CLOSING BELL: October 2nd: DJIA: 13,482.36 | DOWN 32.75 | -0.24%
OIL: $91.89 DOWN 0.59, -0.64%
GOLD: $1,775.60, DOWN 7.70, -0.43%
GASOLINE (US Avg): $3.780, DOWN 0.002
Angela Moon, Reuters – Wall Street ended little changed in a volatile session on Tuesday as uncertainty over when Spain might apply for a bailout shackled a market struggling to build on gains that took the S&P 500 to its highest in nearly five years.
The market was also hamstrung by concerns about the upcoming reporting period that kicks into full gear next week.
The Dow was pressured by stocks closely tied to the pace of growth, including Caterpillar Inc (CAT.N) and Boeing Co (BA.N). A major headwind for the economy has been declining demand from Europe, which has been drifting toward recession.
Spanish Prime Minister Mariano Rajoy said a request for European aid was not imminent following a report the country could apply for help soon. Germany has signaled that Madrid should hold off on making its request, according to European officials on Monday.
“The market is reacting more to the (Spain) news because it wants to consolidate after a pretty good run. The market is making this news even bigger than it really is just to make it an excuse to sell,” said Frank Gretz, market analyst at Wellington Shields & Co in New York.
The S&P rose nearly 6 percent in the third quarter, lifted by accommodative moves by the Federal Reserve and European Central Bank, which market participants bet would boost flagging growth.
If Madrid were to seek a rescue, it would trigger European Central Bank buying of its bonds and help to ease U.S. investors’ nervousness about impact of the euro zone’s debt crisis on the U.S. economy.
Read the full story at Reuters [here]
The Common Good publishes a financial market wrap-up every weekday after markets close, available here.