business
Stocks slide for 3rd straight session
- Article by: KATE GIBSON , MarketWatch
- Updated: July 9, 2012 - 9:00 PM
The Dow industrials have lost 207 points since late last week as news from Europe drags market.
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NEW YORK - U.S. stocks lost ground on Monday for a third session, the longest such streak in more than a month, after Spanish bond yields rose to levels viewed as unsustainable and ahead of earnings from Alcoa Inc.
The Dow Jones industrial average ended down 36.18 points, or 0.3 percent, at 12,736.29. It's lost more than 207 points in the past three sessions.
On Monday, DuPont and Caterpillar Inc. led decliners, while aviation manufacturer Boeing Co. was among the 15 blue-chip companies rising, up 0.5 percent after sealing a $7.2 billion deal with aircraft-leasing firm Air Lease Corp.
Alcoa Inc. ended slightly up; its earnings report came after trading ended. Alcoa's earnings were sharply down from a year ago, but edged past Wall Street's forecasts.
The aluminum maker's quarterly results mark the unofficial start of reporting for U.S. company earnings. But the second-quarter earnings season actually started a few weeks ago when AutoZone Inc. reported. The 25 S&P 500 companies to release results so far offer a "good proxy for the other 475 companies," according to Nick Raich, director of research at Key Private Bank in Cleveland.
"What we're seeing is rates of growth are slowing to about 9 percent. Those same companies reported 15 percent growth last quarter, so that's a significant slowing of growth," he said.
Of the 25 companies that have reported second-quarter results, 72 percent have lowered third-quarter estimates, compared with 44 percent that reduced expectations after reporting first-quarter results, Raich added.
On Friday, Dow component JPMorgan Chase & Co. reports, when Chief Executive Jamie Dimon will offer his best guess as to how much the bank lost in bad trades.
The S&P 500 index declined 2.22 points, or 0.2 percent, at 1,352.46, with natural-resource stocks the hardest hit and health care the best performing of its 10 industry groups. As with the Dow, the S&P 500 has fallen for three straight days, the first such streak since early June.
Shares of Visa Inc. and MasterCard Inc. fell after UBS AG downgraded the payment networks.
Amerigroup Corp. rallied 38 percent after WellPoint Inc. said it would acquire the managed health-care company for $4.9 billion in cash.
Apple Inc. stock climbed 1.3 percent after a Piper Jaffray analyst said the technology company could sell as many as 6 million mini-iPad tablets in the fourth quarter. Reports of a smaller-sized iPad have not been confirmed by Apple.
The Nasdaq composite index shed 5.56 points, or 0.2 percent, at 2,931.77.
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