NEW YORK (AP) – Stocks fell Thursday after another series of disappointing reports made investors more pessimistic about the economy.

The Dow Jones industrial average fell more than 75 points, likely ending its seven-day winning streak, while all the major indexes were down moderately. Interest rates tumbled in the Treasury market as investors worried about the economy went in search of safe investments. The yield on the 10-year Treasury note dropped below 3 percent.

A day after the Federal Reserve issued a slightly more bleak outlook on the economy, two regional reports pointed to a slowing in manufacturing activity in the Northeast. Meanwhile, the Fed reported modest growth in industrial output nationwide. And the Labor Department said that first-time claims for unemployment benefits fell last week, but that was largely due to seasonal factors.

“We’ve hit a soft spot,” Howard Ward, chief investment officer at GAMCO Growth Fund, said of the economic recovery. “The question is, are we starting to already improve or are we still falling down.”

The disappointing manufacturing reports, which followed a weeklong stock rally, made the market “susceptible to profit taking,” Ward said.

There appeared to be a shift in investors’ view of the economy. They had been upbeat over the past week on more positive economic signs, in particular forecasts from companies including Intel Corp. and Alcoa Inc. But the latest disappointing numbers now seem to be dictating investors’ moves, and analysts questioned whether investors would start buying again if companies keep reporting strong earnings and outlooks.

Industrial companies like Caterpillar Inc., General Electric Co. and United Technologies Corp. all fell after the weak manufacturing reports.

JPMorgan Chase & Co., the first big bank to report its second-quarter earnings, said it had set aside less money to cover losses on failed loans. That is a sign that mortgage and loan defaults may be moderating. But CEO Jamie Dimon kept a cautious tone about future economic growth.

“Earnings are strong,” said Sandy Mehta, principal and chief investment officer of Value Investment Principals. “But the underlying economy is not as strong.”

In midday trading, the Dow Jones industrial average fell 76.28, or 0.7 percent, to 10,290.44. The Standard & Poor’s 500 index fell 8.93, or 0.8 percent, to 1,086.24, while the Nasdaq composite index fell 16.47, or 0.7 percent, to 2,233.37.

About three stocks fell for every one that rose on the New York Stock Exchange where volume came to 366.9 million shares.

Bond prices rose as investors sought safety the safety of government securities after the mixed economic reports. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.99 percent from 3.05 percent late Wednesday.

JPMorgan Chase fell 95 cents, or 2.4 percent, to $39.40. Caterpillar fell 93 cents to $65.77, while GE dropped 13 cents to $15.07. United Technologies fell 10 cents to $67.91.

The steep drops reported Thursday in the Empire State and Philadelphia Fed Manufacturing indexes dented optimism about the manufacturing industry, which had shown the most consistent growth coming out of the recession.

The Empire State index fell to 5.08, well below the 18.50 economists had predicted and the 19.57 reported last month. The Philadelphia Fed index dropped to 5.1 for July. Economists had predicted it would rise to 10.0.

The Fed’s report on industrial production showed output at the nation’s factories, mines and utilities rose by 0.1 percent in June, better than the 0.1 percent drop economists forecast.

Volatility spiked again in the market after the disappointing reports. The Chicago Board Options Exchange’s Volatility index, or VIX, jumped more than 5 percent.

“Volatility is definitely back in vogue,” said John Lekas, CEO of Leader Capital. The VIX is also known as the fear gauge and often rises when investors worry about the strength of the economy.

Lekas said that until unemployment comes down, the economy is likely to remain weak.

The Labor Department did say Thursday that initial claims for jobless benefits fell by 29,000 to a seasonally adjusted 429,000, the lowest level since August 2008. Economists polled by Thomson Reuters had predicted claims would drop to 450,000.

However, the claims could be skewed because General Motors and other manufacturers skipped their usual July shutdowns. Normally that would lead to temporary seasonal layoffs, which did not show up in the latest figures.

The Dow eked out a gain of 4 points Wednesday to extend its winning streak to seven days. However, the S&P 500 snapped its run of gains by falling less than 1 point.

The euro climbed above $1.28 for the first time in more than two months Thursday as investors worried about the strength in the U.S.

Overseas, Britain’s FTSE 100 fell 0.7 percent, Germany’s DAX index fell 1 percent, and France’s CAC-40 fell 1.4 percent. Japan’s Nikkei stock average fell 1.1 percent.

NEW YORK (AP) — The stock market got a shot of confidence and adrenaline from the start of second-quarter earnings season.

Investors were enthusiastic Tuesday about better-than-expected profits from aluminum maker Alcoa Inc. and railroad operator CSX Corp. The Dow Jones industrial average rose more than 145 points and the major indexes were up well over 1 percent.

There was more good news from Intel Corp. after the close of trading. The chip maker reported earnings and revenue that beat analysts’ expectations, and it also raised its forecast for the year. Its stock shot up more than 5 percent in after-hours trading.

The companies, among the first to report second-quarter earnings, also issued upbeat forecasts for the rest of the year. That was heartening news for investors who have been concerned that the recovery was stalling, or that the economy might even fall back into recession.

“When we go back to earnings and fundamentals, companies are delivering,” said Tom Karsten, senior managing partner at Karsten Financial in Fort Worth, Texas.

Alcoa’s earnings reports are closely watched because its varied customer base provides a snapshot of a broad range of other industries. It is also a component of the Dow Jones industrial average. CSX also provides insight into economic activity because it ships a wide range of products.

Alcoa said global consumption of aluminum will grow this year by more than it had forecast just three months ago. There have been concerns that the global economic recovery will end as many European nations face mounting government debt problems and high unemployment slows growth in the U.S.

CSX, meanwhile, said it sees its the economy’s upward momentum continuing this year.

Intel’s results are considered a good gauge of the health of the economy since its sales are driven by consumers and businesses buying computers.

Frank Ingarra, co-portfolio manager of Hennessy Funds in Stamford, Conn., said Alcoa and CSX’s results lifted the market because they hit on the two themes that traders are looking for in earnings: revenue growth and optimistic outlooks.

“That’s why the earnings were so good,” Ingarra said. “You saw that top-line growth and good guidance.”

During the recession, companies that made money often did so by cutting costs rather than bringing in sales. So sales growth is a sign that business is indeed picking up.

The Commerce Department reported Tuesday that the U.S. trade deficit increased to its widest level in 18 months as an increase in exports was outpaced by rising imports. A jump in both imports and exports is a sign that the economy is growing.

Earnings will likely continue to dictate trading over the next few weeks as hundreds of companies release results.

According to preliminary calculations, the Dow rose 146.75, or 1.4 percent, to 10,363.02. The Standard & Poor’s 500 index rose 16.59, or 1.5 percent, to 1,095.34, while the Nasdaq composite index rose 43.67, or 2 percent, to 2,242.03.

NEW YORK (AP) – Stocks traded in a narrow range Monday as investors grew more cautious with the approach of second-quarter earnings reports.

The Dow Jones industrial average rose nearly 5 points. The Dow’s modest advance followed its best week in a year.

Investors were making few big moves as they waited for the release of Alcoa Inc.’s earnings report after the close of trading. So they showed little reaction to news of several corporate acqusitions.

Insurance broker Aon Corp. said it will buy human resources company Hewitt Associates for $4.9 billion in cash and stock, and Playboy Enterprises Inc. founder Hugh Hefner offered to take the media company private. Also Avon Products Inc. agreed to buy Silpada Designs for $650 million in a bid to expand its jewelry business.

Investors generally see acquisitions as a sign that companies are confident and willing to spend cash to expand.

Earnings are likely to dominate trading for the next few weeks. Investors are seeking insight into the state of the economy not only from how well companies fared during the April-June period, but also from their forecasts for the coming quarters. In particular, investors want to see whether sluggish retail sales, waning consumer confidence and high unemployment have actually hurt corporate profits.

Ahead of Alcoa’s report, analysts were upbeat but also expected that companies did see some impact from the choppiness of the economic recovery.

“We will have some good news” during earnings season, predicted Steve Stahler, president of the Stahler Group in Baton Rouge, La. “But it will be harder to find it.”

Greg Estes, fund manager at Intrepid Capital Funds in Jacksonville Beach, Fla., said of companies’ forecasts, “people are really wanting to see things get better.” He said some industries like technology were more likely to report improvement versus those that rely more on consumer spending.

In afternoon trading, the Dow Jones industrial average rose 4.61, or 0.1 percent, to 10,202.64. The Standard & Poor’s 500 index fell 0.99, or 0.1 percent, to 1,076.97, while the Nasdaq composite index fell 0.95, or less than 0.1 percent, to 2,195.50.

About two stocks fell for every one those that rose on the New York Stock Exchange, where volume came to 368.6 million shares, compared with 368.5 million at the same time Friday.

Although the market just had its biggest weekly gains in a year, some analysts are unsure about how long the rebound will last. Trading volume remains light, which means many investors are still sitting on the sidelines, and the Dow is still down 9 percent from its 2010 high reached in late April.

Economic news this week should shed some light about how well the recovery is going. In addition to earnings reports, readings are also due on retail sales, weekly jobless claims, manufacturing activity, consumer sentiment and inflation.

Shares of Alcoa and other materials stocks slipped. A drop in commodities imports in China, particularly copper, hurt shares of companies like Freeport McMoran Copper & Gold Inc. Alcoa fell 10 cents $10.84. Freeport McMoran fell $2.55, or 3.9 percent, to $63.43.

Hewitt shares jumped $11.36, or 32.1 percent, to $46.76. Aon shares fell $2.86, or 7.5 percent, to $35.48.

Playboy jumped $1.63, or 41.4 percent, to $5.57. Avon rose 3 cents to $28.30.

Bond prices traded in a tight range. The yield on the benchmark 10-year Treasury note, which moves opposite to its price, fell to 3.04 percent from 3.06 percent late Friday.

The Russell 2000 index of smaller companies fell 7.53, or 1.2 percent, to 621.90.

Overseas, Britain’s FTSE 100 rose 1.2 percent, Germany’s DAX index gained 0.2 percent, and France’s CAC-40 rose 0.4 percent. Japan’s Nikkei stock average dipped 0.4 percent after the ruling party lost elections Sunday.

NEW YORK (AP) – Stocks rose for a fourth day Friday after China renewed Google’s license to operate in the country.

Big stock movements, though, are being kept in check as investors avoid taking any risky positions ahead of earnings season, which starts next week. Stocks rose sharply earlier in the week.

The Dow Jones industrial average rose about 15 points in afternoon trading after posting its biggest three-day advance since mid-May. Broader indexes posted bigger gains, helped by Google’s advance. Trading volume was light, signaling many investors were staying out of the market.

The renewal of Google’s license was in doubt because of a strained relationship between the company and China’s government over censorship of search results. Google rose 1.7 percent.

News on the economy wasn’t as upbeat. Inventories held by wholesalers rose in May for a fifth straight month although sales dropped for the first time in more than a year. The government said wholesale inventories increased 0.5 percent and sales dropped 0.3 percent. It was the first drop since March 2009, when major stock indexes hit a 12-year low.

The moderate buying came as investors prepared for earnings reports that start next week. Traders often avoid making big bets just before earnings releases because the reports provide a good picture of how companies are performing. Forecasts for future growth will be scrutinized because disappointing economic reports in recent months have called into question the pace of a recovery.

Investors will want to know whether companies are feeling the effects of slower growth and whether corporations believe the recovery will gain momentum in the coming months. Stocks consistently fell over the past couple of months because data showed the economy was growing, but not as fast as had been forecast.

Earnings season kicks off with aluminum producer Alcoa Inc. on Monday. Other companies scheduled to release results next week include banking giants JPMorgan Chase & Co. and Bank of America Corp. General Electric Co. and chipmaker Intel Corp. are also scheduled to report earnings next week.

Overseas markets rose after a surprise interest rate hike in South Korea was seen as a sign of confidence that the global economy will continue expand. Central banks around the world, including the U.S., have kept rates at historically low rates to stimulate growth.

In early afternoon trading, the Dow rose 14.16, or 0.1 percent, to 10,153.07. The Standard & Poor’s 500 index rose 2.80, or 0.3 percent, to 1,073.05, while the technology-focused Nasdaq composite index rose 8.02, or 0.4 percent, to 2,183.42.

Stocks jumped for a third straight day on Thursday after a better-than-expected report on weekly jobless claims. Weak employment reports over the past two months had often sent stocks lower, so the steep drop in claims for unemployment benefits was a welcome sign that maybe significant job growth could occur this year.

The Dow rose nearly 121 points Thursday and was up nearly 5 percent for the holiday-shortened week heading into Friday.

Bond prices traded in a tight range. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.05 percent from 3.04 percent late Thursday.

Crude oil rose 15 cents to $75.59 per barrel on the New York Mercantile Exchange.

Google rose $7.90 to $464.46.

About two stocks rose for every one that fell on the New York Stock Exchange on the New York Stock Exchange, where volume came to 410 million shares compared with 528 million shares traded at the same point Thursday.

The Russell 2000 index of smaller companies rose 2.44, or 0.4 percent, to 622.71.

Britain’s FTSE 100, Germany’s DAX index, France’s CAC-40 and Japan’s Nikkei stock average each rose 0.5 percent.

(Bloomberg) — U.S. stocks rose, with the Standard & Poor’s 500 Index posting its first three-day rally since April, as a drop in jobless claims and higher-than-forecast sales at some retailers bolstered confidence in the economy.
DuPont Co. and Boeing Co. climbed at least 1.6 percent to lead the Dow Jones Industrial Average higher. J.C. Penney Co. and Abercrombie & Fitch Co. surged more than 6.7 percent after reporting June sales that beat estimates. Stocks pared gains after analyst Meredith Whitney cut earnings estimates for Goldman Sachs Group Inc. and Morgan Stanley.
The S&P 500 climbed 0.2 percent to 1,062.69 as of 12:25 p.m. in New York after rising as much as 1 percent and falling as much as 0.1 percent earlier today. The Dow rose 40.11 points, or 0.4 percent, to 10,058.39.
“It’s a relief rally,” Russ Koesterich, the San Francisco-based head of investment strategy for scientific active equities at BlackRock Inc., which manages $3.36 trillion in assets as the world’s largest asset manager. “There’s evidence that the global economy continues to recover. In the U.S., some retailers are doing well. Valuations are reasonable. The stock market may have found a short-term bottom.”
U.S. stocks rallied yesterday, sending the S&P 500 up 3.1 percent for its biggest gain in six weeks, as banks advanced and retail-sales growth bolstered optimism that consumer spending is weathering a drop in confidence. Still, the S&P 500 remains 13 percent below its April 23 high after a sovereign debt-crisis in Europe rattled markets and economic reports from the U.S. and China suggested that the recovery is stalling.
Jobless Claims
Economists had forecast jobless-benefit applications would fall to 460,000 from an initially reported 472,000 for the prior week, according to the median of 36 projections in a Bloomberg survey. The number of people receiving unemployment insurance dropped to the lowest point since 2008, while those getting emergency benefits also declined after Congress failed to pass legislation extending the assistance.
U.S. stocks also rose after the International Monetary Fund raised its forecast for global growth this year reflects a stronger-than-expected first half. The world economy will expand 4.6 percent in 2010, the biggest gain since 2007, compared with an April projection of 4.2 percent. Growth next year is projected to be 4.3 percent.
“It’s very encouraging,” said Stanley Nabi, New York- based vice chairman of Silvercrest Asset Management Group, which manages $9 billion. “The combination of better-than-expected jobless claims and good numbers from some of the largest retailers removed some of the gloom from the market. It was also positive to see the IMF raising its estimates.”
J.C. Penney
J.C. Penney gained 6.8 percent to $23.25. The third-biggest U.S. department-store chain said June comparable store sales rose 4.5 percent, beating Retail Metrics’ estimate of a 3.7 percent increase.
Abercrombie & Fitch rose 9.4 percent to $35.98 after it reported that same-store sales in June rose 9 percent, beating analyst estimates.
Gap Inc. shares retreated 7.3 percent to $18.28 after the retailer said same-store sales in June were unchanged. Analysts had estimated sales for the company, whose brands include Old Navy and Banana Republic, would rise 3.7 percent.
‘A Little Careful’
“I want to be a little careful here,” said Mike Ryan, New York-based head of wealth management research for the Americas at UBS Financial Services Inc., which oversees about $663 billion. “The rate of expansion has moderated. Jobless claims came in better, but private payroll growth remains weak. As for retailers, we’ve seen evidence of some good numbers which are not necessarily translated into strong retail growth.”
A gauge of S&P 500 banks fell as much as 1.1 percent after Goldman Sachs had its profit estimates for 2010 reduced by Meredith Whitney Advisory Group LLC. Goldman Sachs will earn $1.70, $3.77 and $4.64 a share in the second through fourth quarters of 2010, respectively, down from prior forecasts of $4.75, $4.24 and $5.42, according to a report from Meredith Whitney Advisory. Morgan Stanley’s second-quarter estimate was also reduced by Meredith Whitney, to 40 cents from 68 cents.
Goldman Sachs fell 1.1 percent to $134.31, while Morgan Stanley rose 0.5 percent to $24.06.
The IMF said the U.S. economy faces the risk of a “double- dip” in housing and urged the Obama administration to fix the nation’s mortgage finance system by overhauling Fannie Mae and Freddie Mac.
“The backlog of foreclosures and high levels of negative equity, combined with elevated unemployment, pose risks of a double dip in housing,” the Washington-based IMF said in a statement dated June 21 after an annual review of the country’s policies and economy. The fund sees unemployment staying above 9 percent this year and in 2011.
–With assistance from Joshua Fineman and Elizabeth Stanton in New York. Editors: Michael P. Regan, Joanna Ossinger
To contact the reporter on this story: Rita Nazareth in New York at rnazareth@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.

NEW YORK (Reuters) – The S&P 500 index briefly rose 2 percent on Wednesday, rebounding from recent losses as a bullish earnings forecast from State Street Corp (NYSE:STT – News) encouraged investors ahead of the earnings season.

Equities have been pressured in recent weeks, with the Dow Jones industrial average down seven of the past eight sessions as concerns persist about the strength of the global economy.

The Dow was (DJI:^DJI – News) was up 176.80 points, or 1.81 percent, at 9,920.42. The Standard & Poor’s 500 Index (^SPX – News) was up 19.71 points, or 1.92 percent, at 1,047.77. The Nasdaq Composite Index (Nasdaq:^IXIC – News) was up 35.26 points, or 1.68 percent, at 2,129.14.

(Reporting by Angela Moon; Editing by Padraic Cassidy)

NEW YORK (AP) – OK, you’re gutsy enough to buy on dips. Now how about buying on a dive?

After a scary slump for stocks this spring, that’s the question facing many investors. In the three months ended June 30, the Standard & Poor’s 500 index fell 11.9 percent, the biggest quarterly loss since the financial crisis. The fear is that economic growth may slow, or stall, and that’s got even bulls wondering if stocks could drop even lower.

The good news: If you can muster the courage to buy, history suggests you may be rewarded.

According to an S&P analysis of prices going back to the Great Crash of 1929, stocks tend to climb in quarters following big declines.

“The market is like a rubber band,” said S&P Chief Strategist Sam Stovall after finishing his analysis Friday. “Stretch it too far, and it’s likely to snap back.”

Time and again, the pattern seems to repeat: Investors get carried away selling but then come to their senses and start buying again.

Some details and lessons from Stovall’s numbers:

– Good follows bad seven out of 10 times.

Since Calvin Coolidge was president in the 1920s, stocks have fallen 5 percent or more in 41 quarters. But that was followed by stock rises over the next three months 29 times — or seven out or 10 times.

– Rises anticipate recoveries.

It is said the stock market looks six months or more in the future, and the S&P data bears this out. Some of the biggest rises come before economic recoveries when unemployment is still high and growth low. For example, the S&P started rising in March last year, at least three months ahead of what many people now believe was the start of the recovery.

The unfortunate corollary: Stocks also anticipate recession. That raises the prospect that the current drop could be signaling a feared double-dip, or back-to-back recessions.

– Read Horace

Sure, the Roman poet has been dead 2,000 years but he still offers insight into the market: “The harder you fall, the higher you bounce,” he once wrote. Indeed, in quarters when stocks rose after falling 15 percent or more, the rebound averaged 23 percent. The median, or the rise halfway between the highest and lowest, was 9 percent.

The big question is whether this quarter will hold to that pattern.

Steven Ricchiuto, chief economist at Mizuho Securities, isn’t convinced. His explanation is a bearish take on the old bullish line during the boom: “This time is different.”

He said that recession often clears out “excesses” of booms such as too much debt. But a year or so into this recovery, the consumer still owes too much. Consumer debt stands now at $13.5 trillion, or $44,000 per person — a fall from its peak but still more than 120 percent of wages and investment income, according to researcher Portales Partners. That’s up from 80 percent a decade ago.

Ricchiuto also thinks there are still too many people out of work to expect a strong recovery, and thus a bull market for stocks. He also fears deflation, or a consistent drop in prices. Though rare, deflation can devastate an economy, making it difficult for companies to generate higher revenue and borrowers to pay back their debt. Consumer prices fell in May, the second month in a row of drops.

“When was the last time you were worried about deflation,” said Ricchiuto. He added, “I wouldn’t be buying (stocks). I’m 100 percent cash.”

Doug Roberts, chief investment officer of Channel Capital Research, said this quarter could see a stock market bounce though he suspects it won’t amount to much.

“People thought the government would prime the pump (with stimulus spending) and then we’d have a V-shaped recovery,” he said, referring to a drop in growth followed by a sharp rebound. “But what we’re seeing is that the government IS the recovery.”

Roberts’ prediction: Stocks flat for the rest of the year.

Of course, the market has confounded even overwhelming bearish sentiment. Reflecting the popular notion at the time, Businessweek splashed these famous four words on its cover: “The Death of Equities.” The date was August 1979, just before the start of one of the biggest bull markets in history.

Not to be outdone, Time magazine ran a story in September 1988 titled, “Buy Stocks? No way.” The S&P proceeded to double over the next seven years.

If you’re thinking of buying now, note that the S&P data does include a note of caution notwithstanding its bullish portent. Sometimes those sharp rebounds are followed by sharp falls.

After dropping by double digits in earlier in 2001, stocks jumped 10 percent in the last three quarters of the year. But that was followed by three quarters of declines. Stocks eventually fell to level they had not broached in five years.

(Bloomberg) — U.S. stocks fell, with the Dow Jones Industrial Average extending its longest slide since the financial crisis of 2008, and commodities slumped as data on jobs and factory orders added to concern the economic rebound is slowing. The 10-year Treasury yield held below 3 percent.
The Dow lost 85.93 points, or 0.9 percent, to 9,646.6 and the Standard & Poor’s 500 Index retreated 0.8 percent at 1:33 p.m. Both are trading below their lowest closing levels since at least October 2009. Crude oil fell 1.7 percent to below $72 a barrel and the S&P GSCI Index of commodities lost 1 percent. Gold climbed from a five-week low on demand for a safe haven.
Today’s reports showing a decrease in jobs and a 1.4 percent drop in factory orders extended a slide that threatens to drag the S&P 500 into a bear market and follow reports yesterday showing a slowdown in manufacturing growth and a bigger-than-estimated drop in pending home sales. The latest economic releases are causing investors to question whether analysts were too optimistic in predicting 32 percent profit growth for S&P 500 companies this year.
“The earnings numbers for 2010 are aggressive unless you believe there’s a V-shaped recovery,” said Russ Koesterich, the San Francisco-based head of investment strategy for scientific active equities at BlackRock Inc., which manages $3.36 trillion in assets. “Clearly, we’re not in a V-shaped recovery,” he said. “There’s nothing that tells me that we’re at a level where the market is so cheap that you want to buy here.”
Employment Report
The S&P 500 has tumbled 16 percent from its 2010 high in April, a slump that dragged its valuation to the lowest level in a year at less than 15 times reported operating earnings.
Most European gained even as the Stoxx Europe 600 Index ended little change. The European benchmark index is trading at 11 times reported earnings, the lowest level since 2008. BHP Billiton Ltd., Rio Tinto Group and Xstrata Plc increased after the Australian government scaled back a proposed tax on mining companies. Dana Petroleum Plc jumped 22 percent in London after the Scottish oil explorer said it received a takeover approach.
Asian and Emerging Markets
The MSCI Asia Pacific Index lost 0.3 percent after Goldman Sachs Group Inc. cut its forecast for China’s growth this year to 10.1 percent from 11.4 percent as government restrictions on lending and real estate slow expansion in the world’s fastest growing major economy.
Stocks in eastern Europe rose for the first time in four days, sending MSCI’s regional index to a 2.6 percent gain, after Poland’s central bank boosted its economic growth forecast and metals producers rallied. Economic growth in emerging markets means stocks are in a “bull phase,” even after the global benchmark MSCI Emerging Markets Index fell 13 percent from its 2010 high, according to investor Mark Mobius.
“We are happy with the correction,” Mobius, who oversees $34 billion in emerging markets at Templeton Asset Management Ltd., said at a briefing today in Paris. “We’ll be able to buy cheaper stocks.”
Copper for September delivery gained 1.2 percent to $2.912 a pound. Crude oil for August delivery declined 1.7 percent to $71.70 a barrel. Futures touched $71.62, the lowest level since June 8. Prices have slipped 9 percent this week.
–With assistance from Stephen Kirkland in London. Editors: Michael P. Regan, Nick Baker
To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net; Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net.
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.

NEW YORK (MarketWatch) — U.S. stocks slumped on Wednesday, leading the market to its worst quarter since Dec. 2008, as economic concerns continued to pile on. A disappointing private-sector jobs report offset more upbeat manufacturing data ahead of Friday’s monthly employment report. The Dow Jones Industrial Average (DJIA 9,733, -41.49, -0.42%) fell 96.28 points, or 1%, to 9,774.02 on Wednesday. The S&P 500 index (SPX 1,027, -3.34, -0.32%) fell 10.53 points, or 1%, to 1,030.71, while the Nasdaq Composite (COMP 2,101, -7.88, -0.37%)fell 25.94 points, or 1.2%, to 2,109.24. For June, the Dow industrials fell 3.6%, the S&P 500 fell 5.4% and the Nasdaq dropped 6.6%. For the second quarter, the Dow lost 10%, marking its first drop after four straight quarters of growth. The S&P 500 fell 11.9% and the Nasdaq slumped 12% during the quarter, with the two indexes posting their worst quarter since Dec. 2008.

(Bloomberg) — U.S. stocks fell, sending the Standard & Poor’s 500 to a 10-month intraday low, as data on manufacturing and home sales that trailed economists’ estimates fueled concern that the economic recovery is in peril.
Banks led shares of financial companies down for the biggest loss out of 10 groups in the Standard and Poor’s 500 Index as analysts at Bank of America Corp. slashed its second- quarter earnings-per-share estimates for Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co., and Citigroup Inc., which all fell at least 0.9 percent. BP Plc rallied 3.7 percent on speculation the company is ahead of schedule in halting the Gulf of Mexico oil spill.
The S&P 500 lost 1.7 percent to 1,013.55, its lowest intraday level since September 2009, as of 11:01 a.m. in New York. The Dow Jones Industrial Average decreased 126.21 points, or 1.3 percent, to 9,647.81.
“Markets are down because we’re getting a little bit softer economic data,” said Michael Vogelzang, who helps manage $1.7 billion as chief investment officer at Boston Advisors in Boston. “Numbers are pretty much disappointing across the board. Home sales we were expecting to be soft for a while, so that’s the least amount of surprise.”
Index futures slid before the open of U.S. exchanges after the Labor Department said initial jobless claims increased by 13,000 to 472,000 in the week ended June 26, defying the median economist forecast for a decline to 455,000. The number of people receiving unemployment insurance rose, while those getting emergency benefits dropped after Congress failed to act on extending the legislation.
S&P 500’s Fall
The S&P 500 has tumbled 17 percent from this year’s high on April 23 on concern a sovereign-debt crisis in Europe and China’s moves to tame inflation will dent global growth. The gauge is 8.9 percent lower this year and has fallen for seven of the past eight days, trimming its valuation to about 15 times the reported earnings of its companies, near the cheapest level in a year, according to Bloomberg data.
Homebuyers Fade
BP’s U.S. shares rallied 4.6 percent to $30.22 even after the company said it’s sticking to its schedule for the relief wells needed to plug the leaking well in the Gulf of Mexico to be completed in August. Work continues to contain the spill, Sheila Williams, a London-based spokeswoman for BP, said by phone.
‘Ahead of Schedule’
“They are ahead of schedule,” said Fadel Gheit, an oil analyst at Oppenheimer & Co in New York. “They’re only a few hundred feet from the well right now. In less than two weeks they can be close to it, they are coming to the finish line, but once they come to it they will crawl, they will not run or walk. They do not want to leave any chance of failure. They would rather be very early but take a lot of time in the last two or three weeks.”
United Parcel Service Inc. climbed 0.4 percent to $57.12 and FedEx Corp. increased 0.2 percent to $70.22 after both were raised to “buy” from “neutral” at UBS AG.
Goldman Sachs fell 0.9 percent to $130.06. The most profitable firm in Wall Street history had its second-quarter earnings-per-share estimate slashed 51 percent by Bank of America Corp. analysts, who said the firm’s trading environment “rapidly deteriorated” since May.
Morgan Stanley slumped 2.8 percent to $22.57, JPMorgan Chase retreated 2.4 percent to $35.69, and Citigroup dropped 1.9 percent to $3.69 after their second-quarter earnings-per-share estimates were also cut.
Dendreon Drops
Dendreon tumbled 10 percent to $29. The Centers for Medicare and Medicaid Services is requesting public comments on the effects of Dendreon’s Provenge on patients with prostate cancer.
“We believe the worst case scenario contemplated here — an official CMS ruling not to reimburse for Provenge — is simply not supported by the facts,” Robert Baird analyst Raymond Christopher wrote in a note to clients today. The broker has an “outperform” recommendation on the shares.
Constellation Energy Group Inc. lost 0.7 percent to $32.03 after Barclays Capital downgraded the shares to “equal weight” from “overweight.”
Yahoo! Inc. gained 0.3 percent to $13.88 after the internet media company’s board authorized the repurchase of as much as $3 billion of the company’s shares over the next three years.
Smith & Wesson Holding Corp. climbed 4.4 percent to $4.27. The handgun manufacturer reported fourth-quarter adjusted earnings of 8 cents a share, beating analysts’ estimates of 4 cents a share.
Arena Pharmaceuticals Inc. soared 9.1 percent to $3.35 after Eisai Co. said it will sell the hunger-curbing lorcaserin drug from Arena in the U.S. if the obesity treatment is approved.
–With assistance from Adam Haigh, Mark Barton, Michelle Cortez and Trista Kelley in London. Editors: Michael P. Regan, Joanna Ossinger
To contact the reporter on this story: Kelly Bit in New York at kbit@bloomberg.net.
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.