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Stocks declined Thursday after the European Central Bank turned up the heat on Cyprus and said it will cut emergency liquidity to the nation's central bank unless Cyprus adopts a fiscal aid plan by Monday.
In the U.S., technology stocks dragged the indexes lower after Oracle reported an unexpected decline in sales in its fiscal third quarter. Oracle shares fell $3.47, or 9%, to $32.30.
The Dow Jones industrial average fell 90.24 points, or 0.62%, to 14,421.49. The Standard & Poor's 500 Index fell 12.91 points, or 0.83%, to 1,545.80. The Nasdaq composite index shed 31.59 points, or 0.97%, to 3,222.60.
The Dow's weakness today, which included a short-lived, intra-day drop of more than 100 points, could be the latest sign that the rip-roaring stock market rally, which has catapulted the Dow to fresh highs, might be running out of steam, at least in the short run, says John Praveen, chief investment strategist at Prudential International Investment Advisors.
The main stock indexes in Paris, London and Frankfurt were all lower.
The Cyprus situation as well as some weak earnings from well-known names such as Oracle and package delivery giant Federal Express, could be catalysts for a pullback.
"These increased risks are likely to cause stock markets to struggle in the near term and prompt profit taking after the strong gains thus far this year," says Praveen.
Pressure mounted on Cyprus to fix its financial system. It must raise about $7.5 billion in the next four days to avoid bankruptcy. Several plans have failed, including a proposal to tax deposits held by the nation's banks.
If the Mediterranean banking haven is unable to secure a bailout, its banks will fail and it could be forced to leave the euro currency.
In the U.S., the yield on the 10-year Treasury note fell to 1.93% from 1.96% earlier as demand increased for ultra-safe investments.
Trans-Atlantic jitters and technology stocks overshadowed encouraging data about the U.S. economy.
The number of people seeking unemployment benefits barely changed last week, the Labor Department said before the market opened.
Home sales rose in February to a fresh three-year high, according to the National Association of Realtors. It is the latest signal that the housing recovery is solidifying.
Besides technology, here are other stocks that fell:
— Struggling drug company AstraZeneca jumped after saying it would cut 2,300 more jobs worldwide and overhaul its research operations. That brings to 11,000 the number of job cuts announced in the past 13 months. Shares rose $1.77, or 3%, to $47.95.
— Publisher Scholastic Corp. plunged after shrinking demand for its best-selling "The Hunger Games" books forced it to cut its guidance for the year. The company's fiscal third-quarter loss nearly doubled. Shares fell $4.32, or 14%, to $26.75.
— Movado Group dropped after the luxury watchmaker said its fiscal fourth-quarter net income fell 26%. The stock fell $4.08, or 10%, to $33.04.
And among technology stocks that fell:
— Juniper Networks dropped 42 cents, or 2%, to $18.89.
— Cisco fell 83 cents, or 3%, to $20.84.
— IBM declined $2.80, or 1%, to $212.26.
— Intel lost 14 cents, or 0.1%, at $21.04.
In Asia, Japan's Nikkei 225 index surged 1.34% to 12,635.69. Benchmarks in Singapore, Indonesia and Taiwan also rose. South Korea's Kospi slipped 0.44% to 1,950.82. Hong Kong's Hang Seng rose 0.16% to 22,219.78.
Benchmark oil for May delivery was down $1.09 to $92.41 per barrel in electronic trading on the New York Mercantile Exchange.
On Wednesday, Federal Reserve Chairman Ben Bernanke said at the end of a two-day policy meeting that the Fed won't alter its aggressive monetary easing — $85 billion in monthly bond purchases to push down borrowing costs — until it is convinced the economy's gains can be sustained.
Fed officials reinforced their plan to keep short-term interest rates at rock-bottom levels at least until unemployment falls to 6.5%. The current unemployment rate is 7.7%.
In the U.S., technology stocks dragged the indexes lower after Oracle reported an unexpected decline in sales in its fiscal third quarter. Oracle shares fell $3.47, or 9%, to $32.30.
The Dow Jones industrial average fell 90.24 points, or 0.62%, to 14,421.49. The Standard & Poor's 500 Index fell 12.91 points, or 0.83%, to 1,545.80. The Nasdaq composite index shed 31.59 points, or 0.97%, to 3,222.60.
The Dow's weakness today, which included a short-lived, intra-day drop of more than 100 points, could be the latest sign that the rip-roaring stock market rally, which has catapulted the Dow to fresh highs, might be running out of steam, at least in the short run, says John Praveen, chief investment strategist at Prudential International Investment Advisors.
The main stock indexes in Paris, London and Frankfurt were all lower.
The Cyprus situation as well as some weak earnings from well-known names such as Oracle and package delivery giant Federal Express, could be catalysts for a pullback.
"These increased risks are likely to cause stock markets to struggle in the near term and prompt profit taking after the strong gains thus far this year," says Praveen.
Pressure mounted on Cyprus to fix its financial system. It must raise about $7.5 billion in the next four days to avoid bankruptcy. Several plans have failed, including a proposal to tax deposits held by the nation's banks.
If the Mediterranean banking haven is unable to secure a bailout, its banks will fail and it could be forced to leave the euro currency.
In the U.S., the yield on the 10-year Treasury note fell to 1.93% from 1.96% earlier as demand increased for ultra-safe investments.
Trans-Atlantic jitters and technology stocks overshadowed encouraging data about the U.S. economy.
The number of people seeking unemployment benefits barely changed last week, the Labor Department said before the market opened.
Home sales rose in February to a fresh three-year high, according to the National Association of Realtors. It is the latest signal that the housing recovery is solidifying.
Besides technology, here are other stocks that fell:
— Struggling drug company AstraZeneca jumped after saying it would cut 2,300 more jobs worldwide and overhaul its research operations. That brings to 11,000 the number of job cuts announced in the past 13 months. Shares rose $1.77, or 3%, to $47.95.
— Publisher Scholastic Corp. plunged after shrinking demand for its best-selling "The Hunger Games" books forced it to cut its guidance for the year. The company's fiscal third-quarter loss nearly doubled. Shares fell $4.32, or 14%, to $26.75.
— Movado Group dropped after the luxury watchmaker said its fiscal fourth-quarter net income fell 26%. The stock fell $4.08, or 10%, to $33.04.
And among technology stocks that fell:
— Juniper Networks dropped 42 cents, or 2%, to $18.89.
— Cisco fell 83 cents, or 3%, to $20.84.
— IBM declined $2.80, or 1%, to $212.26.
— Intel lost 14 cents, or 0.1%, at $21.04.
In Asia, Japan's Nikkei 225 index surged 1.34% to 12,635.69. Benchmarks in Singapore, Indonesia and Taiwan also rose. South Korea's Kospi slipped 0.44% to 1,950.82. Hong Kong's Hang Seng rose 0.16% to 22,219.78.
Benchmark oil for May delivery was down $1.09 to $92.41 per barrel in electronic trading on the New York Mercantile Exchange.
On Wednesday, Federal Reserve Chairman Ben Bernanke said at the end of a two-day policy meeting that the Fed won't alter its aggressive monetary easing — $85 billion in monthly bond purchases to push down borrowing costs — until it is convinced the economy's gains can be sustained.
Fed officials reinforced their plan to keep short-term interest rates at rock-bottom levels at least until unemployment falls to 6.5%. The current unemployment rate is 7.7%.
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