Issue link: https://www.epageflip.net/i/39490
Wednesday, August 17, 2011 – Daily News 3B NEW YORK (AP) — Worries about Europe's economic and debt problems sent stocks Tuesday to their first loss in four days. The major indexes bounced up US stocks fall on European economic, debt worries Wall Street and down in another volatile day. The Dow Jones industrial average fell more than 120 points in the first half hour of trading after a report showed that Germany's economy stalled last quarter and dragged down growth for Europe. The Dow recovered and had a slight advance at midday, but resumed its drop after the leaders of France and Germany tried to calm worries about Europe's debt problems by pushing for long- term political solutions. Investors were hoping for immediate finan- cial measures like the introduction of a single bond jointly backed by the eurozone's members. The Dow fell as many as 190 points in the early afternoon before again recovering. At the close, the Dow was down 76.97, or 0.7 percent, to 11,405.93. It was the first time in seven trading days that the Dow rose or fell by less than 100 points. The Standard & Poor's 500 index fell 11.73, or 1 percent, to 1,192.76. The Nasdaq composite fell 31.75, or 1.2 percent, to 2,523.45. ''The real question the market is trying to answer is: Are we going to have another recession or not?'' said John Burke, head of Burke Financial Strategies with $200 million in assets under man- agement. ''Today, the answer is maybe yes, because it doesn't look like Europe has figured out a solu- tion to its debt.'' A proposal for a Europe-wide tax on financial transactions also hurt stocks, said Nick Kalivas, vice president at broker MF Glob- al. ''It's another slap in the face to the banking system'' and would cut into profits and limit trading, he said. ''The path toward eco- nomic growth still looks pretty uncertain.'' In the U.S., economic reports Tuesday were mixed: Housing remains weak, but factory output rose last month at its fastest pace since an earthquake in Japan dis- rupted global manufacturing in March. ''Investors don't know which way to go here,'' said Paul Brigan- di, senior vice president of Direx- ion Funds, which has about $7 bil- lion in assets under management. On one side, he said buying looks attractive because stocks are cheaper after the S&P 500's 10.4 percent drop from July 21 to Mon- day. And more U.S. companies on Tuesday joined the stream of those that have reported earnings above analysts' expectations. But on the other side, selling looks appealing because of worries about the glob- al economy and debt problems in the United States and Europe. Prices for gold and Treasurys rose as money moved into invest- ments considered safer. Oil fell on worries that a weaker economy will mean less demand for energy. Fitch Ratings said Tuesday it will keep its credit rating on the United States at the top grade. Two of the three major credit-rat- ing agencies now have stood by their AAA grade of U.S. debt. Standard & Poor's downgraded the U.S. on Aug. 5. That sent stocks on a volatile slide last week. Europe's economy and debt troubles have been among global investors' main concerns over the last year and a half. On Tuesday, the European Union reported that economic growth in the 17 coun- tries that use the euro slowed to 0.2 percent between April and June from 0.8 percent the previous quarter. Germany's growth fell to 0.1 percent from 1.3 percent. That will make it even tougher for Spain and other countries to raise revenue. Some European countries have borrowed so much that they may need help repaying debt. French President Nicolas Sarkozy and German Chancellor Angela Merkel called for a ''new economic government'' for Europe and said all countries that use the euro should have mandato- ry balanced budgets and better coordination of economic policy. They also pledged to harmonize their corporate taxes to show they are ''marching in lockstep'' to pro- tect the euro. In the U.S., the government reported that homebuilders are still stuck in their years-long percent after it said net income rose 5.7 percent last quarter from a year ago on strong overseas sales. Earnings growth was stronger than analysts expected, and the world's largest retailer raised its profit forecast for the year. Home Depot Inc. rose 5.3 per- cent after it said second-quarter net income rose 14 percent and raised its profit forecast. Investors have largely slump. They broke ground on new homes at an annual rate of 604,000 last month, according to the Commerce Department. That's down from 613,000 in June. In 2005, before the housing bubble burst, housing starts were typically above 2 million. Manufacturing may be recov- ering. The Federal Reserve said industrial production rose 0.9 percent last month on a pickup at auto factories, utilities and mines. Manufacturing was one of the strongest industries after the recession ended in 2009, but its growth has slowed this year. Wal-Mart Stores Inc. rose 3.9 ignored the strong earnings that companies have reported for the second quarter. Those in the S&P 500 index earned a record amount per share last quarter on an operating basis, which ignores one-time costs and other special items, according to S&P senior index analyst Howard Sil- verblatt. Energy stocks in the S&P 500 fell 1.7 percent after oil fell $1.23 per barrel to settle at $86.65. NYSE Euronext Inc. fell 8.4 percent for the biggest loss among stocks in the S&P 500 on worries that a possible European financial-transaction tax could hurt its profits. The yield on the 10-year Trea- sury note fell to 2.22 percent from 2.31 percent late Monday as investors moved into things considered safer. A bond's yield falls when its price rises. The 10- year yield fell to a record low of 2.03 percent last week. Gold rose $27 per ounce to set- tle at $1,785. Last week, it rose above $1,800 for the first time. HOME SERVICES DIRECTORY Print Runs Every Monday - Wednesday- Friday $9900 AC & Heating HVAC & General Contractor Lic. #619239 TAKE ADVANTAGE OF ALL REBATES ON FULL INSTALLATIONS FREE ESTIMATES D.A.V. & SENIOR DISCOUNT References available upon request (New Construction/Remodels) 1-800-739-4706 Serving Tehama County and surrounding areas since 1990 Residential • Commerical PATIOS • DECKS Construction Remodel, Construction Burrows New Additions, Siding Repair and Replacement, Water and Dryrot Damage Specialist, New Construction Foundation to Finish FREE ESTIMATES & REFRENCES Lic#824770 Ph: (530) 515-9779 Advertisement If this was your Service Directory ad customers would be reading it right now!! Call us at 527-2151 For more information Plumbing/Handyman Jim the Plumber and Handyman Services 25 years experience Free Estimates Free Travel Time See Angie's List No Job to small Quality work ...cheaper! Local References (530)366-6033 24 hour service Lic#11003 Construction FREMONT ABLE CONSTRUCTION • Remodeling • Room Additions • Painting • Ceramic Tile • Linoleum Floors RESIDENTIAL • COMMERICAL Kitchens • Bathrooms • Doors • Windows • Gutters • Roofing • Cement • Decking • Heating & Air Repair All types of Additions, Remodels & Repairs Fast Reliable Work FREE Estimates Harry Vossoughi (530) 528-0723 CA Lic #751534 Landscape Contractor * Custom Landscaping * Landscape Maintenance * Hardscaping * Irrigation Experts * Landscape Lighting 30 years experience consistent & reliable David McFann Office (530) 527-3163 visit us @ dpm-landscaping.com Ca. Lic #560133 Storage BAKER ROAD STORAGE (530) 528-1456 HALF OFF ALL SIZES Expires. Aug. 22, 2011 Est. 1979 On-Line No early cancellation, non-refundable Advertisement Auto Upholstery If this was your Service Directory ad customers would be reading it right now!! Call us at 527-2151 For more information Martin's Auto Upholstery 30 years in business Specializing in • Classic Cars • Restoration or Custom • Auto Interiors & Tops • Boat Seats & Tops "Quality is our main concern" 1930 Jefferson Avenue Red Bluff (530) 527-2929 Chuck Martin Contractor When you want it done right ... HIRE A LICENSED CONTRACTOR! Complete directory of Tehama County contractors online, listed by specialty on 2011 Contractors Guide under "Special Sections" www.RedBluffDailyNews.com Click on Landscape/Fence Tractor & Landscape Service Steve's • Fence Building • Landscaping • Trenching • Rototilling • Disking • Mowing • Ridging • Post Hole Digging • Blade Work • Sprinkler Installation • Concrete Work Cont. Lic. #703511 Steve Dyke 385-1783 Tractor Service Tractor Dan "Have Tractor-Will Travel" Mow (Rotary or Flail) Till - Disk - Rip - Harrow Load - Light Hauling Gannon Box - Float Dan Marshall Owner/ Operator Insured Tehama County Resident since 1958 (530) 527-1437 Commercial & Residential Full Service Lawn Maintenance • Mowing • Lawn Aerations • Edging • Spring Clean-ups • Weedeating FREE CONSULTATION Serving Greater Tehama County since 1994 Yard Maintenance Yard Maintenance (530) 321-0981 * Lawns * Bushes * Tree Trimming * Clean-ups * Sprinkler Repair & Installation FREE ESTIMATES Remodels & Additions Help for Seniors & Singles "Let me help you with the small repairs to keep your home running smoothly" 527-2288 Home Repairs At Very Reasonable Rates Call Richard at Lawn Care Print and On-Line runs 7 days a week, 24 hours a day at www.redbluffdailynews.com in the Tehama Country Real Estate section Blinds Need Blinds? C A L L P A U L Paul Stubbs Blinds & Draperies www.nsbd.biz Lic.#906022 Handyman 527-0842 North State Building Construction Your Repair & Remodeling Expert • Room Additions • Framing • Full Service Concrete Work and Foundations • Electrical Work, New and Repairs • Plumbing Work • Drywall Installation • Tape/Texture R. G. SIDES • Trim/Crown Molding • Finish Work • Doors & Hardware • Windows & Skylights • New Roof Comp. • Concrete Work, Colored Overlays • Retaining Wall, Concrete or Block • Masonry Work • Fences • Buildings • Brick Work • Set-up Manufactured Homes and Repairs • Small Jobs • Tile Work, Bathrooms, Kitchens, Counter Tops, Floors, Shower Pans & Walls Office # 530-528-8079 Lic.#639360 Landscaping CANNADAY'S LANDSCAPING Professional Lawn Care and Sprinkler Repair • Lawn Mowing • Firebreak/Fireline • Weed Eating • Pruning • Tree Removal • Hauling • Recession Proof Pricing David: (530) 736-6652 Masonry Troy Jones Masonry • Stone • Brick • Block • Backyard BBQ's & Patios Troy Jones - Owner Licensed & Insured #728683 (530) 528-1614 Construction Alns Construcin le to • Plumbing • Drywall Repairs • Fences • Decks • Concrete • Garages Quality at a reasonable price FREE ESTIMATES 530 949-6162 CA LIC#914460 Advertisement If this was your Service Directory ad customers would be reading it right now!! Call us at 527-2151 For more information Painting Bud Price Painting Interior & Exterior Power Washing Residential & Commercial Quality work at a fair price Free Estimates Senior Discount Bud 530-566-6300 Lic#11028 Whole House Fans Brent Kremer Whole House Fans Year Round Services Top of the Line Product by TRIANGLE ENGINEERING Commercial & Residential Radiant Barrier We also install the Best • Installed at the Lowest Prices Around! WHOLE HOUSE FANS Your Whole House Fan Low Price Leader NORTHERN CALIFORNIA (916) 484-0302 • toll free (866) 688-0302 WholeHouseFans.us • Norcalwhf@aol.com • Lic#842818 With this coupon. Limited time offer. $100 OFF Insulation • Designed by NASA House Remodel / Specialist Rental Turnovers / Repairs Bathroom Remodels / Tile Painting • Electrical