Stocks endure worst drop of 2012
Stocks fall on worries over roadblock to an agreement on Greece's sovereign debt, marking the first losing week for stocks in 2012. Dow falls 89 points, S&P falls 9 points.
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The price of gold fell $16, or nearly 1 percent, to settle at $1,725 an ounce. Gold usually rises when stocks fall because it's seen as a safe place to park money when markets are volatile, but that relationship has broken down recently. Many investors now worry that gold is too expensive after a 26 percent surge over the past year.Skip to next paragraph
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"People are speculating, and so the drop could get bigger," said Mark Matson, CEO of Matson Money, which manages more $3 billion in assets. "Gold is good for jewelry, not in your portfolio."
In other commodity news, the price of oil fell $1.17 to $98.67 a barrel.
Among stocks making big moves:
— LinkedIn rose 18 percent. The online networking company announced that fourth- quarter earnings had soared and revenue doubled.
— Jeans maker True Religion Apparel plunged 28 percent. The company reported earnings that were far below what analysts were expecting. Analysts slashed their ratings on the stock, citing weak sales and big markdowns.
— NYSE Euronext, parent company of the New York Stock Exchange, rose 4.5 percent, best among stocks in the S&P 500. It beat Wall Street estimates for revenue and profit. CEO Duncan Niederauer said the company would focus on growth and perhaps small acquisitions after a failed attempt to merge with a German exchange company.
— Telecom gear maker Alcatel-Lucent rose 12 percent after announcing it made its first annual profit in 2011 after years of losses.
— First Solar, a solar panel maker, fell 10 percent. The company said a construction delay is threatening to undo the sale of a large solar project to power producer Exelon Corp.
On the New York Stock Exchange, three stocks fell for every one that rose. Volume was light with just 3.5 billion shares trading hands.