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Credit agency warnings sink stocks

Monday, December 12, 2011 - 01:47

Dec. 12 - Summary of business headlines: Stocks dropped after three major credit agencies warn on Europe; Intel warns; Fedex busiest shipping day; Protesters ''occupy'' ports on west coast. Bobbi Rebell reports.

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A broad-based decline for U.S. stocks. Three major credit rating agencies, Fitch, Moody's and Standard & Poor's, issued new warnings that European leaders have failed to take the needed actions to tackle the debt crisis. Steven Wood of Russell Investments: SOUNDBITE: STEVEN WOOD, CHIEF MARKET STRATEGIST, RUSSELL INVESTMENTS (ENGLISH) SAYING: "I think right now you are seeing a tale of two stories. On this side of the Atlantic you are seeing a U.S. economy which is improving. Corporate profits which are improving, so that's giving the market the confidence for those up days. And then on the other side of the Atlantic, you are seeing European politicians continue to decide to not to decide and prolong their debt crisis, which is creating those down days and a lot of that volatility." Intel fell more than four percent after the top chipmaker cut its fourth quarter revenue forecast. Intel blamed a supply shortage of hard disk drives. Fedex predicts Monday will be the busiest day in its history - with an estimated 17 million packages shipped globally. That's about double its typical volume. The company says it hired 20,000 additional seasonal employees to handle the huge volume. Protesters from the "Occupy" movement switched tactics, as they disrupted U.S. ports on the west coast. They wanted to call attention to economic inequalities and high unemployment in a financial system which they say favors the wealthy. Taking a look at the closing numbers in Europe, shares posted their biggest fall in three weeks. And in the United States, the pain was broad based with all 10 Standard & Poor's industry groups losing ground. Bobbi Rebell, Reuters.

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Credit agency warnings sink stocks

Monday, December 12, 2011 - 01:47