Skip to main content
  1. News
  2. Business & Finance
  3. Stock Market

Uncertainty in Greece hurts stocks on Monday

See also

The inability of political leaders in Greece to form a coalition government continues to stress both the European and American stock markets. Miami-based companies saw their stocks obtain mixed results on Monday.

Banks across Europe saw their stock values sink with the increasing likelihood that Greece could abandon the euro. The decline in European bank shares impacted Citigroup (C) and Bank of America (BAC). Meanwhile JPMorgan Chase (JPM) had problems of its own as heads began to roll following the firm’s $2 billion loss on the bad bets made by “The London Whale”, Bruno Iksil. JPM finished Monday’s trading session with a loss of 3.17 percent. For more about the situation faced by JPMorgan CEO, Jamie Dimon, you can read about it on my blog. The Financial Select Sector SPDR Exchange-Traded Fund (XLF) declined by 2.06 percent on Monday.

Beyond Greece, there were other troubling signals from Europe. Markit Economics reported that its Eurozone Composite Purchasing Managers’ Index for April dropped to 45.9 from 47.7 in March. A reading below 50 indicates economic contraction. Spain’s ten-year bond yield skyrocketed to 6.27 percent on Monday after briefly hitting a high of 6.31 percent. The nation’s banks are in the process of complying with an order by the Spanish government to cover their exposure to questionable real estate loans. The ongoing European sovereign debt crisis threatens the most important market for American exporters.

Italian bond yields increased after a bond auction which brought in 5.25 billion euros. The nation’s three-year bond was sold at an average 3.91 percent yield.

The Dow Jones Industrial Average fell by 125 points on Monday to close at 12,695 for a loss of 98 basis points (0.98 percent). The S&P 500 declined by 1.11 percent to finish at 1,338. The NASDAQ Composite dropped by 1.06 percent to end the day at 2,902.

With the exception of Carnival Cruise Lines (CCL) Miami-based corporations saw their stocks drop on Monday. Carnival advanced by 54 basis points (0.54 percent) to close at 31.63. Lennar (LEN) declined by 28 basis points (0.28 percent) to finish at 28.37. Ryder System (R) lost 1.77 percent to close at 44.42. Royal Caribbean (RCL) sank by 2.23 percent to end the day at 25.48.

The following companies will be playing “beat the number” on Tuesday, with the release of their quarterly earnings reports: Dick's Sporting Goods (DKS), Euroseas (ESEA), GSE Systems (GVP), Home Depot (HD), J C Penney Company (JCP), Parkervision (PRKR), Saks (SKS), Spanish Broadcasting System (SBSA), TJX Companies (TJX), Tumi Holdings (TUMI) and Valspar (VAL). Good luck!

Comments

Advertisement

News

  • Baseball Hall of Fame
    The Baseball Hall of Fame in Cooperstown welcomes six new inductees
    Video
    Video
  • 2012 do-over
    If we were to re-do the 2012 election, a new poll suggests Romney would win
    Politics
  • Boko Haram
    Boko Haram kidnaps the wife of the vice prime minister of Cameroon
    World News
  • Ceasefire breaks
    Israel's Benjamin Netanyahu claims Hamas broke another brief ceasefire
    Gaza
  • Close call with CME
    Scientists tell how Earth survived a giant solar flare back in 2012
    Space
  • Comic-Con
    What's going on at Comic-Con? Get all the latest updates here
    Comic-Con