6 percent after the results of Italian elections left the country in political turmoil, endangering crucial economic reforms. Even that was a less dramatic response than sell-offs a year ago when borrowing rates spiked for Spain and Italy as investors lost confidence in the ability of those countries to service their debt. On Tuesday the Dow rose 3.76 points, or 0.03 percent, to close at 14,455.82. Other major market indexes fell slightly. The Standard & Poor's 500 fell 3.76 points, or 0.2 percent, to 1,548.34. The Nasdaq composite fell 8.50 points, or 0.3 percent, to 3,229.10. Markets declined Monday, with the Dow giving up 62 points, following a week- end of drama as Cyprus' leaders acceded to the demands from European lenders to seize depositors' funds, which were met with outrage. While the reaction Tuesday was more muted, investors were still watching closely to see if the situation takes a turn for the worse. ''The situation in Cyprus is keeping everyone glued to their TVs,'' Joseph Tanious, global market strategist at J.P. Morgan Funds, said before the vote. Tanious says investors shouldn't immediately overreact to the news coming out of Europe, but instead take a step back and remember Draghi's pledge. ''Do not underestimate the power of the ECB,'' said Tanious. U.S. markets have been on a roll this year. The Dow is up 10.3 percent and broke through its previous all-time high on March 5, driven by strength in housing and a pickup in hiring. Strong company earnings and continuing stimulus from the Federal Reserve is also helping boost demand for stocks. The S&P 500 is up 8.6 percent in 2013 and is 1.1 percent away from its record THE GREAT RED BLUFF HEIST KWIK KUTS Will be giving out thousands of $$$ in FREE "Loot" from local businesses. 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On Wednesday, it will issue a policy statement and update its economic forecasts. Economists and investors don't expect the Fed to let up in its drive to keep stimulating the economy by keeping interest rates at historic lows. ''The Fed has clearly been a big push in this market, no question,'' said Maury Fertig, chief investment officer at Relative Value Partners. ''What the Fed has done has really helped the market recover....they're not going to pull away prematurely.'' Investors are increasingly putting more money to stocks, according to a Bank of America Merrill Lynch survey, published Tuesday. The survey of fund managers showed that 57 percent of investors favored allocating money to stocks, the highest percentage in more than two years. The yield on the 10-year Treasury note, which moves inversely to its price, fell to 1.91 percent from 1.96 percent. That's a signal investors were moving money into low-risk assets. Among other stocks making big moves: — Lululemon fell $1.82, or 2.8 percent, to $64.08 after the company yanked its popular black yoga pants from store shelves after it found that the sheer material used was too revealing. 1152 SQ.FT. 0.32 AC $75,000 Prop Code 4729 768 SQ.FT. 0.127 AC $99,000 Prop Code 4379 384 SQ.FT. 1.6 AC $109,000 Prop Code 4389 1078 SQ.FT. 0.22 AC $109,500 Prop Code 4559 1299 SQ.FT. 1.84 AC $119,000 Prop Code 4179 1386 SQ.FT. 0.17 AC $129,900 Prop Code 4939 1478 SQ.FT. 0 AC $145,000 Prop Code 4849 1312 SQ.FT. 0 AC $135,000 Prop Code 4719 1080 SQ.FT. 0.149 AC $148,000 Prop Code 4029 1356 SQ.FT. 0.37 AC $149,000 Prop Code 4109 1592 SQ.FT. 0.48 AC $167,000 Prop Code 4339 1688 SQ.FT. 8.01 AC $169,000 Prop Code 4909 1640 SQ.FT. 0.01 AC $169,900 Prop Code 4269 3000 SQ.FT. 0.29 AC $174,900 Prop Code 4439 2124 SQ.FT. 1 AC $179,000 Prop Code 4829 1701 SQ.FT. 10.56 AC $189,000 Prop Code 4079 1560 SQ.FT. 0.74 AC $189,900 Prop Code 4759 1701 SQ.FT. 10.51 AC $192,900 Prop Code 4099 See All Tehama County Listings at www.redbluffcoldwellbanker.com TEHAMA COUNTY REAL ESTATE TEAM • OPEN 7 DAYS A WEEK 2013-14 Kindergarten Registration for Gerber School will be held on Thursday, March 21st from 8:30AM - 2:00PM Please call 385-1041 for details Announcing Practice Closure Michele Martin, DPM Office Closing February 28, 2013 527-2523 Medical Records Request P.O. 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