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10B Daily News – Saturday, June 11, 2011 Furniture DEPOT 235 So. Main St., Red Bluff 527-1657 MON.-FRI. 9:00-6:00 SAT. 9:00-5:00 • SUN. 11:00-5:00 Fears that the global economic recovery has stalled pushed the Dow Jones industrial average below 12,000 for the first time since March and drove the stock market lower for the sixth straight week. Friday’s drop extended the longest weekly losing streak for stocks since the fall of 2002. Weak economic news has dampened hopes for a steady recovery, sending stocks down. Traders worry that weaker hiring, sluggish industrial output, and a moribund housing market are reversing a bull market that has lifted the Dow 20 percent over the past year. If the indexes continue their slide for another week, it would be the first time in 10 years that the market suffered a seven-week stretch of losses. The last such stretch began in May 2001 as the dot-com bubble deflated. The Dow fell 172.45 points, or 1.4 percent, to close Friday at 11,951.91. The S&P 500 index fell 18.02, or 1.4 percent, to 1,270.98. The Nasdaq dropped 41.14, or 1.5 percent, to 2,643.73. The Nasdaq is now down slightly for the year, as is the Rus- sell 2000 index of small company stocks. The Dow is still up 3.2 per- cent for 2011 and the S&P 1.1 per- cent. Some investors said the recent pullback may not last. Jack Ablin, chief investment officer at Harris Private Bank, said strong corporate earnings and widespread economic growth, however slow, should lead to more gains in the coming months. ‘‘Anyone selling shares today has to be pricing in a recession,’’ he said. Most economists expect slow growth but not a recession. Shares had bounced back Thursday, breaking six straight days of losses, after U.S. exports unexpectedly hit a record in April. By Friday morning, those gains had evaporated. The losses were widespread, with declines across all 10 of the S&P 500’s industry groups. Ablin suggested that Friday’s losses were partially driven by the Federal Reserve’s unloading of millions in risky mortgage bonds onto the market. As big banks buy those securities, they dump assets such as stocks and high-yield cor- porate bonds. Karyn Cavanaugh, vice presi- dent and market strategist with ING Investment Management, advised investors to stick out the market’s recent turbulence. ‘‘The market doesn’t go up indefinitely; it’s not a straight line and it does get choppy at times,’’ she said. Cavanaugh said seven straight quarters of stronger-than- expected corporate earnings are a clear signal that the bull market will continue. Aside from a promising report on higher exports Thursday, investors had little reason to cheer this week. Citigroup Inc., Bank of America Corp. and other big banks led stocks lower Monday amid expectations that banks would have to set aside more cash to cover potential losses. Federal Reserve Chairman Ben Bernanke gave a speech Tuesday in which he said the economy’s greatest troubles — high oil prices and supply chain disruptions from Japan — would soon pass. Bernanke offered no hint of fur- ther help from the Fed and the Recliner VAIL recliner* now only $329 200 save $ Blowout SALE Quantities limited-while supplies last! now only save $ LAWRENCE leather recliner* $649 300 Dow falls below 12K; stocks drop 6 weeks straight Wall Street stock market dropped as he spoke. The next day, stocks slipped again after a Federal Reserve report showed the economy slowed in New York, Chicago and other major metropolitan areas. The yield on the benchmark 10-year Treasury note fell as investors put money into low-risk investments. The yield fell to 2.97 percent Friday afternoon, after trading above 3 percent Thursday as the stock market rallied. Bond yields fall and their prices rise when demand for them increases. In corporate news, shares of solar chip maker MEMC Elec- tronic Materials Inc. fell 3.5 per- cent after an analyst downgraded the stock, saying prices for solar wafers are falling rapidly because of overproduction in China. Goodyear Tire fell 6.6 percent, the most in the S&P 500, after the company agreed to sell its Asian wire business to South Korea’s Hyosung Corp. for $50 million. Analysts with J.P. Morgan Chase & Co. said they expect ‘‘signifi- cantly weaker’’ demand for replacement tires. Four stocks fell for every one that rose on the New York Stock Exchange. Consolidated trading volume was 3.9 billion shares. Data breach at Citigroup strikes at financial security NEW YORK (AP) — Citigroup’s disclosure that the names, account num- bers and email addresses of 200,000 of its credit card customers were stolen strikes at the core of mod- ern-day financial life — the ways people buy groceries and pay the power bill. It’s only the latest major data breach. In just the past three months, hackers have penetrated 100 million Sony PlayStation accounts, Check Out our the networks of Lockheed Martin and the customer email databases of a com- pany that does marketing for Best Buy and Target. But half of all Ameri- cans, 154 million people, have a credit card. The Citi attack is a reminder that the technology used to protect their information was built by humans, security analyst Jacob Jegher notes — and it can be breached by humans, too. ‘‘People rely on the safe- ty net of a bank to take care of their information,’’ says Jegher, a senior analyst at Celent, a research firm that focuses on information technology in the financial industry. ‘‘Unfortunately, that net has a lot of holes.’’ Citi says all of the cus- tomers whose information was stolen will receive a notification letter, and most of them will get a new card, although it has declined to online ‘Yard Sale Map’ Updated Thursday afternoon – for weekend Yard Sales! Click on locations for exact addresses and driving directions! ʻ ʼ can be easily accessed from our top menu at www.redbluffdailynews.com . Mouse over the red ʻ ʼ tab and scroll down to ʻ ʼ and click. say exactly how many. The bank says its enforcement division and authorities are investigating. The victims will have to endure the hassle of updat- ing the credit card numbers on any number of online accounts, but they probably won’t lose any money. For one thing, federal laws pro- tect credit card customers from fraud beyond $50, and in most cases, the bank that issues the card will cover up to that amount. And the Citi hackers didn’t get to the three-digit numbers that appear on the backs of credit cards, a security feature known as the CVV code. That means $ $ $ $ $ $ $ $ $ REWARD OFFERED John Owens, Tehama County Cattlemen’s Association, California Cattlemen’s Association and Lee Loverin are offering $12,000.00 for information leading to the arrest of the person or persons responsible for the theft of our cattle. Please contact us at 530-520-9399 or 530-527-6332 Tip-line 1-800-671-4327 ANONYMITY GUARANTEED the hackers, or whoever they might sell the informa- tion to, would have trouble making direct charges. The danger is that some- one might use the informa- tion that was compromised to mount a sophisticated ‘‘phishing’’ attack, in which criminals send out convinc- ingly designed emails pre- tending to be from the bank and gain access to account information. The relatively small number of accounts taken from Citi, which has 21 million credit card cus- tomers in North America, suggests the hackers used spyware that captured the data of customers who logged in to its website to conduct online banking, one expert says. ‘‘The thing in the Citi case which is good is they detected it quickly and shut it down,’’ says Dave Jevans, chairman of security firm IronKey Inc. and chairman of an anti-phishing non- profit group made up of 2,000 government agencies and companies, including Citi. ‘‘They’ve got systems that are going to look at the data leaving the network and are able to see that somebody’s sending infor- mation out,’’ he adds. Banks are ahead of most other industries in this regard, he explains, and other businesses will have to catch up. CVV codes can’t be stored with a simple mag- netic swipe of a credit card, and the businesses that process payments are not allowed to store the codes after a transaction, so they provide another defense against fraud. NEW Ya Ya rd Sale Map Classified rd Sale Map