CLOSING BELL: July 23: DJIA: 12,721.50 | DOWN 101.11 | -0.79%
OIL: $88.14, DOWN 3.69, -4.02%
GOLD: $1,577.40, DOWN 5.40, -0.34%
GASOLINE (US Avg): $3.471, UP .040
Emily Jane Fox, CNN Money - Stocks pared losses on Monday, but all three indexes still closed lower as worries that Spain may need a full-blown bailout sparked a global sell-off.
“There seems to be a pattern whereby markets sell hard into the close of European markets and then see some relief,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott. “Despite the comeback, Europe will continue to waffle the markets. It’s all predicated on whether anything will be done to triage Spain’s duress.”
U.S. stocks remained under pressure as markets closed. The Dow Jones industrial average (INDU) sank 101 points, or 0.8%, after earlier shedding more than 220 points earlier. The S&P 500 (SPX) dropped 12 points, or 0.9%, and the Nasdaq (COMP) lost 35 points, or 1.2%.
The selling was widespread, with oil prices tumbling 4% and copper prices skidding 3.3%. The euro weakened further, falling as low as $1.207.
Investors flocked to traditional safe havens, such as U.S. Treasuries, where the 10-year yield hit a fresh record low of 1.395%. The German 10-year yield also fell to a record low of 1.127%.
Fears over the debt crisis plaguing Europe pushed the yield on the 10-year Spanish bond up to a euro-area record high of 7.565% — a level that flashes the first bailout signals and one that Spain’s leaders have said is unsustainable.
Securities regulators in Spain and Italy both instituted temporary short-selling bans Monday to try to stop the heavy selling in European markets.
Eurozone finance ministers finalized initial bailout terms for Spanish banks last week, but observers fear that may not be enough. Spain’s regional economies are also showing signs of struggle, with Valencia said to have requested emergency funding last Friday.
Read more at CNN Money here.
The Common Good publishes a financial market wrap-up every weekday after markets close, available here.