(As of 8:07 am pacific)
Stocks head into a sharp decline Tuesday as worries over
Europe, namely Greece, set in. The Dow
Jones Industrial Average extended losses to a 5th straight session
as Greece’s struggles to form a functioning government sent amplified concern
over the debt crisis in Europe to the global markets. The Greek stock benchmark closed the day at a
two-decade low, while the Stoxx 600 and the DAX shed nearly 2%. In the US, stocks retreated on European woes
and lackluster corporate earnings.
Shares of McDonald’s declined 1.6% after April sales missed estimates. Game-maker Electronic Arts Inc. declined
7.27% on an earnings missed and watch-maker Fossil Inc. plunged 37.50% after
cutting its 2012 forecast. In economic
news, US home prices edged up 0.6% in March for the first time since July
2011. The National Federation of
Independent Business reported that its small business optimism gauge rose to 94.5
matching a post-recession best.
Commodities were hard today with oil prices continuing the retreat, down
2.04% to 95.94 and gold was off 2.17% to 1603.50. The US dollar climbed and the 10 yr. treasury
yield fell 4 basis points to 1.83%. 30
yr. mortgage rates fell to 3.79%. The
CBOE volatility index climbed back over 20, up 8.61% to 20.57.
