European Debt Worries Continue to Push Market Lower
European debt worries are continuing to push the market lower today, with all three major indexes in red. All sectors in the S&P 500 are currently in red, with the worst performer being the energy sector. Stocks are falling on fears of a contagion in the euro zone. The concerns have pushed the U.S. dollar higher as investors are rushing to safe haven investments.
Following the agreement on bailout package for Ireland earlier in the week, bond market investors have now turned their attention to Portugal, another struggling economy in the euro zone. A Financial Times Deutschland report today claimed that the European Central Bank and euro zone economies are pressing Portugal to accept an Ireland like bailout package. Investors are also concerned about the situation in Spain, which is the fourth largest European economy. Any trouble in Spain could be disastrous for the euro zone.
The concerns over the situation in Europe are pushing the U.S. equity market lower, with the Dow Jones currently down 0.85% to 11,092.07, the S&P 500 is currently down 0.73% to 1,189.62 and Nasdaq is currently down 0.29% 2,535.70.
Shares of CPI International Inc. (NASDAQ: CPII) are among the few major gainers in today’s trading. The stock is soaring after the Palo Alto, California-based company agreed to be acquired by Veritas Capital. Shares of CPI International are currently up 33.03% to $19.25 on above average volume of 939,298.
