Stocks Extend Losses - TheStreet

Stocks Extend Losses

U.S. stocks deepened their losses late Monday as Friday's disappointing May jobs report continued to weigh on sentiment.
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NEW YORK (

TheStreet

) -- U.S. stocks deepened their losses in the final half hour of trading Monday as May's disappointing jobs report last week continued to cloud investors' optimism regarding the recovery.

The

Dow Jones Industrial Average

lost 116 points, or 1.2%, at 9,817, extending losses from the previous session when the Dow lost 323 points. The

S&P 500

shed 14 points, or 1.4%, at 1051, and the

Nasdaq

fell by 45 points, or 2%, at 2174.

Global stock markets wobbled early Monday as investors felt renewed jitters about Europe and continued to absorb last week's downbeat jobs report from the Labor Department. On Friday, the markets began turning their focus to Hungary after officials there began comparing their economic woes to Greece, though they have since pulled back from the statements. The country's economic minister also made clear the country's commitment to meeting its 2010 budget deficit goal of 3.8% of gross domestic product,

The Associated Press

reported.

Factory orders in Germany also rose in April for the second month in the row, according to a report from

Bloomberg.

The euro pared some losses Monday after falling to a four-year low under the $1.19 mark earlier in the morning, according to

Reuters

.

Overseas, Hong Kong's Hang Seng fell 2% and Japan's Nikkei declined 3.8%. The FTSE in London shed 1.1%, and the DAX in Frankfurt dropped 0.6%.

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The Economy

The

Federal Reserve

said consumer credit rose $1 billion in April, besting economists' expectations that it would decrease by $2 billion in the month, according to consensus figures provided by

Briefing.com,

. The Fed also lowered March's level from an initially reported increase of $2 billion to a decline of $5.4 billion.

"Although the report indicates that credit probably grew at a fractional pace in April, the downward revisions to February and March more than offset the better than expected growth in April, driving aggregate credit outstanding down to levels last seen in June 2007," said Jim Baird, chief investment strategist for Plante Moran Financial Advisors.

"The primary takeaway from today's consumer credit number is that the contraction in credit continued through the first quarter of 2010, contrary to previous estimates that indicated that consumer borrowing had expanded early this year,"

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Company News

Bank of America

(BAC) - Get Report

,

United Tech

and

Caterpillar

(CAT) - Get Report

were turning in the Dow's worst performances thus far today, while

AT&T

(Y) - Get Report

,

Wal-Mart

(WMT) - Get Report

, and

Chevron

(CVX) - Get Report

were the leading gainers.

Utilities were the only sector trading higher by the close of Tuesday's session while capital goods and technology sectors were putting in the worst performance.

Bristol-Myers Squibb

(BMY) - Get Report

was the S&P's best performer, while

Evergreen Energy

(EEE)

was its biggest laggard.

Chip stocks were also coming under pressure today, as the Philadelphia semiconductor index dropped 3.3%.

Bank of America in particular was losing ground after Rochdale Securities analyst Dick Bove trimmed his price target and full-year earnings estimates, citing both government and market issues. Countrywide Financial, which was bought by Bank of America, agreed to pay $108 million to settle charges with the Federal Trade Commission that the mortgage servicer forced excessive fees on borrowers, according to a statement from the commission.

The Financial Crisis Inquiry Commission sent a subpoena to

Goldman Sachs

(GS) - Get Report

, saying the firm didn't meet timelines for document and interview requests.

BP

(BP) - Get Report

said it has spent $1.25 billion to date in response to the oil spill in the Gulf of Mexico. The company also experienced some better results over the weekend, saying a containment cap over the leak caught some 10,500 barrels of oil on Saturday.

Shares of

CVS Caremark

(CVS) - Get Report

fell more than 8% after

Walgreen

(WAG)

said it will no longer handle prescriptions managed by Caremark on account of disagreements over CVS's business practices and drug prices.

Marsh & McLennan

(MMC) - Get Report

said in a statement that it reached a deal to sell risk consulting unit

Kroll

to

Altegrity

for $1.13 billion. The transaction will also rejoin Altegrity CEO Mike Cherkasky with Kroll, a company he headed from 2001 to 2004.

Talecris

(TLCR)

will be acquired by Spanish health care firm

Grifols

for $3.4 billion.

Apple

(AAPL) - Get Report

CEO Steve Jobs revealed the company's

latest iPhone 4.0 at the firm's Worldwide Developers Conference Monday.

Coca-Cola

(KO) - Get Report

will pay $715 million to

Dr. Pepper Snapple

(DPS)

for a license to distribute certain brands in the Dr. Pepper Snapple stable.

Shares of

Bristol-Myers Squibb

(BMY) - Get Report

rose more than 6% after getting an upgrade at Goldman Sachs. Bristol-Myers also gained after some studies showed promising results on two separate drug treatments for melanoma and leukemia, according to

Bloomberg.

A so-called

"sticky pedal" issue is forcing

Chrysler

to recall some 600,000 vehicles.

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Commodities and the Dollar

Crude oil for July delivery lost 7 cents, or 0.1%, to settle at $71.44 a barrel.

Elsewhere in commodity markets, the August gold contract gained $23.10, or 1.9%, to settle at $1,240.80 an ounce.

The dollar was trading slightly higher against a basket of currencies, with the

dollar index up by 0.3%.

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>>Treasuries

Treasuries

The benchmark 10-year Treasury was gaining 6/32, pushing the yield up to 3.186%.

The two-year note dropped 1/32, strengthening the yield to 0.738%. The 30-year bond was adding 4/32, boosting the yield at 4.127%.

--Written by Sung Moss and Melinda Peer in New York

.

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