Closing Bell: Global Fears Lead to Second Straight Day of Losses

×
Japan stocks
Getty Images
Global concerns take center stage as stocks suffer a second straight day of losses.

U.S. equities opened with steep declines, following a decision by the Bank of Japan not to adjust its monetary policy. Investors had been hoping for new measures to ease recent volatility. Ongoing worries about Europe's economic weakness also weighed on the market. This week, Germany's constitutional court will hear a legal challenge to the ECB's bond-buying program.

After clawing back some of their early losses, stocks on Wall Street sold off again in the last hour of trading. The Dow Industrials finished 116 points lower, while the Nasdaq Composite dropped 36, and the S&P 500 slipped 16 points.

Those global fears took the biggest toll on the financial sector. Shares of Citigroup and Morgan Stanley slid nearly 4 percent each, while Goldman Sachs fell 2.5 percent, and JPMorgan Chase lost 1.5 percent.

One of the big movers on the upside was Dole Food. It surged 22 percent, after Chairman and CEO David Murdock offered to buy out the company for about $1.5 billion dollars.

In other M&A news, Japan's Softbank raised its offer for Sprint Nextel to $21.6 billion dollars, in an attempt to ward off a rival bid from Dish Network. Shares of Sprint rose nearly 2.5 percent on the news.

But Google finished with modest losses. The Internet giant confirmed that it's buying Waze, an Israeli mapping software developer.

Elsewhere in the tech sector, the gaming console wars are heating up again. One day after Microsoft released details about the new Xbox One platform, Sony showed off its Playstation 4. More than anything, investors were taken with the Playstation's price: $100 less than the Xbox. Sony was rewarded with a 1 percent gain, while Microsoft dropped nearly 2 percent.

But that's nothing compared to the decline suffered by yoga gear-maker Lululemon Athletica. It tumbled more than 17 percent, on word that the company's chief executive, Christine Day, is resigning. During her five-and-a-half year tenure, Lululemon's stock price exploded six times higher.


Increase your money and finance knowledge from home

Socially Responsible Investing

Invest in companies with a conscience.

View Course »

Basics Of The Stock Market

Stock Market 101 - everything you need to know but were afraid to ask!

View Course »