Spain and Italy burden Europe as Germany tries to right the ship
San Francisco, CA -- (SBWIRE) -- 02/11/2013 -- United States stocks declined as a general and widespread weakness in European markets overshadowed the positive results from the blue-chip Walt Disney corporation.
The Dow Jones dropped by 42 points (0.4%), to a 13927. The Standard & Poor's 400-stock index fell a full four points (0.3%) to 1507, and the Nasdaq Composite fell 0.2% to a tally of 3165.
Among the early stock moves, the Dow component Walt Disney rallied with 1.6% after the giant reported a fiscal first-quarter earnings and revenue that topped analyst estimates, which were assisted by the growth of the media-networks business.
Zynga saw a rise of 2.6% after the social-games maker reported quality fourth-quarter adjusted profits instead of the expected losses. The company is still carrying an overhang of expected losses for the first quarter of 2013, keeping investors from being optimistic.
European markets have now erased their earlier gains in order to trade broadly and lingering worries persist regarding political and economic stability of Spain and Italy. Those concerns continue to undercut any positive effect the German data would show. The Stoxx Europe 600 fell 0.7% after initially being up 0.4% earlier in the session.
Spanish Prime Minister Mariano Rajoy has become embroiled in scandals and allegation of corruption, while in Italy, support for the Prime Minister Silvio Berlusconi has been growing. He had vowed to slash taxes for citizens if elected, which many fear will cause certain destabilization across the country, which currently is in need of fiscal report.
All the while, Germany is attempting to right the European ship, with manufacturing order for December rising by nearly 1%, exceeding expectations. Despite this data, Germany's DAX did fall 1.4% overall.
Asia saw higher marks as a surge of Japanese stocks helped to give the entire region a lift.
Japan's Nikkei Stock Average rose 3.8% to its highest point since 2008 before falling against the dollar to a three-year low. The latter effect came from the Bank of Japan Governor Masaaki Shirakawa offered to step down within the month. Investors believe it allows the opportunity for an accelerated and aggressive stimulus measures.
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