Stocks Tumble on Eurozone Uncertainty
Uncertainty about the future of the eurozone continues to balloon as investors brace for the possibility of more macro drama in the aftermath of the critical Greek general elections on June 17.
"It is anybody's guess what the outcome will be," said Martin Mitchell, head of government trading at Stifel Nicolaus.
Peter Tuz, portfolio manager at Chase Investment Council, said if Greece leaves the euro, it would "open a Pandora's box of consequences that we can't all even think of."
Matt Lloyd, chief investment strategist at Advisors Asset Management, said Germany has a vested interest in keeping fiscally challenged countries in the euro because if "you start kicking out the fiscally challenged countries, it increases the euro's risk level, which would hurt export-driven Germany."The benchmark 10-year Treasury was rose 18/32, pushing the yield down to 1.601%. The dollar was fell 0.22%, according to the dollar index. The Hong Kong Hang Seng closed up 0.8% and the Nikkei in Japan finished higher by 0.6% on Wednesday. July crude oil futures settled down 73 cents at $82.62 a barrel. August gold futures were up $5.60 to settle at $1612.80 an ounce. In corporate news, Dell (DELL), the PC maker, announced plans after Tuesday's closing bell to start paying dividends. The stock rose 2%. Scotts Miracle-Gro (SMG) said lateTuesday it expects its fiscal 2012 performance to come in below its previously disclosed outlook because of weak sales and an unfavorable product mix. The company's prior adjusted forecast was for earnings of between $2.65 and $2.85 a share. Shares lost nearly 7%. Shares of Constant Contact (CTCT) dropped nearly 15% after the company agreed to acquire privately SinglePlatform, a small business information network. The deal involves $65 million in cash, and also includes additional costs related to employee retention and performance incentives.
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