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US stocks hold up despite Cyprus crisis

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(Globalpost/GlobalPost)

US stocks closed mixed Tuesday, holding on as the Cyprus financial crisis threatened to ignite more turmoil across the European financial system.

Stocks actually rebounded from early losses after the Cyprus parliament rejected the controversial bank deposit tax that is key to the country's financial rescue, putting the entire EU-IMF bailout plan into question.

The Dow Jones Industrial Average finished up 3.76 points (0.03 percent) at 14,455.82.

The broad-based S&P 500 fell 3.76 (0.24 percent) to 1,548.34, while the tech-rich Nasdaq Composite Index lost 8.49 points (0.26 percent) at 3,229.10.

US markets and the dollar appeared to be points of refuge as the Cyprus crisis continued to unfold, with the euro sinking.

Pharmacy chain Walgreens surged 5.4 percent on buoyant fiscal second-quarter results and the announcement of a primary distribution agreement with drug services company AmerisourceBergen. Amerisource gained 3.6 percent.

Boeing shares rose 0.4 percent after Irish budget carrier Ryanair announced a massive order for 175 737 aircraft; the huge order had been reported but not confirmed earlier.

Discount footwear chain DSW dropped 6.2 percent after its fiscal fourth-quarter earnings came in below expectations. It said sales had weakened since the beginning of fiscal 2013 and forecast a flat first half.

Computer game maker Electronic Arts plunged 8.3 percent a day after it said it would not reach earnings forecasts for the current quarter and announced the resignation of chief executive John Riccitiello.

Women's sporting clothing chain Lululemon lost 2.8 percent after it recalled one of its top sellers, black yoga pants, that due to a production problem stretched to the point of potentially embarrassing transparency.

Bond prices rose. The yield on the 10-year Treasury fell to 1.91 percent from 1.96 percent late Monday, while the 30-year yield fell to 3.13 from 3.18. Bond prices and yields move inversely.

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http://www.globalpost.com/dispatch/news/afp/130319/us-stocks-hold-despite-cyprus-crisis-0