Wall Street Has Worst Week In Two Months

Although Black Friday proved to be rich with bargains for American consumers, Wall Street had a much sleepier day as European debt fears continue to pound financial market worldwide.

The Dow Jones Industrial Average slid 25.6 points, or 0.23%, to 11,232, the S&P 500 skidded 3.1 points, or 0.27%, to 1,159 and the Nasdaq Composite fell 18.5 points, or 0.75%, to 2,442. The Dow, S&P and Nasdaq all finished the shortened trading week by more than 4.7% to the downside, and have now been down for two weeks in a row. All three markets haven fallen into the red for the year after a short-lived rally in the fall.

Investors have been worried about Europe’s inability to get its sovereign debt crisis in check. While Belgium had its credit rating reduced one notch from AA+ to AA by Standard & Poor’s rating agency, Hungary’s debt rating was slashed to junk status by Moody’s late on Thursday. While this came as no real surprise, it still serves as a reminder just what a mess the whole European region is facing.

Also in Europe, Italy was forced to pay an average yield of 6.5% on a roughly $10.7 billion auction of six-year bonds, far higher than the 3.5% it paid at its October auction, signaling a much higher risk premium.

European blue chips jumped 1%, while the euro fell 0.76% to $1.324. The English FTSE 100 climbed 1.4% to 5,198 and the German DAX rose 1.7% to 5,421.
In Asia, the Japanese Nikkei 225 edged lower by 0.06% to 8,160 and the Chinese Hang Seng tumbled 1.4% to 17,689.

The benchmark crude oil contract traded in New York rose $1.03, or 1.1%, to $97.20 a barrel. Wholesale RBOB gasoline slipped less than a penny, or 0.15%, to $2.51 a gallon.

Gold dropped $2.30, or 0.14%, to $1,697 a troy ounce. The yield on U.S. government debt ticked higher. The benchmark 10-year note yields 1.939% from 1.883%.

written by

Danny is the old hat at Active Investor. One of the been around the block a few times traders, his main focus is on overall market conditions. Be it some new merger talk or Washington being Washington, you can expect Danny will be on top of it.
Related Posts

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

© Copyright - Active Investor
Real Time Analytics