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U.S. Markets Pare Gains On Greek Debt Downgrade, Finish Mixed
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June 14, 2010 5:18 p.m. EST
Topics: market and exchange, economy, business and finance, securities, United States
 
Mitchell Jaworski - AHN News Reporter
New York, NY, United States (AHN) - U.S. markets opened higher Monday only to pare gains as a late sell off was set off after Moody’s downgraded Greece’s debt to junk status.
 
 The credit rating agency downgraded Greek government debt four notches to Ba1, the first level of junk status, on concerns surrounding the impact of the country’s austerity plan and subsequent rescue package.
 
 The Dow Jones Industrial average had been up more than 100 points before the sellers came in, finishing 20 points lower at 10,190. Dow decliners outpaced advancers 20 to 10.
 
 The banking names weighed on the Dow most, with JP Morgan (NYSE: JPM) and Bank of America (NYSE: BAC) down 2 percent and 1.2 percent, respectively. Financials were pressured on a whole Monday as Congress irons out financial reform legislation.
 
 The S&P 500 just dipped into negative territory minutes before the closing bell, finishing lower by 2 points. Six major economic sectors fell, while four posted a gain for the day.
 
 Materials and financials were the two weakest sectors, down 1 percent and 0.7 percent, respectively. Utilities help up best, adding 0.4 percent on the day.
 
 The Nasdaq Composite held up best, finishing flat on the day. The chip names helped buoy the tech heavy average with the semiconductor index adding 0.7 percent on Monday. Big-cap tech lagged as the Nasdaq 100 finished slightly negative.
 
 Crude oil continued its recent strength, adding 1.8 percent to settle at $75.12 a barrel on the New Mercantile Exchange.
 
 Elsewhere, shares of BP continued to feel pressure, down 9.7 percent. Monday’s wave of selling was fueled by speculation the oil company would have to cut its dividend to help pay for the oil spill. BP CEO Tony Hayward received a letter from the Senate on Monday asking for $20 billion to be set aside for cleanup costs.
 
 Tuesday’s market will see the release of the June Empire Manufacturing Index, along with U.S. export and import prices for the month of May.
 
Copyright © 2003 - 2010 AHN - All rights reserved.Redistribution, republication. syndication, rewriting or broadcast is prohibited without the prior written consent of AHN.License AHN news for your website, business, digital signage network or publication.
  
 
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