BL: Most U.S. Stocks Fall on Disappointing Treasury Auction, Greece
By Michael P. Regan
March 25 (Bloomberg) -- Most U.S. stocks fell for a second day as a disappointing Treasury auction and discord among European leaders about how to rescue Greece erased a rally in the final half hour of the session.
Schlumberger Ltd. and ConocoPhillips paced declines in 38 of 40 energy companies in the Standard & Poor’s 500 Index as a stronger dollar wiped out gains in oil. Monsanto Co. and DuPont Co. helped lead producers of raw materials lower.
“The U.S. Treasury market has gotten slammed over the past two days,” Peter Boockvar, equity strategist at Miller Tabak & Co. in New York, wrote in an e-mail. “This is the last thing a fragile economy needs because yields aren’t spiking because all of a sudden the U.S. economy is great again.”
About two stocks retreated for each that rose on the New York Stock Exchange and Nasdaq Stock Market. The S&P 500 slipped 0.2 percent to 1,165.73 at 4:09 p.m. in New York after rallying as much as 1.1 percent earlier to above its highest close in 18 months. The Dow Jones Industrial Average increased 5.06 points, or less than 0.1 percent, to 10,841.21, wiping out most of a 119 point rally.
The 10-year Treasury yield climbed two basis points to 3.88 percent after jumping 17 basis points yesterday. The Dollar Index rose 0.4 percent to 82.165, the highest level since May 18, 2009.
The euro weakened to an almost 11-month low versus the dollar as European Central Bank President Jean-Claude Trichet said the region needs to take responsibility for its members and that possible International Monetary Fund aid for Greece is “very, very bad.”
French President Nicolas Sarkozy bowed to German Chancellor Angela Merkel’s demand for an IMF role in a potential rescue package for Greece.
To contact the reporter on this story: Michael P. Regan in New York at Mregan12@bloomberg.net.
Last Updated: March 25, 2010 16:11 EDT
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