Try BlazeTV for Free
News

Market Recap: Stocks Mixed on EU & US News

Markets closed mixed today:

▼ Dow: -0.07 percent

▲ Nasdaq: +0.55 percent

▲ S&P: +0.25 percent

Precious metals:

▼ Gold: up -0.06 percent to $1,596.40 an ounce

▲ Silver: up +0.30 percent to settle at $27.47

Commodities:

▼ Oil: -1.26 percent

Markets were mixed because:

Investors rejoiced over Europe last week. On Monday, they got back to worrying about the United States.

Stocks struggled to stay out of the red in quiet holiday-week trading after a trade group said American manufacturing shrank in June for the first time in almost three years.

The Dow Jones industrial average was higher in early trading but fell after the manufacturing report came out at 10 a.m. EDT and never recovered. It finished down 8.70 points at 12,871.39.

The Standard & Poor's 500 and the Nasdaq composite index both finished slightly higher after hopping between small gains and losses. The S&P rose 3.35 to 1,365.51. The Nasdaq rose 16.18 to 2,951.23.

It was a tepid performance compared with Europe's. Stock indexes in France, Britain and Germany rose more than 1 percent, still riding the euphoria from Friday's announcement that European leaders will make it easier for banks to get bailout loans. That news pushed the Dow up 277 points Friday.

The government did report a sliver of good news about the U.S. economy Monday, though investors seemed underwhelmed: Construction spending rose in May by 0.9 percent, the most in five months.

Monday was the first day of trading for the second half of the year. In the first half, the S&P gained more than 8 percent. Several financial analysts said they expected volatile markets, at least through the November presidential election.

Analysts also cited tax increases and spending cuts scheduled to take effect in January - the so-called fiscal cliff.

Investors hope for some clarity later this week. U.S. car companies report monthly sales Tuesday, retailers like Target and Macy's report monthly sales on Thursday, and a closely watched report on U.S. jobs comes out Friday.

And though stocks rose in Europe, some analysts wondered how long those gains would last. Previous steps to ease the debt crisis have been met by market gains that quickly disappeared.

The day also brought reminders of how badly Europe needs help: Unemployment in the 17 countries that use the euro hit the highest level since the euro was launched in 1999.

In France, auditors warned that the country still has a big budget hole to plug. In Cyprus, leaders prepared for talks on its own bailout. And in Germany, the highest court announced it would hear arguments from people who want to block the rescue.

The yield on the benchmark 10-year U.S. Treasury note fell to 1.59 percent on Monday, down from 1.63 on Friday. The price of crude oil fell $1.21 to end the day at $83.75 per barrel.

The Associated Press contributed to this report.

One last thing…
Watch TheBlaze live and on demand on any device, anywhere, anytime.
try premium
Exclusive video
All Videos
Watch BlazeTV on your favorite device, anytime, anywhere.
Try BlazeTV for Free
Sponsored content
Daily News Highlights

Get the news that matters most delivered directly to your inbox.