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Wall Street's euro headache returns

Wednesday, May 30, 2012 - 01:47

May 30 - Summary of business headlines: Stocks post biggest decline in two-weeks and the 10-year note yield hits lowest in at least 60 years as Greek polls reignite euro break-up talk; Research in Motion, Facebook shares fall. Conway G. Gittens reports.

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PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL Wall Street had its biggest slide in about two weeks as worries about pop up again. Blue chips lost 160 points, the S&P 500 was down 19, the Nasdaq gave back 33 points. That money flowing out of stocks found a home in the safety of U.S. treasuries, but at what return? Yields on the 10-year note touched their lowest in about six decades, falling as low as the 1.61 percent area. Nervous investors also dumped oil. NYMEX crude closed at a seven-month low, below $88 a barrel. Why the new worry? An anti-bailout party in Greece has taken the lead in a new poll ahead of national elections next month, putting the thought of a Greek exit from the euro zone back on investors' minds. Also, borrowing costs in Spain are pushing near the point that caused other euro zone countries to seek bailouts. U.S. listed shares of Research in Motion lost about 8 percent as investors try to figure out what's next for the maker of the once ubiquitous BlackBerry device, now that it's hired bankers to review the business. And the selling continues for Facebook. Shares have lost more than a quarter of their IPO value. Economic data held little sway on investor psychology. Signed contracts for home purchases surprisingly dropped in April, hitting a four-month low. Some economists say that's payback for early activity tied to the unusually warm winter. Wrapping up with a look at Europe - France led the pack with a more than 2 percent decline, followed closely by drops in Germany and the U.K. Conway Gittens, Reuters

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Wall Street's euro headache returns

Wednesday, May 30, 2012 - 01:47