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10B Daily News – Tuesday, July 24, 2012 Mon-Fri: 9am - 7pm Sat: 9am - 5pm Sun: Closed En Español 26 Sale Lane, Red Bluff (530) 529-2192 www.Claytonredbluff.com $48,505 3 bedroom, 2 bath Singlewide: Includes home, set-up, delivery, X12 foundation, gravel pad, A/C, skirting and steps Through the Newspapers in Education program, area classrooms receive the Red Bluff Daily News every day thanks to the generosity of these local businesses & individuals. THANK YOU FOR SUPPORTING NEWS DAILY RED BLUFF TEHAMACOUNTY E VOICE OF TEHA M A C O U N T Y S I N C E 1 8 8 5 NEWSPAPERS 2nd triple-digit loss for Dow in 2 days NEW YORK (AP) — Fear that Spain may need a bailout sent its borrowing costs soaring, the euro to a two-year low against the dollar and stocks around the world tumbling as investors pulled back Mon- day from all manner of risk. al average, after falling 239 points earlier in the day, ended down 101.11 at 12,721.46. Yields for U.S. government bonds sank to record lows as traders sought the safety of Ameri- can debt. Borrowing costs rose sharply for Spain and Italy after news that the Spanish economy contracted by 0.4 percent in the second quar- ter. Falling economic output makes it more difficult for Spain to deal with its debts. The Standard & Poor's The Dow Jones industri- 500 index fell 12.14 points to 1,350.52. The Nasdaq composite index dropped 35.15 points to 2,890.15. ''Increases in Spanish Wall Street had agreed to in exchange for aid. The Greek government has repeatedly failed to hit targets required for the two bailouts it has received so far. Adding to the jitters, a Chinese central bank advis- er forecast that China's economic growth could slow from its second-quar- ter rate of 7.6 percent, which was already the slowest in three years. Investors had hoped that from Madrid to make ends meet. That followed news last week that an eastern region of the country had asked for help. In a move that recalled the global financial crisis four years ago, Spain's market regulator on Mon- day said it was temporarily banning short selling of shares on its stock indexes. In a short sale, an investor seeks a profit by betting that the price of a certain stock will fall. the world's second-largest economy would compen- sate for slowdowns in the U.S. and Europe but now aren't so sure. ''I wish it were still the • THE GOLD EXCHANGE • LUIGI'S PIZZA • RED BLUFF AUTO DISMANTLING • McDONALDS • OLIVE CITY QUICK LUBE • WALMART • ADOBE ROAD CHEVRON • CORNING AUTO CENTER • DM TECH HIGH SPEED INTERNET • GARCIA CONSTRUCTION • INTER-CITY BODY & PAINT • NORTH MAIN AUTOMOTIVE • RANCHO GRANDE RESTAURANT • SCHOOL HOUSE MARKET • TEHAMA CO. DEPT. OF ED. • FIDELITY NATIONAL TITLE CO. • JOHN WHEELER LOGGING, INC. • TRIPLE R GAS • LASSEN TAX PROFESSIONALS • RED BLUFF VISION CENTER • DUDLEY'S EXCAVATING, INC. • CALIFORNIA WALNUT CO., INC. • BRETNEY SUTTERFIELD • EDWARD JONES, CORNING • ETZLER FINANCIAL & INSURANCE • LEPAGE COMPANY, INC. • OLIVE CITY TAX PROFESSIONALS • PLACER TITLE COMPANY • AIRPORT AUTO REPAIR • KAY STEPHENS, MD • GREENWASTE OF TEHAMA • LOUISIANA PACIFIC CORP. • TEHAMA COUNTY ASSOCIATION OF REALTORS • STEVE'S BACKHOE SERVICE • GONZALES JUMPERS PARTY RENTALS • HUHN ELECTRIC • TEHAMA AUTO CENTER • JANETTE VOTAW ACUPUNCTURE Please help sponsor a classroom subscription Call Kathy at (530) 527-2151 to find out how. borrowing costs have brought back questions about the health of Europe,'' said Guy LeBas, chief fixed income strate- gist at Janney Montgomery Scott in Philadelphia. ''That's driven a flight to safety.'' The selling was wide- spread. All 10 industry groups within the S&P 500 were down, with materials and health care companies off more than 1 percent. Including Friday's drop, the Dow is down 222 points, the biggest back-to- back drop in more than a month. investors are worried that Greece might get cut off from emergency loans it needs to avoid default. On Tuesday, inspectors from its international creditors arrive in the country to check on its progress in cutting its budget and in meeting other conditions it In addition to Spain, weekend,'' said Lawrence Creatura, a portfolio man- ager at Federated Investors, a mutual fund firm. ''Peo- ple were initially worried just about the Europe, but now it's spread to China and beyond.'' In Spain, the yield on the benchmark 10-year government bond rose to 7.43 percent, the highest since the euro was launched in 1999 and a level considered unsustain- able for more than a few months. The fear was regis- tered in other trading, too. The cost for investors to take out insurance on Span- ish government debt soared to a record high Monday. The message: After Spanish banks had to seek money from international creditors to stay afloat, now maybe the Spanish govern- ment needs help. The prospect of bailing out Madrid is worrisome for Europe because the potential cost far exceeds what's available in existing emergency funds. over the weekend when a southern region of Spain announced that it might need a financial lifeline The fear ratcheted up Rent Special $500 OFF A Retirement Community for the Active Senior Citizens EQUAL HOUSING OPPORTUNITY 750 David Avenue, Red Bluff • 527-9193 ◆ Three Nutritious Meals Daily ◆ 24 Hour Secure Environment ◆ House Keeping Services ◆ Warm & Friendly Staff ◆ Independent Living ◆ Private Apartments ◆Recreational Programs ◆Scheduled Transportation ◆Private & Formal Dining Rooms first month rent! The U.S. briefly banned short selling of dozens of stocks in 2008 as prices were tumbling. Strong selling rattled European markets. The main stock index dropped more than 7 percent in Greece, 1 percent in Spain, 3 percent in Germany and France. Asian stocks were also sharply lower. to take a hit when fear flares in Europe, were among the biggest losers. Citigroup stock dropped 53 cents, or 2 percent, to $25.34. Bank stocks, which tend The price of oil fell $3.69, or 4 percent, to fin- ish the day at $88.14 per barrel in New York. Exxon Mobil stock declined 74 cents, or nearly 1 percent, to $85.21. below $1.21 against the dollar, its lowest since June 2010. The euro slipped just There were also signs that a global economic slowdown is hitting U.S. companies that rode out the anemic recovery well by selling more abroad. Now, they can't grow those sales as fast as before, and what they do sell has fallen in value as foreign currencies have weakened against the dollar. That's because U.S. companies must translate foreign currency earnings into dollars when reporting to investors, and weaker foreign currencies fetch fewer dollars.