Energy leads US stocks’ decline, Treasuries as Europe worries linger

March 2nd, 2012 by

Indexes closed lower Friday and the Dow Jones Industrial Average (DJIA) snapped a three week winning streak. Treasuries advanced for the first time in four days as risk appetite soured amid worries that measures to boost lending in the EU region will not spur growth. The European Central Bank said overnight deposits touched record levels after the second leg of Long Term Refinance Operation. The Federal Reserve in the US bought $1.97 billion in long-term securities.

US stocks ended marginally low and Energy firms led the slide among S&P 500 Index’s (SPX) 10 major sectors as oil slumped below $107 a barrel. Today’s loss comes in a week that witnessed multiple milestones amid a surge in indices.

This is the Dow’s first weekly decline in three weeks.

The Dow Jones Industrial Average (DJIA) shed 2.73 points, or 0.02 percent, to close at 12,977.57, with the Energy sector losing maximum ground. The S&P 500 (SPX) lost 4.46 points, or 0.3 percent, to close at 1,369.63 on Friday, a day after President Obama urged to Congress to end $4 billion in subsidies to oil firms.  The tech-heavy NASDAQ Composite Index (COMP) lost 12.78 points, or 0.4 percent, to 2,976.19. Despite today’s losses, both the S&P 500 and the NASDAQ finished the week higher for the fourth time in a row.

US 10-year yield fell 0.05 percentage point, or 5 basis points, to 1.98 percent today. The 2-percent security maturing in Feb. 2022 gained $4.69 per $100 face value. The iShares Barclays 20 Year Treasury Bond ETF (TLT) added 1.09 points, or 0.93 percent, for the day while the Vanguard Total Bond Market ETF (BND) was up 0.17 points, or 0.20 percent over yesterday.

Stocks of social media company Yelp (YELP) jumped 64 percent to touch $24 on the NYSE on debut. Shares of Zynga (ZNGA) moved higher after the online games developer announced a new games plat form. Shutterfly (SFLY) stock soared after the company bought Kodak’s (EK) online photo business.  Overstock.com (OSTK) slid 11.19 percent after the company announced a surprise $3.4 million loss for the fourth quarter on declining sales.

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