US stocks fall as euro fears deepen
For the past few days, the US stock market was able to forget about problems in Europe. Friday put Europe squarely back in the spotlight.US stocks fell sharply as escalating problems in Spain jolted investors. Spain's stock market plunged 6% and its borrowing costs spiked after a regional government asked for a financial lifeline.
The drop on Wall Street, which sent the Dow Jones industrial average down as much as 133 points, marked a U-turn for the market. Stocks had risen over the past three days as investors focused on healthy earnings from US companies such as Mattel, Honeywell and Coca-Cola.
On Friday, talk of sluggishness in Europe was prevalent as more companies turned in their quarterly results.
Staffing agency Manpower fell 6%, and chipmaker Advanced Micro Devices fell 13%, after reporting that weak demand in Europe had dragged down second-quarter revenue.
Xerox trimmed its earnings forecasts as Europeans bought less equipment. Ingersoll-Rand, whose products include Trane air conditioners, cut its revenue prediction for the same reason. Both stocks fell.
Late on Thursday, guitar maker Fender abruptly cancelled its plans to go public, blaming "current market conditions" and "concerns about economic conditions in Europe". And General Electric, though its stock rose slightly, noted on Friday that its orders also fell in Europe.
Even the internet powerhouse Google noted that growth in Southern Europe had slowed, particularly in Spain. But Google also reported higher revenue and profit, and its stock rose 3%.
All the major US stock indexes fell. The Dow Jones industrial average dropped 120.79 points to 12,822.57. The Standard&Poor's 500 fell 13.85 to 1,362.66. The Nasdaq composite index lost 40.60 to 2,925.30.
All three indicators were down about 1%. They eked out tiny gains for the week and are about flat for the month to date.
Xerox trimmed its earnings forecasts as Europeans bought less equipment. Ingersoll-Rand, whose products include Trane air conditioners, cut its revenue prediction for the same reason. Both stocks fell.
Late on Thursday, guitar maker Fender abruptly cancelled its plans to go public, blaming "current market conditions" and "concerns about economic conditions in Europe". And General Electric, though its stock rose slightly, noted on Friday that its orders also fell in Europe.
Even the internet powerhouse Google noted that growth in Southern Europe had slowed, particularly in Spain. But Google also reported higher revenue and profit, and its stock rose 3%.
All the major US stock indexes fell. The Dow Jones industrial average dropped 120.79 points to 12,822.57. The Standard&Poor's 500 fell 13.85 to 1,362.66. The Nasdaq composite index lost 40.60 to 2,925.30.
All three indicators were down about 1%. They eked out tiny gains for the week and are about flat for the month to date.
© 2013 Press Association