European Woes Crash the Dow

Before you go, we thought you'd like these...
Before you go close icon

And just yesterday, we were commenting in this space how the market resiliently shook off Spain's deteriorating financial situation, weakening consumer confidence, and domestic housing data that, while not as terrible as anticipated, still qualifies as poor. Well, that was fun while it lasted.

Let's take a closer look at how the major indexes are fared and drill down on a few stocks making headlines.

Index

Gain / Loss

Gain / Loss %

Ending Value

Dow Jones Industrial Average (INDEX: ^DJI) (160.83)(1.28%)12,419.86
Nasdaq(33.63)(1.17%)2,837.36
S&P 500(19.10)(1.43%)1,313.32

Source: Yahoo! Finance.


Stocks across the board were hammered, as borrowing costs for Italy and Spain jumped overnight, the euro hit nearly a two-year low versus the dollar, and Treasury yields sank as investors fled toward safe assets. Unsurprisingly, commodities and banking took the brunt of it. On the Dow, ExxonMobil and Chevron both saw 2.6% declines as oil fell 3.7% down to $87 per barrel. Declining oil prices can have an outside effect on small players like ATP Oil & Gas (NAS: ATPG) , which saw shares shed more than 4% of their value, or even hopeful liquefied natural gas exporter Cheniere (ASE: LNG) , as its investors witnessed an 8% decline.

Dow banking components JPMorgan Chase and Bank of America (NYS: BAC) were down 2% and 3%, respectively, in line with Spain's Banco Santander (NYS: STD) and its 2.6% decline. While that may seem bizarre since Santander is at the epicenter of a brewing crisis, shares of the Spanish company have lost a quarter of their value so far in 2012, while B of A and JPMorgan are both up year to date.

As the week continues, a boatload of economic data will be released, including new unemployment numbers and GDP estimates tomorrow, so expect volatility to return as May draws to a close.

In the meantime, I urge you to download our newest special free report: "These Stocks Could Skyrocket After the 2012 Presidential Election." Barack Obama and Mitt Romney have competing visions for getting America back on track, but The Motley Fool will have you prepared to profit -- no matter who wins! Download your copy now, for free, and discover unique ways to profit from the election -- if you buy the right stocks before the next president's term begins.

At the time this article was published David Williamsonowns shares of ATP Oil & Gas, but he holds no other position in any company mentioned. Check out hisholdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Chevron. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners