Tuesday, 02 October 2012 23:10
NEW YORK: US stocks fell on Tuesday after opening higher as uncertainty surrounded Spain's financial bailout and investors worried about disappointing third-quarter US earnings.
The Dow was pressured by stocks closely tied to the pace of growth, including Caterpillar Inc and Boeing Co. A major headwind for the global economy has been falling demand from Europe, which has been drifting toward recession.
Spain was said to be ready to ask the euro zone for help, but Germany has signaled that Madrid should hold off on making its request, according to European officials on Monday.
"Spain being rescued would be good for risk assets and ultimately global growth, but while the benefits are largely priced in, we're still getting conflicting signals that understandably have investors apprehensive," said Brian Barish, president of Cambiar Investors LLC in Denver.
The S&P rose nearly 6 percent in the third quarter, lifted by accommodative actions by the US Federal Reserve ...