U.S. stocks tumbled on Monday, with major indexes falling by their biggest margin in months, amid concern about Google Inc.'s (GOOG.O:
Quote,
Profile,
Research) valuation and doubts about holiday spending after a disappointing sales estimate from Wal-Mart Stores Inc. (WMT.N:
Quote,
Profile,
Research). In addition, downward pressure on the dollar for a fourth straight day hurt demand for U.S. investments, while a rise in crude oil prices above $60 a barrel added to concerns about consumer spending. The Dow Jones industrial average <.DJI> was down 158.38 points, or 1.29 percent, at 12,121.79. The Standard & Poor's 500 Index <.SPX> was down 19.02 points, or 1.36 percent, at 1,381.93. The Nasdaq Composite Index <.IXIC> was down 54.34 points, or 2.21 percent, at 2,405.92. For the Nasdaq, it was the biggest net point decline since September 24, 2003. The S&P 500 notched its biggest percentage decline since early June and the Dow fell its most since early July. Ford Motor Co. (F.N:
Quote,
Profile,
Research) shares fell 4.2 percent, or 36 cents, to $8.16 on the New York Stock Exchange after it announced plans to borrow $18 billion by pledging assets as collateral to fund its restructuring. In another sign of investor worries, the Chicago Board Options Exchange Volatility Index <.VIX> jumped 14.6 percent on Monday. The indicator, also known as the VIX and the market's fear gauge, measures expectations of near-term volatility determined by the Standard & Poor's 500 <.SPX> options prices. Shares of Wal-Mart, the world's largest retailer, fell 2.7 percent, or $1.29, to $46.61 on the NYSE after it estimated November sales fell 0.1 percent at U.S. stores open at least a year. Shares of Web search company Google fell 4 percent, or $20.25, to $484.75 and were the biggest drag on the Nasdaq after the report in Barron's.
The dollar's recent decline to a 20-month low against the euro of $1.3172 has raised questions about the attractiveness of U.S. stocks to foreigners. U.S. crude oil for January delivery
climbed $1.08 to settle at $60.32 a barrel. Saudi Arabia's oil minister said OPEC may cut output further at a December 14 meeting. Shares of U.S. airlines fell on Monday, with Continental Airlines (CAL.N: Quote, Profile, Research) down 7.3 percent, or $3.31, at $42.07 in Big Board trading, partly on rising oil prices. Shares of AMR Corp.(AMR.N: Quote, Profile, Research), the operator of American Airlines, slid 5.6 percent, or $1.90, to $32.20 on NYSE. Trading was active on the NYSE, with about 1.61 billion shares changing hands, matching last year's daily average of 1.61 billion, while on Nasdaq, about 2.00 billion shares traded, above last year's daily average of 1.80 billion. Advancing stocks outnumbered declining ones by a ratio of more than 4 to 1 on both the NYSE and the Nasdaq.
Source: Reuters.comLabels: AMR, Continental, Ford, Google, Hot Stocks, Oil, Wal-Mart