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U.S. stocks tumble on concerns about Iraq, oil

Thursday, June 12, 2014 - 02:13

June 12-Summary: Oil prices spike as Iraq violence escalates; Consumer and labor data disappoint; Lululemon profits plunge; Twitter COO tweets goodbye; GoPro announces IPO price. Lily Jamali reports.

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Major U.S. markets declined Thursday. The S&P 500 losing ground for the 3rd time in a row. That hasn't happened since early April. The Dow and Nasdaq also ended the day lower, with stocks down across sectors, except for energy. Oil prices spiked to their highest level since September as escalating violence in Iraq fueled concerns about supply disruptions. Barclays' Senior Economist Michael Gapen says rising energy costs could disrupt the U.S. economic outlook: SOUNDBITE: MICHAEL GAPEN, SENIOR ECONOMIST, BARCLAYS (ENGLISH) SAYING: "Where the US could be dramatically slowed would be from something that happens abroad. The US consumer is still the world's most sensitive energy consumer. For the rest of, the world its more about food prices." Higher oil prices could hurt at the mall. Retail sales rose in May - although at half the rate analysts expected. Meanwhile, new unemployment claims increased last week but not enough to renew job concerns. In company news, Intel raising guidance for the year thanks to better-than-expected PC demand from businesses. The stock was higher in after-hours trading following the new forecast. Lululemon cut its full-year outlook for earnings and revenue after a 60 percent plunge in quarterly profit. Board infighting and product problems have plagued the yoga wear retailer of late. The company also said its CFO will step down at the end of the fiscal year. Shares tumbled roughly 16%. Another executive is on his way out - this time at Twitter. Chief Operating Officer Ali Rowghani resigned Thursday - announcing it - how else? - but with a tweet. He didn't boost subscriber numbers as much as expected. GoPro's says its upcoming IPO will be priced between $21 and $24 a share. That puts the wearable sports camera-maker at a valuation of $3 billion. A senior adviser at BNP Paribas could be shown the door as part of a settlement with U.S. officials, who are investigating alleged sanctions violations at the French Bank. The adviser, Vivien Levy-Garboua, is also BNP's former head of compliance. Markets in Europe finished mixed.

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U.S. stocks tumble on concerns about Iraq, oil

Thursday, June 12, 2014 - 02:13