U.S. stocks fall on European economic, debt worries

(AP) - Worries about Europe's economic and debtproblems sent U.S. stocks Tuesday to their first loss in four days. The major indexes bounced up and

NEW YORK - (AP) - Worries about Europe's economic and debtproblems sent U.S. stocks Tuesday to their first loss in four days.

The major indexes bounced up and down in another volatile day.The Dow Jones industrial average fell more than 120 points in thefirst half hour of trading after a report showed that Germany'seconomy stalled last quarter and dragged down growth for Europe.

The Dow recovered and had a slight advance at midday, butresumed its drop after the leaders of France and Germany tried tocalm worries about Europe's debt problems by pushing for long-termpolitical solutions. Investors were hoping for immediate financialmeasures like the introduction of a single bond jointly backed bythe eurozone's members. The Dow fell as many as 190 points in theearly afternoon before again recovering.

At the close, the Dow was down 76.97, or 0.7 percent, to11,405.93. It was the first time in seven trading days that the Dowrose or fell by less than 100 points. The Standard & Poor's 500index fell 11.73, or 1 percent, to 1,192.76. The Nasdaq compositefell 31.75, or 1.2 percent, to 2,523.45.

"The real question the market is trying to answer is: Are wegoing to have another recession or not?" said John Burke, head ofBurke Financial Strategies with $200 million in assets undermanagement. "Today, the answer is maybe yes, because it doesn'tlook like Europe has figured out a solution to its debt."

A proposal for a Europe-wide tax on financial transactions alsohurt stocks, said Nick Kalivas, vice president at broker MF Global."It's another slap in the face to the banking system" and wouldcut into profits and limit trading, he said. "The path towardeconomic growth still looks pretty uncertain."

In the U.S., economic reports Tuesday were mixed: Housingremains weak, but factory output rose last month at its fastestpace since an earthquake in Japan disrupted global manufacturing inMarch.

advertisement | advertise on News 12

Top 5 Must See

Valley Stream residents got another chance Thursday to 1 Hempstead IDA holds another meeting on mall tax break
FILE - In this Jan. 8, 2016 file 2 Drug lord 'El Chapo' extradited, flown to Suffolk airport
A Riverhead school bus driver has been 3 Riverhead bus driver arrested after drug raid at school's garage
Officials say a 16-year-old is under arrest in 4 Officials: Teen arrested in connection with 2 slayings, robbery
Police say detectives bought heroin during an investigation 5 Police: Heroin overdose leads police to arrests in Freeport

advertisement | advertise on News 12

Features

Each week, News 12's Doug Geed explores the Check out fun things to do on the East End!

Explore the Twin Forks with News 12's Doug Geed.

Each week a different shelter visits News 12 Dog Day Fridays Series

Each week a different shelter visits News 12 Long Island with pets up for adoption.

News 12 digs deep to find Long Island's Discover Long Island's Hidden Past

News 12's Danielle Campbell digs into Long Island's roots.

News 12's Lily Stolzberg sees how much Long On The Spot

News 12's Lily Stolzberg sees how much Long Islanders know about everything and anything.

Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE