Published July 09, 2012
FOX Business: The Power to Prosper
The Dow ended the session in the red for the third day in a row on Monday as traders remained cautious about the global economy and second-quarter earnings season.
The Dow Jones Industrial Average fell 36.2 points, or 0.28%, to 12736, the S&P 500 dipped 2.2 points, or 0.16%, to 1352 and the Nasdaq Composite slipped 5.6 points, or 0.19%, to 2932.
The broad S&P 500 shed 0.94% on Friday on the back of a weaker-than-expected jobs report. The mood across global trading desks remained gloomy on Monday, with many Asian markets tumbling more than 1% in reaction to the data.
The U.S. economic calendar was light on the day. A report from the Federal Reserve showed consumer credit jumping by $17.1 billion in May, which was dramatically more than the $8.5 billion economists expected.
Elsewhere, traders received data from China showing inflation cooling down dramatically in June from May. Germany, Europe's biggest economy, saw its trade surplus widen more than expected in May.
The yield on Spain's 10-year bonds crossed above the closely-watched 7% mark on the secondary markets, signaling a decreased risk tolerance. The cost to insure $10 million of the country's debt also climbed to $595,000, according to financial data firm Markit.
The euro edged up by 0.09% to $1.2301.
In corporate news, WellPoint (WLP) unveiled plans to acquire Amerigroup (AGP) in a $4.9 billion deal. Blue-chip aluminum maker Alcoa (AA) also unofficially kicks off earnings season after the closing bell.
Oil futures got a boost amid a worsening strike by oil workers in Norway that is threatening to shut down production there. Crude oil futures jumped $1.54, or 1.8%, to $85.99 a barrel. Wholesale New York Harbor gasoline rallied 1.6% to $2.759 a gallon.
In metals, gold rose $10.20, or 0.65%, to $1,589 a troy ounce.
The Euro Stoxx 50 dipped 0.34% to 2228, the English FTSE 100 fell 0.62% to 5627 and the German DAX slipped 0.35% to 6388.
In Asia, the Japanese Nikkei 225 sold off by 1.4% to 8897 and the Chinese Hang Seng tumbled 1.9% to 19428.