Stock Market News for June 25, 2010 - Market News

Fears about the financial reform regulation and dour outlook from retailers sent stocks into a tailspin Thursday.  With unemployment still at a record high and consumer spending still wishy-washy, retailer’s weak forecasts were reflective of concerns that still weigh on the economy. A couple of tepid economic reports added to the bearish sentiments. 

After a brief stay in the green, the Dow Jones industrial average plunged 146 points, or 1.4%, to close at 10,152.80.  Twenty-eight of the thirty DJIA components closed the day in the red.  The broader S&P 500 index dropped 18 points, or 1.7%, and the Nasdaq Composite index shed 37 points or 1.7%.  The CBOE Vix, considered to be the market’s fear gauge, shot up 10.5% to 29.74.  On the New York Stock Exchange, declining shares beat those that advanced in price by a three-to-one margin on volume of 1.26 billion shares.

Consumer discretionary, material and financial stocks were the leading laggards.  Shares in Nike NKE fell 4% after the company said a stronger dollar and higher costs would eat into its earnings.  Bed Bath & Beyond BBBY dropped 5.6% after the company announced a second-quarter outlook that was below Street estimates.  Even as the retailers forecast disappointed investors, earnings misses from the likes of Best Buy BBY, Walgreens WAG, and ConAgra CAG had them questioning the pace of the economic recovery. 

Shares in Dell DELL dropped 6.4% after the company’s fiscal year outlook disappointed the Street.  Apple AAPL shares fell 0.8% even as the newest version of its iPhone hit the stores. Some customers reportedly complained about such technical matters as left-handed reception problems.

Concerns about the proposed Wall Street reform weighed on stocks from the sector.  Bank of America Corp. BAC dropped 2.7% and JPMorgan Chase & Co. JPM fell 2.2%. 

Greece, at the center of Europe’s debt quagmire, once again was in news for the wrong reason.  The cost of protecting against a default in its debt, as priced by credit-default swaps, jumped to a record high yesterday.

Meanwhile, some reports said General Motors is planning to file for a public offering of its common stock.  The reports said the offering could raise up to $20 billion in one of the largest offerings ever in the history of the IPO market.

Crude prices added 16 cents to settle at $76.51 a barrel on the New York Mercantile Exchange.