Euro Jumps After Spanish Aid Talks but US Stocks Retreat (HPQ, AIG)
US stocks fell on Thursday as the Dow headed towards its biggest drop of the month. Both the S&P 500 and Nasdaq saw declines as well. In Europe, the euro soared to a seven-week high after a report that Spain may seek a bailout. French and German leaders also met today to discuss their plans to tackle the crisis. Some good news from the US was released with unemployment applications up slightly for the past week and new-home sales reportedly jumping 26% in July. Boeing Co. (BA) saw shares drop after a large cancellation from Qantas Airways Ltd. After yesterday's disappointing news from HP (HPQ), the company has seen its largest drop in shares since one year ago.Skepticism continues in the markets as investors become less certain about the Fed's intentions and plans for the near future.
Word on the Street
- The Fed sells the remainder of securities taken on during the 2008 AIG (AIG) bailout.
- The amount of applications for first-time unemployment benefits was up slightly last week.
- The euro has hit a seven-week high against the US dollar after report of Spanish aid talks.
- Along with others, UBS urges the SEC to reject Nasdaq's proposal for customer compensation from Facebook's (FB) IPO.
- French and German leaders meet to discuss the continuing euro zone crisis.
- Citigroup (C) to withdraw $500 million from Paulson & Co's Advantage funds.
- China sees manufacturing activity fall to a nine-month low, struggling with effects of global debt crisis.
- Chico's FAS (CHS) Surges on Record Earnings.
Published on Aug 23, 2012By InvestorGuide Staff