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US stocks end lower on Egypt, Eurozone fears

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(Globalpost/GlobalPost)

US stocks Tuesday reversed early gains and ended lower on revived concerns about the eurozone and the political crisis in Egypt.

The Dow Jones Industrial Average dropped 42.55 (0.28 percent) to 14,932.41.

The broad-based S&P 500 slipped 0.88 (0.05 percent) to 1,614.08, while the tech-rich Nasdaq Composite Index dipped 1.09 (0.03 percent) to 3,433.40.

Stock markets had been higher for the early part of the day, but moved into negative territory in early afternoon as fresh clashes left several dead in Cairo and the government faced an ultimatum from the military.

Oil prices also moved higher on fears the Egypt crisis could disrupt oil supplies.

A new round of worries also erupted over the eurozone, as Portugal's foreign minister resigned in the wake of the finance minister, and after a report that Greece's bailout lenders, the International Monetary Fund, the European Union and the European Central Bank, had given Athens three days to demonstrate its reforms were still on track.

Apple gained for the second day in a row, jumping 2.3 percent to $418.49. That came after a UBS report maintained a "buy" rating with a price target of $500 for the company, according to MarketWatch.

Home improvement retailer Lowe's jumped 3.2 percent after Morgan Stanley recommended buying the stock over competitor Home Depot, citing its better valuation, among other factors. Home Depot rose 0.6 percent.

A 13 percent jump in June US sales boosted Ford shares by 2.8 percent; it was the automaker's best sales for the month since 2006.

General Motors increased 0.3 percent after reporting that June sales in the US rose 6 percent compared with a year ago. The company also announced a joint-venture with Honda to develop hydrogen fuel cell vehicles.

BlackBerry continued to fall in the wake of its disappointing earnings report Friday. It lost 5.7 percent Tuesday as a National Bank Financial note cited "very low" shipments of its new BlackBerry 10 phones. Shares have fallen 33 percent since Friday.

Independent oil and gas company Linn Energy fell 18.7 percent after disclosing that the Securities and Exchange Commission has initiated an enquiry of its proposed merger with Berry Petroleum and its financial reporting relating to its hedging strategy.

Bond prices rose. The yield on the 10-year US Treasury was 2.47 percent, down from 2.49 percent Monday, while the 30-year slipped to 3.47 percent from 3.49 percent. Bond prices move inversely to yields.

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http://www.globalpost.com/dispatch/news/afp/130702/us-stocks-end-lower-egypt-eurozone-fears-0