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8A Daily News – Tuesday, July 12, 2011 NEW YORK (AP) — July doesn’t look so promis- ing anymore. The European debt crisis appears to be widening, with concerns about gov- ernment debt defaults spreading beyond Greece to much larger countries like Italy and Spain. If that hap- pens companies that do business internationally could see their revenue and profits decline as European countries and companies curtail purchases. What’s more, a widespread finan- cial crisis could cause a credit crunch in Europe and elsewhere. The concerns sent stocks down. After a rally that sent markets up sharply the last two weeks of June, the Standard & Poor’s 500 index dropped 24.31 points, or 1.8 percent, to 1,319.49 on Monday. The Dow Jones industri- al average had its biggest percentage drop in nearly a month. It fell 151.44 points, or 1.2 percent, to 12,505.76. And after closing one point off its 2011 high late last week, the Nasdaq compos- ite fell 57.19, or 2.0 percent to 2,802.62. Italy and Spain, Europe’s third and fourth largest economies, have seen bond yields rise sharply. It’s the latest sign that investors are less willing to hold the debt of those countries. Italy’s largest banks, UniCredit Stocks sink on fresh fears about global economy — investment strategist, Ralph Fogel SpA and Intesa, fell sharply on European exchanges. Some investors believe sev- eral of Italy and Spain’s financial institutions might not pass an upcoming stress-test for European banks. ‘‘What the European Union is trying to do is keep the problem contained at a sovereign level and not have the infection spread to the banking system,’’ said Jack Ablin, chief investment offi- cer at Harris Private Bank. ‘‘To see a bank drop that much that fast suggests there may be a breach.’’ That has led to fears in Europe and elsewhere that the aid from international lenders may not be enough to stop a broad deterioration of the European economy. The S&P fell broadly, led by financial companies. Financial stocks in the index fell 2.8 percent as bank stocks sank. Investment manager Janus Capital Group fared worst, falling 6.8 percent to $9.16. Citi- group Inc. led banks down, declining 5.3 percent to $39.79. If Europe’s debt cri- sis continues to spread, bank lending could seize up. Banks are also expected to report weak earnings beginning later this week. Of the 500 companies in the S&P index, 492 fell. For Your Service Thank You 40% OFF All Jewelry For Active Military Families Expires July 31, 2011 Monday - Friday 10-5:30 • Saturday 11-4 413 Walnut Street, Red Bluff • 530 528-8000 THE GOLD EXCHANGE Better Built Windows REMEMBER US FOR ALL YOUR DOOR & MOLDING NEEDS. We’re not just for contractors 1040 B Monroe St., Red Bluff (530) 527-7962 LIC#659256 Wall Street ‘‘Markets don’t like when they don’t know what’s going on. They don’t appreciate politics.’’ The euro fell against the dollar and U.S. government bond prices rose. The euro fell below $1.40 for the first time since May 23 and hit a record low against the Swiss franc. The yield on the 10-year Treasury note fell to 2.95 percent from 3.02 percent late Friday. Bond yields fall when their prices rise. Markets seemed to be recovering during the last half of June. The last week of the month, the Dow had its best week in two years after several positive reports on manufacturing and con- sumer spending. All three major indexes were close to their previous highs for the year, reached April 29. But the run-up just gave markets more room to fall, says Ralph Fogel, an invest- ment strategist at Fogel Neal Partners in New York. ‘‘When markets are at their bottom, they don’t lis- ten to bad news. But because we’re at the top end, they listen,’’ said Fogel. The broadening of Europe’s debt troubles fol- lows disappointing U.S. employment news and a setback in negotiations over the country’s borrowing THE Locally owned & operated Keep the WARM air out & the 5A>6 air in ENERGY EFFICIENT WINDOWS with Complete Dental Care • Cosmetic Dentistry • Adults And Children • New Patients Warmly Welcomed! www.MooreandPascarella.com limit. The government report- ed Friday that employers pulled back sharply on hir- ing in June, compounding fears that the U.S. economy was in even worse shape than previously thought. The unemployment rate rose to 9.2 percent. Weekend budget talks between Republicans and Democrats also stalled, rais- ing the possibility that law- makers might not reach an agreement on raising the country’s debt limit before an Aug. 2 deadline. Presi- dent Obama said he would- n’t sign a short-term exten- sion to the limit. ‘‘Markets don’t like when they don’t know what’s going on,’’ said Fogel. ‘‘They don’t appreci- ate politics.’’ News Corp. fell 7.6 per- cent on Monday, the most of any company in the S&P 500, as its phone hacking scandal threatened the approval of its proposed takeover of British Sky Broadcasting, a highly prof- itable satellite TV company in Britain. The deal will now be reviewed by British competition authorities, which will put off a final decision for several months. Wells Fargo fell 2.6 per- cent after the bank offered to settle for $125 million with pension funds that accused it of not warning investors about risky mort- gage-backed securities. Insurer American Inter- national Group Inc. fell 3.6 percent after saying it would fire one or more of the banks it used for its recent public stock offering when it sells more stock later this year. The move indicates that the company might not have confidence in its abili- ty to sell more stock at a desirable price. Gulfport Energy Corp. fell 6.2 percent. The oil and natural gas producer plans to sell 3 million shares to repay debt and pay for acquisitions. Aluminum maker Alcoa Inc. fell 2.9 percent ahead of announcing its second- quarter results. Alcoa’s report marks the unofficial beginning of U.S. earnings season. Aluminum is used in everything from airplanes to beer cans; the company’s results typically offer insight into the health of the broader U.S. economy. The company reported earnings after the market closed. Its income more than doubled as higher sales and prices offset increasing 1010 Jefferson St., Red Bluff 527-7800 prices for raw materials, the company reported. Alcoa earned 32 cents per share. Analysts expected the com- pany to earn 33 cents per share, according to FactSet. The company reaffirmed its forecast for 12 percent growth in global aluminum demand this year. Alcoa was down 0.4 percent in early aftermarket trading. Several companies did post gains on Monday. Arch Chemicals Inc. rose 11.7 percent after saying it would be bought by Swiss drug- maker Lonza for $1.2 bil- lion. Arch makes antibacte- rial products. Chip-maker Microsemi Corp. was up 2.3 percent after an Oppenheimer ana- lyst upgraded its rating on the company. The analyst cited a growing backlog of orders and improving profit margins. LinkedIn rose 1.1 per- cent after web analytics company Comscore said that in June, the profession- al networking site was sec- ond only to Facebook among social networking sites in its number of unique visitors. LinkedIn had 33.9 million unique visitors in June. Facebook had 106.8 million unique visitors. Six stocks fell for every one that rose on the New York Stock Exchange. Vol- ume was lighter than usual at 3.5 billion shares. Respecting People. 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