Business
Wall Street Falls Over Greece Concerns
Stock fell on Monday after a five-week rally on concerns Greece may be unable to avoid a chaotic default as it struggles to reach terms on a new bailout package.
Athens allowed another deadline to slip as political leaders failed to respond to terms for a new bailout from the European Union and Internation Monetary Fund. Greece needs the funds by March to meet big debt repayments.
German Chancellor Angela Merkel stepped up pressure on Greece, warning that time was running short for a deal to be struck.
“It’s inevitable the risk profile that Greece represents is definitely going to cool the market tone, there is absolutely no way around that,” said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.
“That lack of clarity, the protracted nature of this crisis and the fact that it simply will not go away, it’s a bit unnerving to people who have seen the market tack on some very nice early year gains, and it forces people to want to be a little cautious.” Reuters reports.
The Dow Jones industrial average was down 39.01 points, or 0.30 percent, at 12,823.22. The Standard & Poor’s 500 Index was down 3.86 points, or 0.29 percent, at 1,341.04. The Nasdaq Composite Index was down 7.66 points, or 0.26 percent, at 2,898.00.
The S&P has rallied for five straight weeks on better-than-expected U.S. economic data, punctuated by Friday’s solid employment report, pushing the index up nearly 7 percent for the year.
Hasbro Inc fell 0.3 percent to $35.76 after the maker of Nerf foam toys and Monopoly board games reported a fourth-quarter profit just above analysts’ lowered expectations.
Humana Inc posted a big rise in fourth-quarter profit, but revenues came in below Wall Street expectations. Its shares fell 4.6 percent to $86.03. The Morgan Stanley healthcare payor index lost 0.7 percent.
Through Monday morning, of the 290 companies in the S&P 500 reporting results, 60 percent posted earnings that topped Wall Street expectations, tracking below recent quarters at this point of the reporting season.
Other companies expected to post earnings include Yum Brands Inc Pioneer Natural Resources Co, Dun and Bradstreet Corp and Anadarko Petroleum Corp.
Fidelity National Financial Inc agreed to buy O’Charley’s Inc for $9.85 a share in a deal that values the casual dining chain at $221 million in cash. O’Charley’s shares surged 42.2 percent to $9.84.
Semiconductor stocks lost ground, dragged lower by a drop in Micron Technology Inc in the first trading session after the death of its chief executive. Micron shares were off 3 percent to $7.71, while the PHLX semiconductor index dropped 1.3 percent.
Kenya made it a clean sweep at the Berlin Marathon with Sabastian Sawe winning the men’s race and Rosemary Wanjiru triumphing in the women’s.
Sawe finished in two hours, two minutes and 16 seconds to make it three wins in his first three marathons.
The 30-year-old, who was victorious at this year’s London Marathon, set a sizzling pace as he left the field behind and ran much of the race surrounded only by his pacesetters.
Japan’s Akasaki Akira came second after a powerful latter half of the race, finishing almost four minutes behind Sawe, while Ethiopia’s Chimdessa Debele followed in third.
“I did my best and I am happy for this performance,” said Sawe.
“I am so happy for this year. I felt well but you cannot change the weather. Next year will be better.”
Sawe had Kelvin Kiptum’s 2023 world record of 2:00:35 in his sights when he reached halfway in 1:00:12, but faded towards the end.
In the women’s race, Wanjiru sped away from the lead pack after 25 kilometers before finishing in 2:21:05.
Ethiopia’s Dera Dida followed three seconds behind Wanjiru, with Azmera Gebru, also of Ethiopia, coming third in 2:21:29.
Wanjiru’s time was 12 minutes slower than compatriot Ruth Chepng’etich’s world record of 2:09:56, which she set in Chicago in 2024.
