“The Dow industrials suffered its worst slide since July on Friday on concerns that the economic recovery won’t be robust enough to sustain the seven-month stock rally, while financials sank on renewed worries about Citigroup’s balance sheet,” Ellis Mnyandu reports for Reuters.
“Investors unloaded shares across the board on the day that marked the end of the fiscal year for many mutual funds, putting the S&P 500 on the brink of a correction,” Mnyandu reports. “Analysts said there were doubts that the recovery would be strong enough to justify higher stock prices a day after government data showed the economy returned to growth in the third quarter.”
“Anthony Conroy, head trader for BNY ConvergEx, an affiliate of the Bank of New York, in New York, [said], ‘You need growth, you need a healthy financial system to have a healthy economy. There are questions out there about how things go from here. Right now the government is fueling the system with cash. That can’t last forever,'” Mnyandu reports.
“All 30 Dow stocks finished in the red, with JPMorgan the top drag with a drop of 5.8 percent to $41.77, followed by Exxon Mobil Corp, off 3.1 percent at $71.67,” Mnyandu reports. “On Nasdaq, Apple Inc, the iPhone maker, lost 4 percent to $188.50, while Google Inc, the Web search leader, declined 2.7 percent to $536.12.”
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