Issue link: https://www.epageflip.net/i/11706
8B – Daily News – Tuesday, June 8, 2010 Traders gave in to another case of last-hour anxiety Monday and drove stocks to their lowest level in seven months. The Dow Jones industri- al average, down just 42 points at 3:15 p.m., was down 115, or 1.2 percent, by the close 45 minutes later. That extended the Dow’s sharp drop from Fri- day, when it lost 323 in response to a disappointing May jobs report. Broader indexes had steeper percent- age drops than the Dow on Monday. The technology- focused Nasdaq composite index fell 2 percent. Trea- sury prices rose as investors again went in search of safe investments. There was no obvious catalyst for Monday’s late slide, although traders were again preoccupied with Europe’s economic prob- lems. Traders know that Europe’s business day begins before trading opens in the U.S., and they’d rather sell then wake up to an unpleasant surprise. The Late slide: Stocks fall in last hour, Dow down 115 Wall Street NEW YORK (AP) — last-hour selling, which fol- lowed a similar move Fri- day, also recalled the 2008 financial crisis, when traders decided the best strategy was to dump stocks just before the close. Monday’s trading also showed how the market’s own dynamics can trigger late selling. Shortly after 3 p.m., the Standard & Poor’s 500 index fell below 1,056.74, what had been its low close for the year that it reached Feb. 8. That psy- chological blow encouraged many traders to sell, and as prices came down, comput- er ‘‘sell’’ programs kicked in, leading to more selling. Tech stocks, seen as some of the most vulnerable when the economy and the market are troubled, suf- fered some of the biggest losses. That explains the drop in the Nasdaq index. But some stocks fell on their own bad news. Google Inc. was one of the big tech losers, falling 2.7 percent after Connecticut Attorney General Richard Blumen- thal called on the company to ‘‘come clean’’ on its col- lection of personal and busi- ness data in the state for its mapping service. Financial stocks fell after a commission examining the financial crisis issued a subpoena to Goldman Sachs Group Inc. Goldman fell 2.5 percent. And Bank of America Corp. lost 3.4 percent after news came out that the bank would pay $108 million to settle feder- al charges that its Country- wide Financial Corp. divi- sion had collected onerous fees from homeowners nearing foreclosure. Utility and gold stocks were among the few gain- ers, a sign that traders want investments considered safe in weak economies. Utility company FirstEnergy Corp. rose 2.7 percent, while Bar- rick Gold Corp. climbed 4.1 percent. ‘‘The market is playing defense and waiting for some resolution,’’ said Mike Shea, managing partner at MATTRESS CLOSEOUTS Up to Direct Access Partners LLC in New York, pointing to the rise in gold stocks. Some traders say the market isn’t likely to stabi- lize until there is a better sense about how European countries will hold up under heavy cost-cutting that could hamper their eco- nomic growth. Traders again looked to the euro for guidance. The 16-nation currency hit another four- year low. It fell as low as $1.1878 before rising to $1.1926. A drop in the cur- rency is seen as a sign of flagging confidence in Europe’s ability to contain its debt without falling back into recession. The Dow fell 115.48, or 1.2 percent, to 9,816.49. The Dow has fallen 4.3 per- cent in the past two days, its worst back-to-back slide since early May. The S&P 500 index fell 14.41, or 1.4 percent, to 1,050.47. It was the lowest close for the Dow and the S&P 500 index since Nov. 4. The Nasdaq composite M-F 6am-2pm * Now on Facebook riskier investments. So many commodities have suffered as the stock market has fallen. Jim Thorne, chief invest- We have Olive Oil! Lucero & Pacific Sun Milling Wheat into Flour Using Organic & Local Ingredients www.rossersbakery.com 50%-60% BOOK BARN Used Books 529-1687 * Summer Hours: 6am-2pm Furniture Depot Sunday Buffet Special $ 9.99 Expires 6-30-10 COUPON 235 So. Main St., Red Bluff 527-1657 MON.-THURS. 9:00-6:00 • FRI. 9:00-6:00 • SAT. 9:00-5:00 • SUN. 11:00-5:00 China Buffet CHINESE RESTAURANT Open 7 Days A Week China Buffet Happy Hours Monday Lunch $ All Day $6.99 Tuesday - Saturday 6.99 Dinner $ 9.99 343 S. Main St. Red Bluff 530-529-5888 (No Checks) Tues-Fri 10-5 Sat 10-2 Serving Tehama County since 1994 619 Oak St., Red Bluff (530) 528-2665 Hoyt-Cole Chapel of the Flowers Ownership Under New 10 % off COUPON on dinner only (everyday) Expires 6-30-10 COUPON owns and operates the only on-site crematory in Tehama County. • Your loved one NEVER leaves our care. • For your peace of mind, we personally perform cremations on site. • No hidden charges. If cremation is your choice, there really is no other choice for you than the cremation experts at Hoyt-Cole Chapel of the Flowers. Contact us today so we may answer your questions. Hoyt-Cole Chapel of the Flowers Funerals • Cremations • Prearrangements 816 Walnut Street | Red Bluff (530) 527-1174 www.chapeloftheflowers.net 446 Antelope Blvd. #38 Left side of Antelope Holiday Mkt index fell 45.27, or 2 per- cent, to 2,173.90. The Nas- daq stands at its lowest level since Feb. 10. Traders’ worries, mostly about Europe, have pound- ed stocks since major index- es hit 2010 highs in late April. The Dow is down 12.4 percent since reaching 11,205 on April 26. The drop of more than 10 per- cent from the peak indicates a ‘‘correction.’’ It’s the first major drop since indexes bounced off 12-year lows in March last year. The Dow is up 49.9 percent from its March low. Treasury prices extended their gains after surging Fri- day on concern about the employment numbers. The yield on the benchmark 10- year Treasury note, which moves opposite its price, fell to 3.15 percent from 3.21 percent late Friday. The dollar, which has a reputation for safety, rose against most other curren- cies. Gold rose $23.10 to $1,240.80 an ounce. Crude oil fell 7 cents to $71.44 per barrel on the New York Mercantile Exchange. Traders see commodities, like stocks, as Is cremation your choice? ment officer for equities at MTB Investment Advisers in Baltimore, said traders are afraid they’re seeing a repeat of the financial crisis of 2008. But Thorne said that although the jobs report Friday was disappointing, most numbers have pointed to an economy that is rebounding. The govern- ment said Friday that pri- vate employers hired just 41,000 workers in May, down from 218,000 in April and the lowest number since January. ‘‘Right now the market is getting to the point where it’s uninvestable. Funda- mentals don’t matter,’’ Thorne said. ‘‘This is a peri- od that will be looked back upon six to eight months from now as a wonderful investing opportunity.’’ Among bank stocks, Goldman fell $3.57, or 2.5 percent, to $138.68, while Bank of America fell 52 cents, or 3.4 percent, to $14.83. FirstEnergy rose 94 cents, or 2.7 percent, to $36.16, while Barrick Gold rose $1.70, or 4.1 percent, to $43.12. Google fell $13.20, or 2.7 percent, to $485.52. Nearly three stocks fell for every one that rose on the New York Stock Exchange, where consoli- dated volume fell to 5.6 bil- lion shares from 6.3 billion Friday. The Russell 2000 index of smaller companies fell 15.48, or 2.4 percent, to 618.49. Nice Mens and Womens Watches 35% off the Exchange Gold 423 WALNUT ST, RED BLUFF 528-8000 Rosser’s Bakery & Specialty Foods