Stocks Fall as Eurozone Sentiment Falters
Signs of easing inflation may give the Federal Reserve more leeway to further stimulate the economy if needed. Market participants often meet the possibility with enthusiasm but as David Semmens, economist with Standard Chartered Bank, notes, "this is Fed friendly data but is going to do little to sway the market one way or the other right now given the focus on Europe."
The euro was down 0.35% versus the dollar. London's FTSE was losing 0.48% and Germany's DAX was slipping by 0.86%. Overnight, Asian stocks fell for a second day. Japan's Nikkei Average lost 0.92% and Hong Kong's Hang Seng closed down 2%.
In corporate news, Target (TGT) was gaining 3.2% after its third-quarter profit topped estimates. The discount retailer earned 87 cents per share, compared to the forecast 74 cents per share by analysts, as it expanded its food selection and offered a discount to cardholders.
Abercrombie & Fitch (ANF) was tumbling 14.1% after reporting third-quarter earnings of 57 cents a share, below the average analyst estimate of 71 cents a share.Dell (DELL) was losing 2% after it beat third-quarter earnings estimates but failed to meet analysts' expectations on revenue. Dell, the world's third-largest PC maker, reported adjusted earnings of 54 cents a share on revenue of $15.4 billion. Analysts were expecting earnings of 47 cents on revenue of $15.7 billion. Citigroup (C) was slipping by 2.1%. The bank is preparing to eliminate 900 jobs in its securities and banking division, or about 5% of the unit's worldwide staff, according to the The Wall Street Journal. Apple (AAPL) appointed Art Levinson as its new chairman, a role held by Steve Jobs before his death last month. Levinson, the chairman of Genentech, has been a co-lead of Apple's board since 2005, but will now serve as non-executive chairman. Apple also said Walt Disney (DIS) CEO Robert Iger will join its board. Shares were down 0.17% to $388.15. American Airlines parent AMR (AMR) was losing 2.9% after failing to reach a cost-saving agreement with its pilots. The lack of a deal raises the possibility that AMR will file for bankruptcy. Oil prices climbed back above $100 a barrel for the first time since early June. The December crude oil contract was gaining $2.33 to $101.70 a barrel. In other commodities, gold for December delivery was down $24.90 to trade at $1765 an ounce on Monday The dollar was strengthening against a basket of currencies, with the dollar index rising 0.25%. In the bond market, 10-year Treasuries were gaining 8/32, diluting the yield to 2.02%. -- Written by Chao Deng in New York.
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