Stocks in U.S. Decline to the Lowest Level in Three Months on Oil Price

[marmar]

from Bloomberg:



U.S. Stocks Drop on Oil's Surge, Forecast of Weaker Tech Demand

By Elizabeth Stanton

June 20 (Bloomberg) -- U.S. stocks slid to a three-month low, led by consumer and technology companies, as threats of increased violence in the Middle East sent oil prices higher and analysts said demand for electronics may weaken.

Benchmark indexes extended declines after Standard & Poor's said it may cut credit ratings on General Motors Corp. and Ford Motor Co., sending GM to its lowest level since 1982. SanDisk Corp. posted its worst drop in eight months on Citigroup Inc.'s prediction that earnings will be less than estimated because of lower overseas demand. Huntington Bancshares Inc. rallied 30 percent, spurring a rebound in regional banks, after the Ohio lender said uncollectible loans will not exceed its forecast.

Shares in Europe and Asia also tumbled, sending the MSCI Emerging Markets Index down for a third day, as Iran's threat to retaliate against a potential attack by Israel also weighed on shares. The declines pushed the S&P 500 Index to its third- straight weekly retreat.

``Investors are continuing to lose confidence in the economy,'' said James W. Gaul, a portfolio manager at Boston Advisors LLC in Boston, which manages $2 billion. ``The idea that we're going to end the year up is probably going out the window now.''

The S&P 500 lost 20.98, or 1.6 percent, to 1,321.85 at 1:39 p.m. in New York. The Dow Jones Industrial Average dropped 181.16, or 1.5 percent, to 11,881.93. The Nasdaq Composite Index slid 57.06, or 2.3 percent, to 2,405. Almost eight stocks fell for each that rose on the New York Stock Exchange. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aewr9AUSPo.0&refer=home