The Dow's Worst Day of 2012
The Dow Jones Industrial Average (INDEX: ^DJI) had its worst day of this year as no deal arose for the Greek austerity measures and bailout package.
|Dow Jones Industrial Average||-89.23 [-0.69%]||12,801.23|
|S&P 500 (INDEX: ^GSPC)||-9.31 [-0.69%]||1,342.64|
The Dow opened down as European leaders asked for more budget cuts from Greece before signing a second bailout. Eurozone leaders also are requiring that Greek lawmakers approve a budgetary reform package in parliament that includes pension cuts, improved tax collection, and sales of state assets. A vote is expected by the Greek parliament on Sunday.
The Greek bailout discussions have been ongoing for some time now as Greece tries to avoid defaulting on 14 billion euros in bonds due in March. Greece has 330 billion euros in aggregate debt. Investors are worried that if conditions in Greece and the rest of Europe continue to worsen, the U.S. will also experience a slowdown in growth. While Bernanke has vowed that the Fed will protect the U.S. financial system, a U.S. slowdown is still a possibility.
With the Greek debt deal in continued turmoil, 29 of the 30 Dow components finished down for the day. Home Depot (NYS: HD) was the lone bright spot, finishing up $0.06 (0.13%) to $45.33. There was no particular news that caused Home Depot to finish up for the day, but maybe the stock is still reacting to the Whitehouse Science Fair Marshmallow Cannon viral video, in which Home Depot was plugged by eighth-grader Joey Hudy. Home Depot gave investors a good year in 2011 with two dividend raises and a $3 billion buyback. Fool analyst Dan Caplinger believes Home Depot could be a prime beneficiary of a resurgence in the housing market.
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At the time this article was published Dan Dzombakholds no position in any company mentioned.Click hereand like his Facebook page to follow his coverage of the oil and gas sector.Motley Fool newsletter serviceshave recommended buying shares of The Home Depot. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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