NEW YORK - Stocks dropped today as concerns about Latin America's economic recovery muted investor optimism about second-quarter earnings reports. Dow off 25.96
Associated PressThe Dow Jones industrial average fell 25.96 to close at 11,175.02 after having fallen as much as 114 points in early trading. The Dow's loss came after the blue chips achieved closing highs in the past four sessions.
Broader stock indicators also declined. The Nasdaq composite index fell 12.21 to 2,778.23 and the Standard & Poor's 500 index slipped 5.54 to 1,393.56. Decliners led advancers by a 4-to-3 margin on the New York Stock Exchange, with 1,281 up, 1,731 down and 562 unchanged. NYSE volume totaled 737.88 million shares vs. 668.87 million in the yesterday. The NYSE composite index fell 2.15 to 653.64, and the American Stock Exchange composite dropped 3.21 to 812.33. The Russell 2000 index slipped 1.19 to 458.11.
J.P. Morgan and Citigroup slipped as the financial services sector stumbled on worries about its exposure to weak capital markets in Latin America.
Bond prices, which rose markedly yesterday as investors sought a safe haven from the possibility of a new Latin America crisis, held steady today. That helped limit the extent of the selloff in stocks to financial services issues, analysts said. The 30-year U.S. bond rose 2/32, or 63 cents per $1,000 face amount, to 90 29/32. It yield fell 1 basis point to 5.90 percent.
Several Latin American markets fell sharply yesterday after statements by Argentina's presidential candidates hinted at a possible moratorium on repayment of the country's debt. Most Latin American markets rebounded today.