Issue link: https://www.epageflip.net/i/77198
8A Daily News – Friday, August 3, 2012 NEW YORK (AP) — European leaders on Thurs- day gamely promised to keep tackling the continent's debt crisis. But the markets wanted much more. Stocks sank across the U.S. and Europe, the euro fell against the dollar and investors dumped bonds issued by the governments of Spain and Italy. Investors had been expecting more immediate action from the European Central Bank and were disappointed by the plan's lack of details, espe- cially considering the ECB president's pledge last week to do "whatever it takes" to keep the euro intact. A week later, investors' response was more like: "whatever." It was the second day in a With no concrete action in Europe, stocks slump Wall Street to 12,878.88. The Dow had been down as much as 192 shortly after noon. 500 index fell 10.32 to 1,365. The Nasdaq compos- ite index lost 10.44 to 2,909.77. It was the fourth day in a The Standard & Poor's fortable by the spring of 2009 that there wouldn't be uncontrollable bank failures. "People look at Euroland row that markets were dis- appointed by a lack of deci- sive action from a major central bank. On Wednes- day, stocks closed lower after the Federal Reserve made only vague promises about its plans for trying to revive the U.S. economy. "It's more jawboning, it's row of losses; U.S. stocks haven't risen since ECB President Mario Draghi's now-famous three-word promise one week ago. Investors had been hop- ing for clear action from the ECB, such as a cut in inter- est rates or clear plans to buy more European government bonds, which could lower borrowing costs for troubled countries like Spain and Italy. more copy and paste from last week," said Kenny Pol- cari, managing director of the brokerage ICAP. "There was no definitive plan, and so all the hype and energy (Draghi) created last week is going to go down in flames today." The Dow Jones industri- al average fell 92.18 points But Germany's central bank, which has footed much of the bill for bailing out other European coun- tries, declined to go along. And so Draghi on Thursday had to tell a highly anticipat- ed news conference that the ECB "may" intervene in the bond market. He promised the ECB would consider other emergency measures in coming weeks. The yield, or interest rate, on Spain's benchmark 10- year bond jumped to 7.06 percent from 6.68 percent late Wednesday, making it more expensive for the and say, 'Why don't they get something done there?'" Bertelsen said. "How quick- ly they forget what a miser- able six months it was here." In the U.S., thoughts of Europe were close at hand. General Motors and Kel- logg reported lower quarter- ly profits and put some of the blame on Europe. In other trading: —Knight Capital Group, the trading firm whose tech- nical glitch sent trading of dozens of stocks into chaos early Wednesday, lost 63 percent of its value, plung- ing $4.36 to $2.58. In two days, it has lost 75 percent of its value. country to borrow money. The yield on Italy's 10-year bond rose to 6.30 percent from 5.85 percent. Other countries have been forced to seek bailouts once their rates rose above 7 percent. To be fair, the ECB faces a Herculean task with no easy solutions. Whatever it does is sure to offend some- one. Some of the weaker countries, like Greece, have lodged their own resistance to other ECB measures, such as demands for spend- ing cuts meant to help coun- tries achieve sustainable budgets. It's also unrealistic for investors to expect quick fixes to a problem that was so long in the making, said GOLDEN, Colo. (AP) — Mitt Romney promised Thursday that his economic program will create 12 mil- lion new jobs in the next four years, and likened President Barack Obama to a ''dog trying to chase its tail'' when it comes to strengthening the sluggish recovery. Christian Bertelsen, chief investment officer of Global Financial Private Capital in Sarasota, Fla. there was a half-year lag between the Treasury Department announcing it would buy stakes directly in banks in the fall of 2008 and investors becoming com- In the U.S., he noted, ad with a scathing summa- tion of Romney's tax plans: ''He pays less. You pay more.'' —Abercrombie & Fitch dropped 15 percent and Aeropostale dropped 33 per- cent after both companies warned of weak second- quarter sales. Abercrombie lost $4.96 to $29.06. Aero- postale lost $6.37 to $13.08. —A smattering of posi- tive signs about the econo- my got lost in the greater maelstrom. Retailers includ- ing Target, Limited Brands and Gap announced that July sales beat expectations. Shares of all three compa- nies climbed, with the biggest increase at Gap. It rose 13 percent, gaining $3.75 to $33.17. Obama and Romney trade economy barbs Firing back instantly, Obama said his rival favors ''trickle-down fairy dust'' that has failed to fix the economy in the past, and unleashed a new television Expert Repair Work of All Types Fire Season Still In Effect Firefighter Nicks For Hunting with Get Ready Danner & Rocky The two men cam- paigned in battleground states hundreds of miles apart, the incumbent in Florida, his challenger in Colorado, both on a mission to convert undecided voters to their side in a race domi- nated by the economy and high joblessness. Nor was there any sum- mer lull in the television ad wars. Americans For Pros- perity, an independent group that backs Romney, intends to launch a $25 mil- lion ad campaign beginning next week, according to officials familiar with the arrangements. The organi- zation was founded by David and Charles Koch, billionaire brothers, and has spent about $15 million in swing states this year on ads attacking Obama. For Romney, the day meant a return to domestic campaigning after a week- long overseas trip. Aides say he intends to disclose a vice presidential pick before the Republican National Convention opens on Aug. 27 in Tampa, Fla. Sierra Sound Car Audio 35th $ 478 Antelope Blvd. • Red Bluff • 529-5466 226 So. Main St., Red Bluff 527-3735 All CD's 13.99 Anniversary Sale or less