Same sad story on stocks: Last hour of trading erases day's gains
Once again, a final-hour sell-off wasted a nice day of solid gains, as stocks plummeted into the red again, despite encouraging economic news from the Fed Reserve and its chairman.
Stocks evidently are unable to tolerate success and could not extend a modest two-day winning streak.
The big loser? Embattled oil giant BP, whose shares hit a 14-year low after trading at four times normal volume. BP closed down a whopping 16 percent at under $30. The company has lost half of its value since the oil spill began in April. Yes, half.
The Dow closed down four-tenths of 1 percent at 9,899.25. The Dow is now down 2.3 percent in June and 5 percent year-to-date.
The broader S&P 500 closed down six-tenths of 1 percent at 1,055.65.
The tech-heavy Nasdaq closed down half of 1 percent at 2,158.85.
Earlier this afternoon, the Fed said that the economic recovery is spreading, albeit slowly, across the country. In testimony before Congress, Fed Chairman Ben Bernanke warned that the United States needs to get its debt house in order or else wind up like Europe, but he largely gave a hopeful picture of the recovery going forward.
Oil closed up nearly 3 percent at almost $74 per barrel, and gold eased back off its historic high hit yesterday, closing down 1 percent about $1,229.
The euro, which played a part in U.S. trading all day, rose slightly but is still selling for less than $1.20.
Stocks were also hurt later in the day by German Chancellor Angela Merkel saying that now is the time for world governments to start withdrawing stimulus.
June 9, 2010; 4:01 PM ET
Categories: Data , Wall Street
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Posted by: Claudius2 | June 9, 2010 4:34 PM | Report abuse
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