The Norman Transcript

Nation/World

October 9, 2012

Stocks lower on weak outlook for economy

NORMAN — Investors looked warily at forecasts for poor U.S. corporate earnings and weaker growth in Asia and decided there wasn’t much reason to buy stocks.

The Dow Jones industrial average gave up 26.50 points to close at 13,583.65 points Monday. The Standard & Poor’s 500 index fell 5.05 points to 1,455.88 and the Nasdaq composite lost 23.84 points to 3,112.35.

Companies in the S&P 500 index are expected to post an overall decline in profits for the first time in 11 quarters, according to FactSet. The third-quarter earnings season starts today when aluminum maker Alcoa releases its results.

Today also marks the five-year anniversary of the record high closes of the Dow and the S&P 500. The S&P, a benchmark tracked by many mutual funds, is currently about 7 percent below its record high. The Dow is about 4 percent below its peak.

Stocks have been on a strong run, with the Dow up 11 percent this year, the S&P 500 nearly 16 percent. But Asia’s slowdown, Europe’s problems, and now forecasts of weak U.S. corporate earnings have caused some investors to wonder whether the stock market has risen too far, too fast.

On top of those concerns, some market leaders like Apple have been falling in recent days, noted Bob Pavlik, chief market strategist at Banyan Partners LLC.

Apple closed above $700 on Sept. 18, but has been declining since then. On Monday it fell $14.42 to $638.17.

Also on Monday, the World Bank warned that a “more pronounced slowdown” is possible in China, the world’s second-largest economy. It also cut its overall growth forecast for developing countries in Asia.

Slower growth in Asia could drag down the U.S. economy. One of the few bright points for the U.S. during the recession was tremendous growth in export demand by developing nations in Asia and other regions.

For local news and more, subscribe to The Norman Transcript Smart Edition, or our print edition.

1
Text Only | Photo Reprints
Nation/World
  • Traps set in New Jersey lake while animal control searches for snake

    JEFFERSON, N.J. — Reports of a 16-foot-long exotic snake — possibly an anaconda — slithering through New Jersey’s largest lake have stoked fears among residents and led to searches and questions about what exactly is in the water....

    July 23, 2014

  • Airlines cancel air traffic after rocket attack

    JERUSALEM — A Hamas rocket exploded Tuesday near Israel’s main airport, prompting a ban on flights from the U.S. and many from Europe and Canada as aviation authorities responded to the shock of seeing a civilian jetliner shot down over ...

    July 23, 2014

  • Remains of victims from Malaysian airliner crash transported by train to Ukrainian controlled territory

    KHARKIV, Ukraine — A train bearing the dead from the downed Malaysian airliner reached Ukrainian government-held territory at long last Tuesday, but the pro-Russian separatists in control of the crash site showed little willingness to ...

    July 23, 2014

  • Contrarian’s case: Why the U.S. could be dragged down by struggling world economies?

    NEW YORK — Just as the U.S. economy is strengthening, other countries are threatening to drag it down....

    July 23, 2014

  • Dueling rulings: Courts split on health law

    WASHINGTON — President Barack Obama’s health care law is snarled in another big legal battle, with two federal appeals courts issuing contradictory rulings on a key financing issue within hours of each other Tuesday....

    July 23, 2014

  • Obama nominee pledges to ‘transform’ VA

    WASHINGTON — President Barack Obama’s choice to lead the Department of Veterans Affairs pledged Tuesday to transform the beleaguered agency, saying that “systematic failures” must be addressed....

    July 23, 2014

  • Friend is first convicted in Boston Marathon probe

    BOSTON — The conviction of a friend of Boston Marathon bombing suspect Dzhokhar Tsarnaev for impeding the investigation into the bombings has his lawyers wondering if anyone else who faces charges connected to the 2013 attack stands a ...

    July 23, 2014

  • Rebels release train with bodies from jet

    HRABOVE, Ukraine — Bowing to international pressure, pro-Moscow separatists released a train packed with bodies and handed over the black boxes from the downed Malaysia Airlines plane, four days after it plunged into rebel-held eastern ...

    July 22, 2014

  • Gaza death toll passes 560

    GAZA CITY, Gaza Strip — A high-level attempt by the U.N. chief and the U.S. secretary of state to end deadly Israel-Hamas fighting was off to a rough start Monday: Gaza’s Hamas rulers signaled they won’t agree to an unconditional ...

    July 22, 2014

  • Perry sending Guard troops to border

    AUSTIN, Texas — Gov. Rick Perry is deploying up to 1,000 National Guard troops to the Texas-Mexico border over the next month to combat what he said Monday were criminals exploiting a surge of children pouring into the U.S. illegally. ...

    July 22, 2014