Stocks End Lower on Japan Nuclear Crisis
NEW YORK (TheStreet) -- Stocks settled lower on Monday as investors worried about the impact of the devastating earthquake and tsunami in Japan Friday, and as the nuclear crisis in the country deepens.
The Dow Jones Industrial Average fell by 62 points, or 0.5%, to close at 11,983. The S&P 500 lost 7 points, or 0.6%, at 1,297 and Nasdaq shed 14 points, or 0.5%, at 2,701.
Shares of General Electric (GE) led the Dow lower, shedding 2.2% to $19.92 at the closing bell. GE supplied one of the reactors at Tokyo Electric's (TOELF.PK) Fukushima nuclear plant, which has been rocked by two explosions in the last three days.
The latest explosion Monday is at the plant's No. 3 reactor, which authorities have been trying to cool after a system failure in the wake of the earthquake.Hundreds of people in the vicinity of the plant have been ordered to stay indoors, although the plant operator has said the radiation levels were still within legal limits. The disaster has raised concerns about the U.S.'s own nuclear and energy policy, with uranium stocks coming under pressure. Shares of uranium companies in the U.S. including Denison Mines (DNN) and Uranium Resources (URRE) plunged more than 22% in the wake of the nuclear crisis in Japan. "The nuclear power industry will come under scrutiny, and accordingly, nuclear-oriented stocks will fall," Luminous Capital partner Alan Zafran said in a note. "A number of governments may delay or even reconsider plans to expand their atomic energy strategies. Conversely, natural-gas stocks and other companies whose fortunes are tied to alternative energy techniques may rise as investors anticipate a correlating shift in consumption for their services."
|The damaged Unit 1, left, and Unit 2, right, of the Fukushima Dai-ichi nuclear plant are seen in Okumamachi, Fukushima Prefecture.|
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