Stocks lower on China, Greece worries
Specialist Frank Babino works on the floor of the New York Stock Exchange. On March 5, 2012, worries that Greece’s bond swap may not be going according to plan, with particular concerns over participation by the private sector, weighed on the world markets. (Feb. 21, 2012) Credit: AP
Two signs of trouble elsewhere in the world pushed U.S. stocks lower Monday: slowing economic growth in China and a possible hitch in a deal to get Greece its bailout money.
The Dow Jones industrial average closed the day down 14.76 points to 12,962.81. The Dow closed above 13,000 last week for the first time since May 2008.
Much of the market pessimism stemmed from Chinese Premier Wen Jiabao's lowering China's target rate for economic growth to 7.5 percent from 8 percent, where it has stood for years. That's a negative sign because growth in China has helped shore up the global economy since the 2008 financial crisis.
The news sent steel company stocks sharply lower. Half of the world's steel is consumed in China. The lower projection for Chinese growth also hurt stocks of U.S. materials companies that depend on China for profits. Caterpillar, which makes heavy equipment, fell 2.1 percent. Alcoa, the aluminum maker, fell 3.6 percent.
The Standard & Poor's 500 dropped 5.30 points to 1,364.33, and the Nasdaq composite index fell 25.71 points to 2,950.48.
Also weighing on the market were worries that not enough private investors will participate in a bond swap in Greece intended to lessen the country's debt burden. -- AP
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