Stocks edge lower amid Greece jitters PDF Print E-mail
Monday, 06 February 2012 09:41

NEW YORK (CNNMoney) -- U.S. stocks fell at Monday's open, as investors anxiously await a Greek government decision on budget cuts that are key to securing a second bailout and avoiding default.

Dow Jones industrial average (INDU) lost 33 points, or 0.3%. The S&P 500 (SPX) shed 4 points, or 0.3%. The Nasdaq (COMP) dropped 15 points, or 0.5%.

After failing to strike a deal over the weekend, political leaders in Greece are set to resume talks Monday.

They're trying to reach a deal on austerity measures and financial reforms necessary for a €145 billion bailout package from the European Union, International Monetary Fund and European Central Bank.

Without the bailout money, the risk is that Greece will miss a €14.5 billion bond redemption in March. That could lead to a disorderly default, a development that would likely have severe consequences for the global financial system.

"Greece is the single largest determinant with what's going on with regard to sentiment," said Dan Greenhaus, equity market strategist at BTIG. "But there's a level of exhaustion. There's a sense that we want to get it over with."

U.S. stocks rallied Friday, following a much larger-than-expected increase in hiring and a surprise drop in the unemployment rate. The Dow ended the week at its highest level since May 2008, while the Nasdaq -- up more than 11% for the year -- finished at its highest level since December 2000.

Companies: Shares of Alpha Natural Resources (ANR) fell after the company announced late Friday that will reduce coal production by four million tons due to weakening demand.

Over the weekend, Micron Technologies (MU, Fortune 500) appointed Mark Durcan to lead the company after CEO and chairman Steve Appleton died Friday in a small-plane crash in Boise, Idaho. Durcan, who will also be the director of the Micron's board, previously served as chief operating officer and chief technical officer.

Meanwhile, investors will also continue to keep an eye on quarterly corporate results.

Hasbro (HAS)'s fourth-quarter earnings beat forecasts by a penny a share, but sales fell short and shares of the toy and boardgame maker lost ground.

Humana's (HUM, Fortune 500) fourth-quarter profit rose from a year earlier, and the health insurer also provided an upbeat guidance but shares edged lower.

Coinstar (CSTR), the parent of Netflix's (NFLX) rival Redbox, will report fourth-quarter earnings after Monday's closing bell. Yum! Brands (YUM, Fortune 500), owner of KFC, Taco Bell and Pizza Hut, is also on tap to post results later in the day.

World markets: European stocks fell in midday trading. Britain's FTSE 100 (UKX) slid 0.2%, the DAX (DAX) in Germany shed 0.3% and France's CAC 40 (CAC40) dropped 1.1%.

Asian markets ended mixed. The Shanghai Composite (SHCOMP) rose slightly and Japan's Nikkei (N225) added 1.1%, while the Hang Seng (HSI) in Hong Kong dipped 0.2%.

Currencies and commodities: The dollar rose against the euro, the British pound and the Japanese yen.

Oil for March delivery slipped 75 cents to $97.10 a barrel.

Gold futures for April delivery fell $18.15 to $1,719.40 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.94% from 1.95% late Friday.  To top of page

 

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