Greece's debts renew fears that end Dow's gains
NEW YORK - Stocks halted their steady climb yesterday after renewed concerns about Greece's ability to pay its debts left investors questioning a global economic recovery.
NEW YORK - Stocks halted their steady climb yesterday after renewed concerns about Greece's ability to pay its debts left investors questioning a global economic recovery.
The Dow Jones industrial average fell 37 points after advancing for eight straight days. Broader indexes also fell. Major indexes posted gains for the week.
Greece said it might need to turn to the International Monetary Fund for support if European leaders can't agree on a bailout plan next week. Worries about the country's ability to handle its massive debt load have set off periodic bouts of stock selling in the United States and overseas over the last two months.
Investors also were cautious after India's central bank raised interest rates to combat rising prices. That prompted concern that central banks in other countries would follow suit. Reports in the United States during the week signaled that inflation is minimal.
The news from Greece and India chilled an advance in U.S. stocks that grew out of rising optimism about a recovery.
"The economic data so far continues to be friendly, but there are a lot of concerns out there," said Peter Cardillo, chief market economist at the brokerage Avalon Partners Inc. in New York. "The Greek situation is affecting the dollar."
The dollar, regaining its appeal as a safe investment, rose against the euro and other currencies. Concerns remain that debt problems could spill over to other weak European countries like Spain and Portugal, Peter Cardillo, chief market economist at the brokerage Avalon Partners Inc. in New York, said.
Stocks in the United States have been rising since a January-February slump. Investors are encouraged that the economy is getting better, even if it's at a slow pace. The modest improvements have translated into a stock market that creeps higher rather than leaps as it did last year. Still, even with incremental gains, some analysts warn that the market needs some pullbacks to avoid getting overheated.
The Dow fell 37.19, or 0.4 percent, to 10,741.98. The Standard & Poor's 500 index fell 5.92, or 0.5 percent, to 1,159.90. The Nasdaq composite index fell 16.87, or 0.7 percent, to 2,374.41.
The Dow on Thursday closed at its highest level since Oct. 1, 2008. Broader indexes are in a similar range so the retreat yesterday wasn't surprising. Many traders like to sell some of their stronger holdings when the market pushes to new highs.
A planned House vote tomorrow on a proposed health-care overhaul also made investors more uncertain, though many health stocks rose.
Among health stocks, UnitedHealth Group Inc. rose 80 cents, or 2.4 percent, to $34.39, while Cigna Corp., of Philadelphia, rose $1.24, or 3.5 percent, to $37.08.
In other trading, Palm Inc. tumbled after reporting a wider-than-expected quarterly loss late Thursday. The maker of handheld devices also forecast revenue for the current quarter that was less than half of what analysts had predicted. Competition from iPhones and BlackBerrys is hurting the company's business. The stock fell $1.65, or 29.2 percent, to $4.
The Russell 2000 index of smaller companies fell 7.72, or 1.1 percent, to 673.89.
Tides of March
The Dow Jones industrial average is making mostly small moves this month, but total March gain is a solid 4 percent.
Date Point change
March 1 +78.53
March 2 +2.19
March 3 -9.22
March 4 +47.38
March 5 +122.06
March 8 -13.68
March 9 +11.86
March 10 +2.95
March 11 +44.51
March 12 +12.85
March 15 +17.46
March 16 +43.83
March 17 +47.69
March 18 +45.50
Yesterday -37.19
Month to date +416.72
SOURCES: Inquirer research, Bloomberg News
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