Weak Earnings Outweigh Jobs News; Stocks Slip
Most of Europe's major stock indexes ended the day lower. Only Germany and Greece bucked the trend.
Europe has returned to investor's radars after several months of relative quiet. Stocks fell on Monday, partly because of a spike in borrowing costs for Italy and Spain. That reignited concerns that those countries won't be able to service their debts.
Still, some say that the decline is more of a pullback than a sell-off. That will give investors a chance to buy stocks at lower prices in anticipation of the market resuming its rally.
Stocks have jumped this year on optimism that the housing market will sustain its recovery and the job market will slowly heal. Corporate earnings growth has also accelerated."There's really nothing new to worry about it," said Sam Stovall, chief equity strategist at S&P Capital IQ. As stocks fell Thursday, bonds rallied. The yield on the 10-year Treasury note, which moves inversely to its price, fell 1 basis point to 1.95 percent. Among other stocks making big moves: â¿¿ Akamai Technologies Inc., which helps websites deliver online content, plunged $6.32, or 15.2 percent, to $35.26, after revenue missed forecasts. â¿¿ Sprint Nextel Corp fell 3 cents, or 0.5 percent, to $5.74. The country's third-largest wireless carrier lost $1.3 billion in its latest quarter as it revamped its network to take on larger competitors. The company also lost 243,000 customers in contract-based plans. â¿¿ DeVry surged $4.29, or 16.4 percent, to $30.41 after the struggling for-profit education company reported better-than-expected earnings and analysts praised the its cost-cutting and restructuring efforts. â¿¿ Auto parts retailer O'Reilly Automotive jumped $7.45, or 8 percent, to $100 after earnings beat Wall Street forecasts.
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