Egypt’s unrest resonates in U.S. markets
U.S. stocks slid, preventing the longest stretch of weekly gains for the Dow Jones industrial average since 1995, as unrest in Egypt triggered the biggest one-day drop since November and overshadowed higherthan-projected earnings at companies from Intel to DuPont.
Ford Motor and Amazon.com lost more than 3.5 percent for the week after their earnings and forecast, respectively, missed estimates. American Express, Bank of America and Johnson & Johnson posted weekly losses exceeding 4.2 percent after protestors in Egypt challenged Hosni Mubarak’s 29year presidency.
The Dow lost 48.14 points, or 0.4 percent, to 11,823.70 last week, after rising above 12,000 for the first time since 2008 during three trading sessions. The Standard& Poor’s 500 Index decreased 0.6 percent to 1,276.34.
“ This is a healthy trade,” said Joe “JJ” Kinahan, the chief derivatives strategist at Omaha-based TD Ameritrade Holding. “A market that goes straight up is not necessarily a healthy market, but one that bounces its way up usually can lead to longer-term gains.”
The S&P 500 has surged 22 percent since Federal Reserve Chairman Ben S. Bernanke said Aug. 27 that he was prepared to take action to help the economy. The Fed last week maintained its plan to buy $600 billion in Treasuries to stimulate growth.
The Treasury will sell $32 billion in threemonth and $30 billion in six-month bills Monday. They yielded 0.145 percent and 0.167 percent in when-issued trading.