Materials lead WS slide on euro-debt woes
Sunday, 28 November 2010
NEW YORK, Nov 27 (Reuters): Commodity-related shares led US stocks lower Friday in a shortened post-holiday session as investors unloaded risky assets on worries that euro-zone debt problems may spread.
Consumer stocks were also a major focus as Black Friday, often the biggest shopping day of the year, began what is expected to be the strongest holiday shopping season in three years.
While strong sales on Black Friday, when many retailers move into the black, could give a boost to stocks next week, Europe's shaky finances may temper any gains.
The US dollar rallied while the euro slid to a new two-month low amid fears that Portugal and Spain could follow Ireland in needing bailouts to shore up their economies.
The S&P materials index (.GSPM) dropped 1.2 per cent as key base metals prices fell, pressured by the advancing greenback and after the Shanghai Futures Exchange raised margin requirements, prompting liquidation of speculative positions.
Freeport McMoRan Copper & Gold (FCX.N) dropped 2.6 per cent to $98.07.
"There are concerns from euro land, and sharp selloffs in large European banks kind of set the tone for the day," said Steve Goldman, market strategist at Weeden & Co in Greenwich, Connecticut.
The S&P financial index (.GSPF) fell 1.1 per cent, with Bank of America (BAC.N) down 1.2 per cent at $11.14.
The Dow Jones industrial average (.DJI) dropped 95.28 points, or 0.85 per cent, to end at 11,092. The Standard & Poor's 500 (.SPX) slipped 8.95 points, or 0.75 per cent, to 1,189.40. The Nasdaq Composite (.IXIC) lost 8.56 points, or 0.34 per cent, to 2,534.56.
For the week, the Dow dropped 1 per cent and the S&P 500 fell 0.86 per cent, but the Nasdaq Composite gained 0.65 per cent. US markets were closed Thursday for Thanksgiving Day.
Investors were further rattled Friday after China warned against military acts near its coastline ahead of US-South Korean naval exercises. Earlier, North Korea had said those naval drills risked pushing the region toward war. The North shelled a South Korean island Tuesday.
Retail shares were sluggish despite the upbeat sentiment over Black Friday. Discount retailers Wal-Mart Stores Inc (WMT.N) fell 0.5 per cent to $53.74 and Target Corp (TGT.N) shed 0.6 per cent to $56.88.
But Macy's Inc (M.N), operator of its namesake retail chain and upscale Bloomingdale's, edged up 0.4 per cent to $26.
"The (Black Friday) data that has been leaking seems to be better than expected, and after two years of miserable performance at the malls, there seems to be some pent-up demand," Weeden & Co's Goldman said.
Consumer stocks were also a major focus as Black Friday, often the biggest shopping day of the year, began what is expected to be the strongest holiday shopping season in three years.
While strong sales on Black Friday, when many retailers move into the black, could give a boost to stocks next week, Europe's shaky finances may temper any gains.
The US dollar rallied while the euro slid to a new two-month low amid fears that Portugal and Spain could follow Ireland in needing bailouts to shore up their economies.
The S&P materials index (.GSPM) dropped 1.2 per cent as key base metals prices fell, pressured by the advancing greenback and after the Shanghai Futures Exchange raised margin requirements, prompting liquidation of speculative positions.
Freeport McMoRan Copper & Gold (FCX.N) dropped 2.6 per cent to $98.07.
"There are concerns from euro land, and sharp selloffs in large European banks kind of set the tone for the day," said Steve Goldman, market strategist at Weeden & Co in Greenwich, Connecticut.
The S&P financial index (.GSPF) fell 1.1 per cent, with Bank of America (BAC.N) down 1.2 per cent at $11.14.
The Dow Jones industrial average (.DJI) dropped 95.28 points, or 0.85 per cent, to end at 11,092. The Standard & Poor's 500 (.SPX) slipped 8.95 points, or 0.75 per cent, to 1,189.40. The Nasdaq Composite (.IXIC) lost 8.56 points, or 0.34 per cent, to 2,534.56.
For the week, the Dow dropped 1 per cent and the S&P 500 fell 0.86 per cent, but the Nasdaq Composite gained 0.65 per cent. US markets were closed Thursday for Thanksgiving Day.
Investors were further rattled Friday after China warned against military acts near its coastline ahead of US-South Korean naval exercises. Earlier, North Korea had said those naval drills risked pushing the region toward war. The North shelled a South Korean island Tuesday.
Retail shares were sluggish despite the upbeat sentiment over Black Friday. Discount retailers Wal-Mart Stores Inc (WMT.N) fell 0.5 per cent to $53.74 and Target Corp (TGT.N) shed 0.6 per cent to $56.88.
But Macy's Inc (M.N), operator of its namesake retail chain and upscale Bloomingdale's, edged up 0.4 per cent to $26.
"The (Black Friday) data that has been leaking seems to be better than expected, and after two years of miserable performance at the malls, there seems to be some pent-up demand," Weeden & Co's Goldman said.