Dow Ends Worst Week of 2012

[Stocks-to-Watch]

Bears get to brag a little bit at cocktail parties this weekend. The Dow posted its largest decline in 2012 this week on both a point and percent basis. And after Friday, there’s some evidence that American investors may be underestimating the chance of a further meltdown in Europe.

On Friday, the Dow fell 89 points, or 0.7%, pulling the index 0.5% into the red for the week. Shares fell as much as 147 points in intraday trading. The S&P 500 was down 0.2% for the week, snapping a five-week winning streak. The market’s malaise had its roots overseas; Greek leaders are struggling to find the 325 million Euros in spending cuts necessary to secure the country’s next bailout.

In addition, oil futures fell after the IEA forecast much slower growth in oil demand as the global economy continues to sputter. The energy sector of the S&P 500 fell 1.1% on the day, while materials (the worst-performing sector) slid 1.8%.

In other bad news, U.S. consumer sentiment, which hit an 11-month high last month, slipped in February despite expectations it would rise.



Original Article Source by Barrons.com