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10B Daily News – Saturday, July 21, 2012 Furniture Depot 235 So. Main St., Red Bluff 527-1657 SAT. 9:00-5:00 • SUN. 11:00-5:00 MON.-FRI. 9:00-6:00 For the past few days, the U.S. stock market was able to forget about problems in Europe. NEW YORK (AP) — Friday put Europe squarely back in the spot- light. U.S. stocks fell sharply as escalating problems in Spain jolted investors. Spain's stock market plunged 6 percent and its borrowing costs spiked after a regional govern- ment asked for a financial lifeline. The drop on Wall EXTRA SAVINGS ON Sofas • Recliners • Dining Sets • Mattress Sets Haunted by Europe, US market can't get ahead Wall Street Street, which sent the Dow Jones industrial average down as much as 133 points, marked a U-turn for the market. Stocks had risen over the past three days as investors focused on healthy earnings from U.S. companies like Mat- tel, Honeywell and Coca- Cola. On Friday, talk of slug- gishness in Europe was prevalent as more compa- nies turned in their quarter- ly results. Staffing agency Man- power fell 6 percent, to $33.46, and chip maker Advanced Micro Devices fell 13 percent, to $4.22, after reporting that weak demand in Europe had dragged down second- quarter revenue. they're wrestling with,'' he said. ''They have a sover- eign debt issue, they have a banking issue and they have a growth issue. ... I think we'll have one eye over there for years.'' Spain was the epicenter of the latest European earthquake. Protestors took to the streets to voice their disapproval of government spending cuts. The Trea- sury minister predicted that the recession would drag on into next year. And the region of Valencia said it needed help from the central government to pay its bills. Xerox trimmed its earn- ings forecasts as Euro- peans bought less equip- ment. Ingersoll-Rand, whose products include Trane air conditioners, cut its revenue prediction for the same reason. Xerox fell 49 cents to $6.70, and Ingersoll-Rand lost $1.22 to $40.25. maker Fender abruptly canceled its plans to go public, blaming ''current market conditions'' and ''concerns about economic conditions in Europe.'' And General Electric, though its stock edged up 7 cents to $19.87, noted Fri- day that its orders also fell in Europe. ''We prepared ourselves for a pretty tough year this year, or certainly a volatile year,'' CEO Jeff Immelt said in a call with analysts. ''We haven't been disap- pointed.'' GE's finance officer, Keith Sherin, said the company is making ''a full-court press'' to reduce exposure to Europe. Even the Internet pow- erhouse Google noted that growth in Southern Europe had slowed, particularly in Spain. But Google also reported higher revenue and profit, and its stock rose $17.76, to $610.82. All the major U.S. stock Late Thursday, guitar to 2,925.30. All three indi- cators were down about 1 percent. They eked out tiny gains for the week and are about flat for the month to date. Despite the generally sour mood in the market, two tech companies soared on their first day of trading. Kayak Software, a travel- booking website, jumped 28 percent, or $7.18, to $33.18. Palo Alto Net- works, a technology secu- rity company, rose 27 per- cent, or $11.13, to $53.13. The broad downturn Spain did get approval from the other euro coun- tries for a bailout for its struggling banks, but that wasn't enough to calm investors. The Spanish government's borrowing costs shot above 7 percent, the rate at which other countries have been unable to afford to borrow money. Spain's borrowing costs rose to 7.22 percent and its benchmark stock index plunged 6 percent, to 6,246.30. To be sure, bad financial news out of Spain is hardly new. Just as troubling, if not more so, were budding signs that the crisis is deep- ening even among Europe's relatively strong members. Germany announced that its eco- nomic growth likely slowed in the second quar- ter. In the U.K., the govern- ment said it had to borrow more than expected in June. was an unwelcome change after three days of gains, the Dow's longest winning streak in more than a month. Until Friday, investors focused on upbeat earnings from U.S. companies. Nearly three- fourths of the companies that have reported second- quarter earnings so far have beat expectations, according to FactSet. Jeff Mortimer, director indexes fell. The Dow Jones industrial average dropped 120.79 points to 12,822.57. The Standard & Poor's 500 fell 13.85 to 1,362.66. The Nasdaq composite index lost 40.60 of investment strategy for Bank of New York Mel- lon's wealth management division, expects Europe's problems to drag on for a long while. ''There is no quick answer to the issues that The country's six mega- banks — Bank of Ameri- ca, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo — all fell. Investors are concerned about an array of recent challenges, including Moody's down- grades at all the banks except Wells, and net job cuts over the year at all the banks except JPMorgan. Among other stocks making big moves, Chipo- tle plunged 22 percent even though the burrito chain reported big jumps in revenue and profits. Even though revenue climbed 21 percent, ana- lysts had expected more. Chipotle stock lost $86.88 to $316.98.