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Overnight Markets: US stocks fall amid Cyprus bailout concerns
by Himanshu Singh on Mar 19, 2013 at 02:30
Wall Street closed lower on Monday after a levy imposed by euro-area leaders on Cypriot bank accounts to help pay for the country's bailout stoked fears that the region’s debt crisis is intensifying.
The Dow Jones industrial average slipped 62 points, or 0.43%, to 14,452 at the close. The Standard & Poor's 500 Index shed nine points, or 0.55%, to 1,552. The Nasdaq Composite Index fell 11 points, or 0.35%, to close at 3,238.
Cypriot ministers were trying to revise a plan to seize money from bank deposits before a parliamentary vote on Tuesday that will secure the island's financial bailout or could lead to its default.
There is a concern that savers in larger European nations will become jittery and start pulling funds, although there was no immediate sign of that on Monday. European officials have said the measure is a one-off for a country that accounts for just 0.2% of European output.
Financial and energy companies suffered the most. Morgan Stanley tumbled 2.5%, while Citigroup sank 2.2%. Goldman Sachs slumped 1.9%. JP Morgan Chase declined 1%.
Schlumberger shares fell 3.9% after the world's largest oilfield services company said fewer rigs than forecast were going back to work in its North American operations.
Boeing Co lost 1.4% as the company is putting the 787 Dreamliner through tough tests that it had helped develop, but never used on the jet.
Charter Communications Inc jumped 8.8% after a report that Liberty Media Corp is close to buying a 25% stake in the cable operator for about $2.5 billion. Liberty gained 0.3%.
Electronic Arts added 2.6% after the bell after the video game company said its chief executive has resigned.
On the positive side, J.C. Penney Co. rallied 6.2% as the department store chain could turn its top 300 stores into a real estate investment trust-like entity.
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