After Market: Portuguese Debt Worries Echo on Wall Street

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Eurozone debt problems reared their ugly heads again Thursday, causing jitters on Wall Street. The focus this time was on Portugal -- the P of the much-troubled PIIGS nations -- and whether its largest bank, Banco Espirito Santo, is going to default on its debt. The parent company of the bank, a conglomerate, delayed some of its debt payments this week.

The Dow Jones industrial average (^DJI) fell 70 points, the Nasdaq composite (^IXIC) dropped 22 points and the Standard & Poor's 500 index (^GPSC) was lower by 8 points.

U.S. shares of European banks were down sharply. Credit Suisse (CS) and Deutsche Bank (DB) fell by more than 2 percent and Barclay's (BCS) was lower by almost 2 percent.

But when investors get nervous about stocks, they often flock to gold. Gold-related shares did well on the day. Yamana Gold (AUY), Agnico-Eagle Mines (AEM) and Barrick Gold (ABX) all gained more than 1 percent. Gold itself jumped $12.50 an ounce to $1,336.80, a gain of almost 1 percent.

Family Dollar (FDO) came out with earnings that missed expectations. Its current quarter outlook isn't much to get excited about either. The stock ended the day slightly lower.

Cleaning products company WD-40's (WDFC) earnings rose slightly in the last quarter, but the stock went the other way Thursday, falling more than 7 percent.

Shares of restaurant chain Potbelly (PBPB) fell a whopping 25 percent to an all-time low after It lowered its guidance, warning sales would be lower than expected in the second quarter.

Hardwood flooring retailer Lumber Liquidators (LL) also fell hard. The stock was down 21 percent after the company warned of weaker traffic in the second quarter and lowered its full year guidance. And that hit home renovation stocks. Home Depot (HD) wand Lowe's (LOW) were down around 1.5 percent.

But Retailer Zumiez (ZUMZ) had a great day. Its stock rose more than 6 percent. Sales at stores open at least a year rose 3 percent in June. That's three times last year's June growth.

And United Continental (UAL) soared 12 percent higher. Revenue per available seat mile increased 3.5 percent in the last quarter.

Also, Archer Daniels Midland (ADM) rallied 2.5 percent, and auto parts company TRW Automotive Holdings (TRW) gained more than 8 percent on news it has received a buyout offer.

And finally, Crumbs Bake Shop (CRMB) may not be history afterall. The stock rallied 1,300 percent after an investor group told CNBC it plans on financing the company. But even with that boost, the stock is only trading at 45 cents.

-Produced by Karina Huber.

What to Watch Friday:
  • The Treasury Department releases the federal budget for June at 2 p.m.
These major companies are due to release quarterly financial statements:
  • Fastenal (FAST)
  • Wells Fargo (WFC)

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12 Comments

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ted_wilson7

mac2jr
Bush cut taxes in an ego boost. ******* Tax cuts were across the board. The only debate is over the $700 billion cost for tax cuts to the top 2%, not the $3 trillion it costs to cut taxes to everyone else. In other words, people are happy to have “deficit reduction”......as long as someone else has to pay for it.

Bush started two illegal wars in an ego boost.******** 30 senate Democrats voted to use military force in Iraq….. How is that an ego boost ?

Bush released tens of thousands of HUD houses in an ego boost.****** So, enlighten the class as how signing The American Dream Downpayment Act , that assisted low income people to purchase a house, was an ego boost?

Bush did not fund infrastructure in an effort to look good, an ego boost.****** Then apparently it is equally an ego boost for Obama !

You and fake are running neck in neck for biggest moron… Keep up the good work.

July 11 2014 at 2:48 PM Report abuse rate up rate down Reply
ectullis

Sounds like Obsama always blaming something or someone else for the problems

July 11 2014 at 12:44 PM Report abuse -1 rate up rate down Reply
ted_wilson7

mac2jr
Today the House of Representatives voted to 'defund' about 90% of all the Energy and Water Resouce gains that President Obama has implemented in the last 5-years.. The excuse was the $17 trillion in debt that the U.S.A. has accrued..

One comment here states that President Obama was the cause of this $17 trillion, which is 100% incorrect..

75% of the debt that is counted is Social Security, Medicare, etc. and 25% is a combination of other items like borrowing $2.6 trillion from Japan, Canada, and China; cutting taxes for the rich; fighting two illegal wars that only created world havoc; etc.

NOT ONCE has anyone here or in congress come up with a simple solution to eliminating $2.6 trillion and the compounding interest on that money******** It's SIMPLE Mac, not unlike you, eliminating the SS Trust fund and stop pretending that SS is some how " pre-funded and that the Trust Funds actually hold any real assets, and that payroll taxes are anything but just taxes, would immediately eliminate 2.5 Trillion in debt to the people.

July 11 2014 at 8:40 AM Report abuse rate up rate down Reply
camrsss777

"99.9999 % of all of America's troubles can easily be traced back to three people, R. Reagan, G. Bush Sr., and G. Bush JR..."

You can't be that stupid, you made a fool out of yourself, our business and others made more money under Reagan than at anytime, when everything started to hit the skids was under Clinton.

You don't know what your talking about.

July 10 2014 at 11:15 PM Report abuse -2 rate up rate down Reply
Iselin007

fred
And your idol signed NAFTA- how's that work out, Einstein?
-------------------------------------------------------------------------------
Sad he said he wasn't for it, but waited until he was elected to sign it.

July 10 2014 at 10:57 PM Report abuse -2 rate up rate down Reply
MINDA

Leave Portugal alone merda secas!!

July 10 2014 at 10:46 PM Report abuse +3 rate up rate down Reply
Iselin007

They should back their currency with Portugese Rolls then they would really be rolling in the dough.

July 10 2014 at 10:16 PM Report abuse +1 rate up rate down Reply
dsb1252

WTF the "Investors" couldn't come up with a better excuse better than Portuguese Debt ? I'm sure all of the retirees ran to the brokers to sell off their 401's

July 10 2014 at 9:22 PM Report abuse +2 rate up rate down Reply
twinkletoze

Portugal is a pimple on Europes buttocks

#NONEVENT

July 10 2014 at 7:26 PM Report abuse -3 rate up rate down Reply
1 reply to twinkletoze's comment
Iselin007

No more than China is is on ours.
.

July 10 2014 at 10:41 PM Report abuse rate up rate down Reply
remadden

All those socialist countries over there have the same problem. They have over half the population living over the rest. The welfare programs account for a large percent of their GDP and they are crumbling under the weight of their debt.

This is the way the Democrats have been dragging this country for the past 40 years. The National Debt has more than doubled since the Dems first took control of the Senate and House on January 3, 2007. It has incrased 60% just since Obama has been in office.

Formula for economic disaster such as in Socialist European countries

July 10 2014 at 6:05 PM Report abuse rate up rate down Reply
1 reply to remadden's comment
clark8642

Glad to hear there was no debt during the administration of President Bush. Way to pick your years. No accountability there.

July 10 2014 at 8:15 PM Report abuse +2 rate up rate down Reply
1 reply to clark8642's comment
cameltoes_david

Obama is the president that said he would cut the deficit in half by the end of his first term, so why bring Bush into this?

July 10 2014 at 8:48 PM Report abuse -2 rate up rate down