Fears Of Debt Drag Dow Below 10,000

Posted on 08. Feb, 2010 by PublicWire   

The Dow Jones industrial average ended Monday’s session below 10,000 for the first time in three months. The Dow was dragged down by investors’ fears that mounting debt on the other side of the Atlantic will slow the U.S. economic recovery.

The Dow tumbled points 103.84, or 1.04%, to end the day at 9,908.9. The last time the Dow industrials finished below 10,000 was November 4, 2009. The S&P 500 index (SPX) lost 9.45 points, or 0.89%. The Nasdaq composite shed 15.07 points, or 0.70%.

The major indexes have been on the decline for four weeks in a row as investors wait for evidence that the seeds of recovery are really taking hold. Stocks tumbled toward the end of last week amid fears that Greece might default on its debt, which could trigger defaults in other European nations, including Portugal, Ireland, Italy and Spain. Those same concerns last week battered the euro while strengthening the dollar.

Commodities & The Dollar

The euro strengthened Monday, trading at 1.3653 against the U.S. dollar, as the greenback gained against the yen. Commodity prices also rallied, with COMEX gold for April delivery rising $13.40 to settle at $1,066.20 an ounce. U.S. light crude oil for March delivery rose 70 cents to settle at $71.89 a barrel on the New York Mercantile Exchange.

On The Move

The Home Depot (HD) closed up 0.61, or 2.18%, at $28.59 a share after Morgan Stanley reportedly upgraded the Dow component to “overweight” from “equal-weight.” Morgan Stanley said The Home Depot will benefit from a recovering housing market. The construction superstore was one of just two components to end Monday higher. Hewlett-Packard (HPQ) ended the session 0.27 higher, or 0.57%, at $47.59.