This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Drop on Europe Worries, Bernanke


NEW YORK ( TheStreet) -- U.S. stocks finished deep in the red on Thursday, driven lower by a rekindling of worries about Europe's debt crisis and uneasiness about an upcoming speech from Federal Reserve Chairman Ben Bernanke.

An elevated weekly initial jobless claims report also took a bite out investor risk appetite, pushing the safe-haven benchmark 10-year Treasury up 7/32, diluting the yield to 1.632%. The greenback rose 0.19%, according to the dollar index.

The Dow Jones Industrial Average dropped nearly 107 points, or 0.81%, to close at 13,000.71. Earlier in the session, the blue-chip index scraped a low of 12,979, dipping below the 13,000 mark on an intraday basis for the first time since Aug. 3.

Twenty-eight of the Dow's 30 components finished with losses The biggest percentage decliners were Caterpillar (CAT), Cisco (CSCO), Intel (INTC).

The S&P 500 sank 11 points, or 0.78%, to settle at 1399.48, its first close below 1400 since Aug. 6.

The Nasdaq took the biggest hit, surrendering more than 32 points, or 1.05%, to finish at 3049.

The weakest sectors in the broad market were basic materials, capital goods, conglomerates, energy and technology.

Decliners outpaced advancers by a more than 2-to-1 ratio on the New York Stock Exchange and a 3-to-1 ratio on Nasdaq. Volume totaled 2.45 billion on the Big Board and 1.22 billion on the Nasdaq.

The latest data on weekly initial claims was disheartening ahead of the August jobs report, which is due next Friday. First-time filers totaled 374,000 for the week ended Aug. 25, the highest level in a month and above the consensus view of 370,000. Continuing claims for the week ended Aug. 18 fell 5,000 to 3.32 million.

"Nonfarm payrolls due next Friday is currently predicted to show a gain of just 115,000 fresh hires and the pace of improvement in the weekly initial claims series seems insufficiently strong to argue against that reading at this time," said Andrew Wilkinson, chief economic strategist at Miller Tabak.

Meanwhile, the Bureau of Economic Analysis reported that personal income increased 0.3% in July after rising 0.3% in June. Personal spending rose 0.4% after coming in basically flat the prior month. Economists had expected that personal income would rise in July by 0.3% and that spending rose 0.4%.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CIEN $25.44 1.40%
SHLD $21.54 1.20%
AAPL $121.55 -0.67%
FB $94.02 -1.20%
GOOG $626.43 -0.97%

Markets

Chart of I:DJI
DOW 17,690.46 -55.52 -0.31%
S&P 500 2,103.94 -4.69 -0.22%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs