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

What Is Your Risk Tolerance?

Answer the question "What type of investor am I?".

View Course »

Introduction to Economic Indicators

Measure the performance of the economy.

View Course »

Add a Comment

*0 / 3000 Character Maximum

18 Comments

Filter by:
Jeremiah

Global fears?

HA!

Obama govvernment troubles are causing all the volitility.

June 12 2013 at 7:14 AM Report abuse rate up rate down Reply
dnmbear

Market correction is coming, and I have no doubt. But just remember that what goes down will come back up just like a repaired tire! Just don't panic, as the sun still rises and sets like always. Use common sense and realize that this stuff does happen, but it always gets better. The "CRASH" is coming, so use your heads....as nothing lasts forever.

June 12 2013 at 2:35 AM Report abuse rate up rate down Reply
JOSEPH G MATTERA

THE LONG OVERDUE CORRECTION IS COMING;
PREPARE FOR THE BIG HIT;
YOU GREEDY BASTARDS.............

June 12 2013 at 1:30 AM Report abuse rate up rate down Reply
mastercommentor

the 'CRASH' is now underway! :-)

June 11 2013 at 10:26 PM Report abuse rate up rate down Reply
manddacc

The United States has got to stop worrying , feeding, defending and taking care of the rest of the world. Our government needs to start putting the US first. This country needs help.

June 11 2013 at 9:34 PM Report abuse +3 rate up rate down Reply
jwmgrand

Nothing but old hat ...old dulll securities stuck in trading ranges .. really nothing to make anytbody ... get real excited about approaching the dinner table .... The securities on the plate are rapidly cooling ........ and we know what that signals ........ and triggers ......... sell programs .....

June 11 2013 at 9:20 PM Report abuse rate up rate down Reply
IN MY OPINION ONLY

Massive housing foreclosure begins again in 2014. Have to hit rock bottom, then people start need Jesus Christ in their lives. China is about to take over America without a war as the idiots at the White House hit another debt ceiling with no turning point but close up.

June 11 2013 at 8:22 PM Report abuse +2 rate up rate down Reply
IN MY OPINION ONLY

It's about time.

June 11 2013 at 8:18 PM Report abuse rate up rate down Reply
generalp2

Such fears are overblown. If you think the economy is weak, just look around you at all the people driving fairly new cars, the people spending double and triple digit money on sporting events and Broadway shows, and eating in price restaurants. You can't get a reservation at the Morton's near us on Fri or Sat night. And, the real estate market is NOT going to collapse because we have something called INFLATION. The value of the dollar continues to decline in purchasing power because the government is printing money like there is no tomorrow. With inflation, hard assets (like real estate) WILL increase in value, as will really rare collectibles and other "value stores." I challenge any economist out there to directly connect any event that occurs on any given day, such as a change in the Chinese stock market or a drop or rise of unemployment in the US, with a fundamental change in the value of companies whose stock is traded on Wall Street. It can't be done. All that moves the stocks on Wall Street are the computer models that manipulate the market and the consumer confidence of those who trade stocks on a daily basis. Anything else can only affect stocks gradually in the long term and Inflation WILL gradually drive up the price of stocks in the long term. Don't listen to what the financial pundits say on a day by day basis. It will only drive you crazy.

June 11 2013 at 7:55 PM Report abuse +1 rate up rate down Reply
4 replies to generalp2's comment
ozamiz85

LOL.. Get used to the downturn. The second real estate collapse is about to also begin

June 11 2013 at 7:31 PM Report abuse +2 rate up rate down Reply