DOW Drops to 2010 Lowest Close
The stock market was hit hard by economic worries today. Dismal data overshadowed a strong earnings report from tech bellwether Cisco Systems (CSCO). Negativity began to sweep the Street prior to the opening bell, as Spain hiked its budget deficit forecasts through 2012, becoming the latest member of the euro zone to admit to crippling debt issues. On the homefront the Labor Department reported that initial jobless claims unexpectedly rose last week to 480,000, defying expectations for a decrease to 455,000
When the dust settled, the Dow Jones Industrial Average (DJIA – 10,002.18) was barely clinging above the 10,000 level. The blue-chip barometer gave up 268.4 points, or 2.6%, as all but one of its 30 components succumbed to heavy selling pressure. Cisco Systems was the lone advancing equity, while Bank of America (BAC) paced the laggards after New York Attorney General Andrew Cuomo filed civil securities fraud charges against the company. Not only did the Dow notch its lowest close of 2010, it’s also in danger of notching another weekly breach of its 20-week moving average.
