U.S. Stocks Fall as Manufacturing Data, Oil Stoke Concern Profits to Erode

[marmar]

from Bloomberg:



U.S. Stocks Fall on Economic, Energy Concern; GE Shares Retreat

By Elizabeth Stanton

June 16 (Bloomberg) -- U.S. stocks fell for the first time in three days after a bigger-than-forecast drop in New York manufacturing and a $4 jump in oil prices added to concern that the slowing economy will prolong the slump in corporate earnings.

General Electric Co., AT&T Inc. and Verizon Communications Inc. retreated as analysts said a weakening economy may hurt profits. Honeywell International Inc. and United Technologies Corp. declined after the Federal Reserve Bank of New York's general economic index contracted at more than four times the estimated rate. Carnival Corp., the largest cruise-line company, tumbled as crude climbed to a record of almost $140 a barrel.

The Standard & Poor's 500 Index lost 2.53, or 0.2 percent, to 1,357.5 at 10:24 a.m. in New York. The Dow Jones Industrial Average slipped 41.36, or 0.3 percent, to 12,265.99. The Nasdaq Composite Index added 1.23, or 0.1 percent, to 2,455.73 as Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. rallied on speculation their merger will be approved. Eight stocks fell for every seven that rose on the New York Stock Exchange.

``We're not through the bear market yet,'' Barry James, president of James Investment Research in Dayton, Ohio, which manages $2 billion, told Bloomberg Television. ``When you have a slow economy as we do now, even less than 2 percent growth, that is not a healthy environment for stocks. You've got a lot of pressure on the consumer.''

Today's declines added to the S&P 500's first back-to-back weekly losses since March after the Federal Reserve last week signaled it may raise interest rates and Lehman Brothers Holdings Inc.'s $2.8 billion loss renewed speculation that banks face more writedowns.

Earnings at companies in the index tumbled 19 percent on average in the first quarter. The third straight quarter of lower profits marked the longest stretch of declines since 2002, according to data compiled by Bloomberg. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=atbDEhIeaUQU&refer=home