The Joplin Globe, Joplin, MO

Business

June 28, 2013

Stocks fall in early trading, breaking 3-day rally

NEW YORK — U.S. stocks are slipping in early trading Friday, breaking a three-day rally.

The Dow Jones industrial average was down 87 points, or 0.6 percent, to 14,937 at 10:30 a.m. Eastern Daylight Time. IBM led the Dow lower with a loss of $4.56, or 2.4 percent, to $191.09.

The Standard & Poor’s 500 stock index was down five points, or 0.4 percent, to 1,607. Eight of the 10 industry groups in the index fell. Technology stocks fell the most, 1 percent.

The Dow gained 365 points over the previous three days as investors jumped back into the market following a slump last week. That’s when Federal Reserve Chairman Ben Bernanke said that the central bank could begin scaling back on its economic stimulus program later this year.

The S&P 500 is headed for its first monthly loss since October. But the index is still on track to end June with the best first half of a year since 1998, when it gained 17.7 percent, including dividends. The index has gained 13.8 percent so far this year.

The Nasdaq composite index was down nine points, or 0.3 percent, to 3,393.

The yield on the 10-year Treasury note rose to 2.52 percent from 2.47 percent late Thursday. Last month, the yield fell as low as 1.63 percent. Treasury yields help set borrowing costs for a range of consumer and business loans.

In commodities trading, gold fell $13 to $1,198 an ounce. The price of crude oil slipped 13 cents to $96.92 a barrel. The dollar rose against the euro and the Japanese yen.

Among stocks making big moves:

— BlackBerry maker Research In Motion plunged $4.18, or 28 percent, to $10.83 after the company posted a surprise loss in the first quarter and warned of future losses despite releasing its make-or-break smartphones this year. The company also discontinued making new versions of its slow-selling tablet device, The Playbook.

— Accenture fell $10.98, or 14 percent, to $69.30. The consulting firm cut its revenue and profit outlook for its fiscal year ending in August. Revenue was hurt by lower demand in Europe as well as its communications, media and technology division.

— Nike fell $1.85, or 3 percent, to $60.47 after the athletic shoe and clothing company slightly lowered its 2014 earnings forecast.

In overseas trading, Japanese stocks rose on news that a key consumer price index stopped falling for the first time in seven months, a sign that the world’s third-largest economy is making progress in its battle against deflation. The government also reported that industrial production rose 2 percent, a fourth straight monthly increase. The benchmark Nikkei 225 rose 3.5 percent.

 

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