business
U.S. stocks fall for 4th session in a row
- Article by: KATE GIBSON , MarketWatch
- Updated: July 10, 2012 - 8:43 PM
Concerns about industrials and Europe's outlook added to a slump in the indexes.
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NEW YORK - U.S. stocks fell for a fourth session Tuesday as the U.S. dollar advanced on uncertainty over Europe, and engine maker Cummins Inc. reduced its sales forecast, adding to concerns about second-quarter earnings.
"Industrials are getting hammered here," said Jack Ablin, chief investment officer at Harris Private Bank, who chalked up the intensified losses to Cummins' reduced outlook.
The Dow Jones industrial average shed 83.17 points, or 0.7 percent, to 12,653.12, led by a 4.1 percent drop in Alcoa Inc. shares after the aluminum producer said late Monday it swung to a second-quarter loss.
The S&P 500 index fell 10.99 points, or 0.8 percent, to 1,341.47. Both the Dow and S&P 500 have fallen for four straight sessions.
Cummins shares dropped 8.9 percent after the maker of natural-gas engines forecast flat revenue this year, instead of a prior forecast of 10 percent growth. It blamed a slowdown in the global economy.
Concern about technology earnings also weighed on investor sentiment. Advanced Micro Devices Inc. shares fell 11 percent, the S&P 500's worst, after the maker of processors for personal computers reported an unexpected drop in sales.
Applied Materials Inc. slid 2.7 percent after the maker of equipment for chip manufacturers reduced its fiscal-year profit and sales projections.
The Nasdaq composite shed 29.44 points, or 1 percent, to 2,902.33, its third session in the red.
The dollar rose against other global currencies including the euro, against which it hit a two-year high, after a German court and Italy's prime minister added to uncertainty about the eurozone's bailout fund.
"One of the things we're fighting against in the near term is the firming dollar. We've seen that have two effects -- commodity prices go down and unfortunately stock prices do as well," said Art Hogan, a managing director at Lazard Capital Markets.
"Close to 20 percent of the S&P 500 are directly related to commodity prices," Hogan said.
Oil for August delivery fell 2.4 percent to $83.91 a barrel after Norway intervened to halt a labor dispute that threatened its North Sea production and China released economic data illustrating a roughly 6 percent rise in June imports, down from the prior month and less than analysts expected.
U.S. stocks had started the session higher after European leaders moved to bolster Spain's banks, saying they would provide as much as 100 billion euros ($123 billion) in rescue loans to protect one of the euro area's larger economies.
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