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U.S. Stocks Firmly Lower As EU Fears Begin To Wane

By  |  Stock Markets  |  Mar 18, 2013 08:02PM GMT  |   Add a Comment
www.investing.com/analysis/u.s.-stocks-firmly-lower-as-eu-fears-begin-to-wane-159458
U.S. Stocks Firmly Lower As EU Fears Begin To Wane
By   |  Mar 18, 2013 08:02PM GMT
 

U.S. stocks finished mostly lower, Monday, trimming their earlier losses experienced after news hit that the European Union is considering a plan to impose a levy on bank deposits in Cyprus in order to provide a financial bailout to the country.

According to reports, the EU will require a one-time tax of 6.75% on bank deposits of less than 100,000 euros, and 9.9% tax for those over 100,000 euros, a move many are dubbing "legalized bank robbery." A vote on this bailout, originally scheduled sometime Monday, is said to have been pushed back, with debate continuing on the terms of the deal. By day's end, the Parliament had put off the vote for at least another day say its banks would remain closed through Thursday.

First Fear Then Calm
While the news caused some initial panic in the markets -- the Dow shed 100 points at opening bell -- fears of the potential fallout from Cypriot bailout request retreated as trading progressed. In a note, analysts at Barclays Capital commented that given the small size of Cyprus' economy it is unlikely that financial contagion will spread through the euro zone. The Cypriot economy makes up less than 0.5% of the euro zone's output. "We consider the likelihood of a bank run in other periphery countries to be limited, including in Greece," the analysts wrote in the report.

Stateside, the NAHB Housing Market Index, a gauge of home builder's confidence, registered a reading of 44, which was down from the prior month's reading of 46. Today's reading also missed the Briefing.com consensus which anticipated a 48. The 44 reading was the lowest since October.

Commodities finished mixed. Oil futures added 0.26% to close at $93.69 a barrel, while gold futures closed up 0.75% at $1,604.60 per ounce.

Here's Where The Markets Stood At Day's End

  • Dow Jones Industrial Average down 62.05 (-0.43%) to 14,452.06
  • S&P 500 down 8.60 (-0.55%) to 1,552.10
  • Nasdaq Composite Index down 11.48 (-0.35%) to 3,237.59
GLOBAL SENTIMENT
  • Nikkei 225 Index down 2.71%
  • Hang Seng Index down 2.00%
  • Shanghai China Composite Index down 1.69%
  • FTSE 100 Index down 0.55%
  • DAX down 1.03%
  • CAC 40 down 0.96%
UPSIDE MOVERS
  • (+) WILC, Climbed to a 52-week high of $6.90 after the company announced that Q4 sales increased 29.6% to US $20.5 million from Q4 2011. EPS share for Q4 were $0.18 compared to EPS of $0.06 in Q4 2011.
  • (+) JCP, Beaten down shares of discount retailer fly off the shelf after Oppenheimer said its store tours over the weekend suggested customers look to be reacting positively to the Joe Fresh launch on Friday, according to MarketWatch.
  • (+) FU, Stock jumps after company reports revenues of $24.0 million, up from $879,912 in the fourth quarter of 2011, with net income of $2,274,415 or $0.11 per share versus a net loss of$7.8 mln or $1.03 per share in 2011.
DOWNSIDE MOVERS
  • (-) ADVS, Software firm shares fall after the company says it completed its review of strategic alternatives. The company's board of directors said that it believes "it is in the best interests of the company and its shareholders to continue to execute on its strategic plan as an independent company."
  • (-) INCY, Shares are under pressure after the company was informed, last week, of a case of progressive multifocal leukoencephalopathy in a 75 year old male patient from the UK with myelofibrosis treated with the company's ruxolitinib.
  • (-) ENTR, Selling takes hold after company says it expects Q1 revenue between $74 mln to $76 mln,below its prior view of $79 mln to $81 mln and south of the Street view of $80 mln.
After Hours Stock News From MidnightTrader.

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