A trader works on the floor of the New York Stock Exchange on June 23, 2011 in New York. Photographer: Spencer Platt/Getty ImagesUS stocks fell this week, giving the Standard & Poor 500 Index its seventh loss in eight weeks, in the concern that the European debt crisis is not contained.
JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC) fell at least 1.5% after European Central Bank President Jean-Claude Trichet said on June 22, that the crisis threatens to infect banks. Micron Technology Inc. (MU) sank 7.9%, mostly in the & S P 500 after the Declaration of income and profits that missed analysts forecasts. Red Hat Inc. (RHT), the largest vendor of operating system Linux, jumped 9.3% after beating estimates with its earnings forecasts.
The & S P 500 fell 0.2% to 1,268.45 and dropped three consecutive days at the end of the week. The measure fell by 7 percent since April 29. The Dow Jones Industrial Average fell 69.78 or 0.6%, to 11,934.58 points this week.
"Everyone is looking to digest the European debt situation is going to shake,", said Jason Pride, Director of Glenmede Philadelphia investment strategy, which manages approximately $ 20 billion. "They play a costly game of chicken with the Greece because the inconvenience of passing is not a bailout for the country plan is indeed a collapse of the financial system.".
Equities is fell after Investors Service of Moody said, on 23 June, that it may downgrade 13 Italian lenders because they would be vulnerable to a decline in the Government's credit rating. Bonds rose in Spain and Italy. He said signals of risk for financial stability in the euro area are blinking "red", as the debt crisis in countries such as the Greece threat of infecting banks around the region.
"On a personal basis I would say yes,"this is red"," Trichet said June 22 in Frankfurt, after a meeting of the European systemic risk Board, referring to planned flight "" giving group to monitor risks. "The message of the Council is that" the relationship between banks and the problems of the debt "is the most serious threat to financial stability in the European Union."
The & S P 500 has fallen since the escalation to a maximum of almost three years, on 29 April, in the concern of the sovereign debt crisis and the economic data lower than estimates of Europe. The tonnage of reference for us stocks increased by 0.9% this year.
The Chicago Board Options Exchange volatility Index, which measures the cost of the use of options such as an insurance against declines in the & S P 500 fell 3.4% 21.10, reduce three consecutive weeks of gains.
US stocks shares rose the most since April 21 June in investor optimism that a vote of confidence to the Greek Prime Minister George Papandreou is to determine how long the nation can win international support to consolidate its finances. Yesterday, the leaders of the European Union is committed to support the Greece if the nation approves austerity measures.
Data from the United States.
Officials of the Federal Reserve lowered their forecasts on 22 June for growth and employment in 2011 and 2012, the projection of the economy will grow 2.7 to 2.9% this year, down from 3.1% to 3.3% in April projection. Central bankers said U.S. inflation, excluding food and energy will be a little higher than previously forecast. They said that the pace of recovery is likely to "pick up over the next few quarters."
Purchases of new U.S. homes fell in may for the first time in three months, showing that the industry is struggling to grow. Sales fell by 2.1% to an annual 319,000 pace last month, the Commerce Department figures showed 23 June.
Index Bank KBW, which tracks 24 companies, declined 2.4 percent this week. JPMorgan, the second largest US Bank by assets, fell by 3.2% to $39.49. Bank of America, the largest U.S. lender by assets, fell by 1.5% to $10.52.
Micron fell 7.9% to $7,21 as the major manufacturer of chips U.S. memory the computer reported revenues and profits that drops below the forecasts of analysts.
The price of dynamic random access memory, or DRAM, to personal computers increased diablo² as supplies and demand for portable consumer and desktop PC manufacturers remained sluggish, the company said. Orders are also slow for chips used in inexpensive mobile phones, pushing towards the low price, said Micron, Chief Executive Steve Appleton.
Walgreen Co. (WAG) collapsed 7.3% to $41.39, helping to send the S & P 500 Staples index consumption decrease of 1.7%, the most among the 10 groups. The largest pharmacy chain U.S. said that he did not renew a contract of more than $ 5 billion in annual sales with Manager of pharmaceutical benefits Express Inc. of Scripts, after negotiations collapsed. The agreement will end on January 1.
Procter & Gamble Co. (PG), most big company consumer in the world, fell by 3.3% to $62.59 for the second largest decline in the Dow average.
Boeing Co. (BA) decreased the most in the Dow, sliding from 3.9% to $71.26. American Airlines AMR s Corp is in talks with Airbus SAS on the purchase of at least 100 aircraft of narrow fuselage, a possible break his confidence for a long time on Boeing jets, said two people familiar with the case.
Energy companies in the S & P 500 dropped 1.4 per cent in group a, the second largest weekly loss, as the crude oil for August delivery fell to $91.16 a barrel in New York after the International Energy Agency, June 23, has announced the release of 60 million barrels. Exxon Mobil Corp. (XOM), company of greater energy in the world by market value, withdrew to 2.8 per cent to $76.78. Chevron Corp. (CLC), the second largest oil company U.S. decreased by 1.3% to $97.90.
Red Hat has risen from 9.3% to $45.03, most in the S & P 500, after it said profits for the year 2012 will be as much as $1 a share, beating the average analyst estimate of 96 cents per share from a survey of Bloomberg.
CarMax Inc. (KMX), the largest seller of cars U.S., reached 9.2% $31.93 after first-quarter sales of used cars rose by 7.5% to 108,511 the same period a year earlier. Income net increased by 25% to 55 cents per share, compared to the forecast of average profit of 47 cents per share in a survey of 13 analysts Bloomberg.
The S & P 500 materials Index (S5MATR), which tracks 30 companies, have increased by 2.4%, the most among the 10 groups. Chemical manufacturer DuPont Co. jumped 4.8% to $51.96, Caterpillar Inc. (CAT), more than material construction manufacturer, increased from 4.2% to $100.01 and Alcoa Inc. (AA), the U.S. aluminium producer, added 3.5 per cent to $15.23.
To contact the reporters on this story: Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net. Cecile Vannucci in New York at the cvannucci1@bloomberg.net
To contact the responsible editor of the story: Nick Baker at the nbaker7@bloomberg.net
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