Wednesday, October 1, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

European banking scare sends stocks lower

By
From page B6 | July 11, 2014 |

NEW YORK — Stocks fell Thursday as worries about the soundness of a European bank spooked U.S. investors, prompting them to sell stocks and snap up less risky assets like gold and governments bonds.

Fears emerged overnight about the financial stability of Espirito Santo International, a holding company that is the largest shareholder in a group of firms, including the parent of Portugal’s largest bank, Banco Espirito Santo.

Espirito Santo International reportedly missed a debt payment this week and was cited for accounting irregularities – similar to issues that sparked Europe’s debt crisis four years ago. The bank troubles had traders and investors talking about another European debt crisis.

Thursday’s stock selling started in Europe, and spread to the U.S, where the Dow Jones industrial average plunged as much as 180 points within the first half hour of trading.

But anxiety in the U.S. quickly subsided and the market clawed back in afternoon trading. While the market never fully bounced back, the decline in the Dow was roughly half of what it was at the beginning of the session.

“Today’s news did reignite some of those contagion fears,” said Ryan Larson, head of equity trading for RBC Global Asset Management.

Portugal is one of the smaller eurozone economies and, like Greece and Ireland, needed an international rescue in 2011 during the continent’s debt crisis. A three-year economic recovery program was supposed to have straightened out its finances.

That debt crisis in Europe was largely responsible for the U.S. stock market’s last decline of 10 percent or more, known as a “correction” in Wall Street parlance. Investors back then worried that the crisis would spread to the U.S., which was starting to recover from its own financial trauma.

On Thursday, the Dow fell 70.54 points, or 0.4 percent, to 16,915.07, erasing most of Wednesday’s advance.

The Standard & Poor’s 500 index fell 8.15 points, or 0.4 percent, to 1,964.88 and the Nasdaq composite fell 22.83 points, or 0.5 percent, to 4,396.20.

Traders and market strategists pointed to a couple of reasons why stocks didn’t continue falling in the U.S.

First, because it has been a relatively quiet week for Wall Street, with little economic data and only a couple companies reporting quarterly results, any negative news was likely “met with overreaction,” Larson said.

“After participants had time to step back and assess, many realized the U.S. is in a relatively good spot compared with (Europe),” he said.

Second, even with the U.S. market trading near all-time highs, many investors are sitting on large amounts of cash. Any noticeable fall in stock prices would likely mean investors would step in.

“Generally, people are willing to put money into this market when the opportunity presents itself,” said Erik Davidson, deputy chief investment officer of Wells Fargo Private Bank, which manages $170 billion in assets.

Investors did seek out some protection Thursday. Bond prices and gold rose as investors moved money into those traditional havens. The yield on the U.S. 10-year note fell to 2.54 percent from 2.55 percent late Wednesday. Gold rose $14.90, or 1.1 percent, to $1,339.20 an ounce.

In stocks, investors moved money into utility and telecommunication companies, also common areas to invest when uncertainty emerges in markets. Utility and telecom companies typically pay a higher-than-average dividend, which makes them attractive when investors don’t expect stock prices to go higher.

The Dow Jones utility index, a collection of 15 utility companies, rose 0.6 percent — the only major index to rise Thursday.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

 
 
Middle school students put school candidates on the hot seat

By Susan Winlow | From Page: A1 | Gallery

 
Solano focuses on rail safety

By Barry Eberling | From Page: A3, 1 Comment

 
 
Booz and Brewz benefit for the Blue Star Moms

By Amy Maginnis-Honey | From Page: A4

Police search for missing man

By Glen Faison | From Page: A4 | Gallery

 
Travis airman killed in motorcycle accident

By Ian Thompson | From Page: A5

 
Caltrans cancels nighttime Highway 37 closures

By Barry Eberling | From Page: A5

Salvation Army gears up for annual Red Kettle campaign

By Amy Maginnis-Honey | From Page: A5, 1 Comment | Gallery

 
Blessing of the animals slated Sunday

By Amy Maginnis-Honey | From Page: A5, 2 Comments

 
Theaters primed for bevy of new movies

By Amy Maginnis-Honey | From Page: A7

Fairfield police log: Sept. 29, 2014

By Susan Hiland | From Page: A9, 2 Comments

 
Suisun City police log: Sept. 29, 2014

By Susan Hiland | From Page: A9

Fairfield police log: Sept. 27, 2014

By Glen Faison | From Page: A9, 2 Comments

 
Suisun City police log: Sept. 28, 2014

By Glen Faison | From Page: A9

Suisun City police log: Sept. 27, 2014

By Glen Faison | From Page: A9

 
Fairfield police log: Sept. 28, 2014

By Glen Faison | From Page: A9, 2 Comments

4-H Achievement Night honors county members

By Susan Winlow | From Page: A10

 
Measure A committee plans weekend precinct walk

By Susan Winlow | From Page: A10

 
FBI announces reward for Vacaville bank robber

By Jess Sullivan | From Page: A10

American Legion seeks Korean War veterans for award

By Susan Hiland | From Page: A10

 
Third Annual Ride to Defeat Diabetes is Sunday

By Susan Hiland | From Page: A10

.

US / World

Forest areas reopen after huge fire

By The Associated Press | From Page: A6

 
Hong Kong leader refuses to meet with protesters

By The Associated Press | From Page: B7

Secret Service chief on hot seat for WH breach

By The Associated Press | From Page: B7

 
Afghan pact signed amid questions on Iraq pullout

By The Associated Press | From Page: B7

Government confirms first case of Ebola in US

By The Associated Press | From Page: A9

 
Mayor of suburban Los Angeles city killed

By The Associated Press | From Page: A9, 1 Comment

Crash, suspicious device lead to 101 closure in LA

By The Associated Press | From Page: A9

 
Gov. Brown governor vetoes ethics bills

By The Associated Press | From Page: A9, 6 Comments

Police on manhunt find pipe bombs in woods

By The Associated Press | From Page: A9

 
Oklahoma man charged with murder in beheading

By The Associated Press | From Page: A9

Luck, instinct determined fates of volcano hikers

By The Associated Press | From Page: A9

 
California becomes first state to ban plastic bags

By The Associated Press | From Page: A11, 6 Comments

Bay Area looks to expand overnight transit options

By The Associated Press | From Page: A12

 
Gov. Jerry Brown signs California gun restriction

By The Associated Press | From Page: A12, 13 Comments

.

Living

Today in History: Oct. 1, 2014

By The Associated Press | From Page: A2

 
Community Calendar: Oct. 1, 2014

By Susan Hiland | From Page: A2

 
Horoscopes: Oct. 1, 2014

By Holiday Mathis | From Page: B5

One simple slicing trick to bake a beautiful tart

By Sara Moulton | From Page: B6

 
The flavor of fall – pumpkin pie in a cinnamon bun

By The Associated Press | From Page: B6, 1 Comment

 
.

Entertainment

TVGrid

By Daily Republic Syndicated Content | From Page: A5

 
Morgan: ‘Can’t believe’ Walmart blaming him

By The Associated Press | From Page: A7

.

Sports

Royals beat A’s 9-8 in 12 in AL wild-card thriller

By The Associated Press | From Page: B1 | Gallery

 
Local report: Rodriguez volleyball team downs Armijo

By Daily Republic staff | From Page: B1

Pirates’ Volquez looks to continue revival against Giants

By The Associated Press | From Page: B1 | Gallery

 
Raiders make Tony Sparano interim coach after firing Allen

By The Associated Press | From Page: B1

 
Government: NFL TV ‘blackout’ rule unsportsmanlike

By The Associated Press | From Page: B2

Olympian Michael Phelps apologizes for DUI arrest

By The Associated Press | From Page: B2

 
Gravely injured Giants fan sues Dodgers again

By The Associated Press | From Page: B2, 1 Comment

Ex 49ers RB James agrees to terms with Dolphins

By The Associated Press | From Page: B2

 
FCC will consider petition to ban ‘Redskins’

By The Associated Press | From Page: B2

 
Training camp essential for NBA’s new head coaches like Warriors’ Kerr

By The Associated Press | From Page: B2 | Gallery

No. 14 Stanford trying to jolt stagnant offense

By The Associated Press | From Page: B2

 
NC State coach apologizes for fake injury remarks

By The Associated Press | From Page: B2

NFL says Abdullah should not have been penalized

By The Associated Press | From Page: B2

 
NFL has laundry list of verboten celebrations

By The Associated Press | From Page: B2

49ers’ Wilhoite filling the injury void at linebacker

By The Associated Press | From Page: B8 | Gallery

 
.

Business

EU says Apple gets illegal tax benefits in Ireland

By The Associated Press | From Page: A9

 
Could a merger follow the PayPal-eBay split?

By The Associated Press | From Page: A9

.

Obituaries

Clara May Clift Triplett

By Daily Republic staff | From Page: A4, 3 Comments

 
David Earl Butenhoff-Forristall

By Nancy Green | From Page: A4, 1 Comment

Marte Abad Lubag

By Nancy Green | From Page: A4

 
.

Comics

Wizard of Id

By Daily Republic Syndicated Content | From Page: B4

 
Dilbert

By Daily Republic Syndicated Content | From Page: B4

Beetle Bailey

By Daily Republic Syndicated Content | From Page: B4

 
Rose is Rose

By Daily Republic Syndicated Content | From Page: B4

Frank and Ernest

By Daily Republic Syndicated Content | From Page: B4

 
Sally Forth

By Daily Republic Syndicated Content | From Page: B4

Peanuts

By Daily Republic Syndicated Content | From Page: B4

 
Blondie

By Daily Republic Syndicated Content | From Page: B4

B.C.

By Daily Republic Syndicated Content | From Page: B4

 
Pickles

By Daily Republic Syndicated Content | From Page: B4

Garfield

By Daily Republic Syndicated Content | From Page: B4

 
Get Fuzzy

By Daily Republic Syndicated Content | From Page: B4

Baby Blues

By Daily Republic Syndicated Content | From Page: B4

 
For Better or Worse

By Daily Republic Syndicated Content | From Page: B4

Baldo

By Daily Republic Syndicated Content | From Page: B4

 
Zits

By Daily Republic Syndicated Content | From Page: B4

Crossword

By Daily Republic Syndicated Content | From Page: B5

 
Cryptoquote

By Daily Republic Syndicated Content | From Page: B5

Sudoku

By Daily Republic Syndicated Content | From Page: B5

 
Bridge

By Daily Republic Syndicated Content | From Page: B5

.

Breast Cancer Awareness 2014

Breast cancer in younger women

By Green Shoot Media | From Page: BCA2

Talking with your doctor

By Green Shoot Media | From Page: BCA3

Breast cancer myths

By Green Shoot Media | From Page: BCA4

Diet linked to cancer

By Green Shoot Media | From Page: BCA9

Giving emotional support

By Green Shoot Media | From Page: BCA10

After the treatment

By Green Shoot Media | From Page: BCA12

Join the fight: Get involved

By Green Shoot Media | From Page: BCA15