Monday, July 2, 2012

Shrinkage! U.S. Stocks Tumble After Manufacturing Unexpectedly Shrinks





U.S. stocks declined, following the biggest June (SPX) rally since 1999 for the Standard & Poor’s 500 Index, as data showed manufacturing unexpectedly shrank, Bloomberg reports.
DuPont Co. and Caterpillar Inc. slumped at least 1.4 percent to pace losses among the largest companies. Micron Technology Inc. (MU) jumped 4.8 percent after agreeing to buy bankrupt Japanese chipmaker Elpida Memory Inc., gaining memory chip-making assets that may help it avert price swings that fueled four straight quarters of losses. Amylin Pharmaceuticals Inc. (AMLN) rallied 8.9 percent as the drugmaker will be acquired by Bristol-Myers Squibb Co. for $5.3 billion in cash.

The S&P 500 lost 0.4 percent to 1,357.40 at 10:35 a.m. New York time. The benchmark index gained 4 percent in June. The Dow Jones Industrial Average fell 73.34 points, or 0.6 percent, to 12,806.75 today. Trading in S&P 500 companies was almost in line with the 30-day average at this time of day.

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