U.S. stocks fall on Greece concerns; Dow edges down 0.10%

Published 10/03/2011, 11:39 AM
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Investing.com – U.S. stocks fell on Monday, erasing earlier gains as sustained euro zone concerns overshadowed better-than-expected U.S. manufacturing data for September.

During early U.S. trade, the Dow Jones Industrial Average was down 0.10%%, the S&P 500 index shed 0.24%, while the Nasdaq Composite index dipped 0.21%.

Risk sentiment remained weak as concerns over the euro zone debt crisis deepened, after the head of the Eurogroup of finance ministers Jean-Claude Juncker said that no decisions on Greece's next bailout tranche would be made on Monday.

Investors' concerns over a potential U.S. recession briefly eased earlier, after industry data showed that manufacturing activity rose unexpectedly in September.

In a report, the Institute for Supply Management said its index of purchasing managers rose to 51.6 in September from 50.6 in August. Analysts had expected the index to ease down to 50.5 in September.

The U.S. energy sector led losses, with shares in Chevron tumbling 1.53% and General Electric falling 1.05%, while oil and gas producer Exxon Mobil eased down 1.01%.

Meanwhile, U.S. lenders tracked performances by their European counterparts, with Goldman Sachs tumbling 1.61% after writing in a note to clients that risks are rising and that the country could fall into a painful recession. Citigroup shares posted a 3.22% decline.

On the upside, Kodak surged 89.72% after the photography company denied reports that it had filed for bankruptcy.

Elsewhere, Yahoo shares jumped 4.7% after the search-engine company unveiled a partnership with ABC, in a move to readjust its focus after several years of failed restructuring efforts.

Across the Atlantic, European stock markets remained broadly lower. The EURO STOXX 50 dropped 2.03%, France’s CAC 40 fell 1.93%, Germany's DAX tumbled 2.27%, while Britain's FTSE 100 eased down 1.29%.

During the Asian trading session, Hong Kong’s Hang Seng Index fell 2.84%, while Japan’s Nikkei 225 Index inched 0.01% lower.  

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