Mark Luschini, chief investment strategist at Janney Montgomery Scott stated that US stocks on Wednesday took their hit in two weeks on a fatal combination of anxiety about Europe’s debt issues and data illustrating a slower US economy. All the worldwide issues are hitting the market around because we are in the corporate news void.
Unrest in Greece upset the global financial markets on Wednesday. Stocks declined the most since June 1 as investors heaped into lower-risk assets like the dollar and US government bonds.
Thousands of people assembled on the streets of Athens to complaint government decrease necessary by international lenders. Protesters threw rocks at riot police, who reacted with tear gas. Greece’s prime minister announced that he would name a new Cabinet after discussions to form a new government with competitive parties
The Office of the Comptroller of the Currency forced the civil punishment after finding that Chase Auto Finance dishonored federal law related to the sale of a protection plan called as “Chase Payment Assurance.”
The Dow Jones Industrial Average DJIA (INDEXDJX:.DJI) on Wednesday closed down at -178.84 points or -1.48% to 11,897.27. It had declined over 200 points during the session. .
All 30 of the blue-chip index’s components lost ground. Top of the list was by aluminum producer Alcoa Inc. (NYSE:AA) and Bank of America Corporation (NYSE:BAC) both declined -2.92%,-2.78% respectively.
Dow Jones Newswires stated on Wednesday that the state wants help from the International Monetary Fund for a new plan “to inflict important losses on senior bond holders in Anglo Irish Bank Corp. and Irish Nationwide Building Society, the country’s two most concerned lenders.
A federal bank controller announced that it fined a JP Morgan unit $2 million for using high-pressure sales strategy and making wrong statements in the promotion of a credit-protection product sold by its car loan division.
Shares of Bank of America Corporation (NYSE:BAC) and JPMorgan Chase & Co. (NYSE:JPM) fell more than 2% Wednesday, heavily effecting on the Dow Jones Industrial Average. Downbeat US economic data and rising debt crisis in Europe weigh on shares and news that Ireland’s finance minister is appearing to make debt holders in Allied Irish Banks take a loss on its recovery added pressure.
David Kelly, chief market strategist at J.P. Morgan Funds suggested that there are lawful doubts about Greece. It’s not unsolvable but it requires broader thinking than European leaders are showing now.
The Standard & Poor’s 500 Index dropped 22.45 points, or 1.7%, to 1,265.42, with natural-resource companies hit the hardest among its 10 industry groups.
Among the top advancers of Wednesday trading session included Novellus Systems, Inc. (NASDAQ:NVLS) with $1.15 or 3.36% to 35.34. Besides Novellus system, a healthcare company Boston Scientific Corporation (NYSE:BSX) gained a prominent position among the top advancers 19 cents or 2.82% to 6.93.
Boston Scientific Corp. (BSX) had the biggest gain since May 25. The second-biggest manufacturer of heart devices boosted after Johnson & Johnson (NYSE:JNJ) decided to halt making Cypher drug-coated heart stents and finish the development of a new model in a restructuring that will shut down two factories and reduce as many as 1,000 jobs. JNJ fell 1.4% to $66.16.
Tuesday trading session top gainer of S&P index, J.C. Penney Company, Inc. (NYSE:JCP) lost its ground on Wednesday trading. JCP declined -3.5% to $34.12, the biggest downfall since June 1. Reported by JC Penney, the third-largest US department store chain has income risk over the next many quarters because of low market share, high inventory cost and the inability to elevate prices in a cost inflationary environment.
The NASDAQ Composite Index (NASDAQ:.IXIC), lost -47.26 points or -1.76% to 2631.46.
Strategists targeted US economic reports as the primary offender for equities, investors were thinking that the trend of bearish data would carry on, depressing corporate earnings.
Luschini at Janney Montgomery Scott stated that we are in the middle of this spongy economic data that is not looking to turn around anytime soon.
Elliot Spar, a market strategist at Stifel Nicolaus reported that don’t try to guilt the Greek situation, it’s the economy.
Gainers were led by Sino Clean Energy Inc. (NASDAQ:SCEI) gained 39 cents or +30.23% to 1.68.
Among the decliners Majesco Entertainment Co. (NASDAQ:COOL), Toreador Resources Corporation (NASDAQ:TRGL), Capstone Turbine Corporation (NASDAQ:CPST) declined -20.16% and – 17.20% respectively.
At New York Mercantile, gold gained +0.13% or +2.00 and it settled at $1528.00 per ounce and silver gained +0.18% or +0.065 to reach $35.16 per ounce on electronic trading.
However crude oil at New York gained +0.36% or +0.34 to close at $95.15 on E trading for the first time since February, with the agreement for July delivery sliding $4.56 to end at $94.81 a barrel.