Rally stalls as Moody’s cuts Portugal debt rating
Tuesday, July 5, 2011
NEW YORK (AP) — The first week of July is off to a much slower start than the last week of June, when stocks had their biggest gains in two years.
Major indexes were mixed for much of the day Tuesday but dipped in afternoon trading after Moody’s downgraded Portugal’s debt to “junk.” The credit ratings agency cited concerns that Portugal will not be able to meet targets to reduce its deficit due to the “formidable challenges” the country is facing in cutting spending.
The Dow Jones industrial average fell 12.90, or 0.1 percent, to close at 12,569.87. The Dow had risen as many as 19 points in morning trading after the Commerce Department reported an increase in orders for manufactured goods.
The Standard & Poor’s 500 fell 1.79, or 0.1 percent, to 1,337.88. The Nasdaq composite index rose 9.74, or 0.3 percent, to 2,825.77.
Bond prices rose, sending their yields lower, as investors sought out the relative safety of Treasurys. The yield on the 10-year Treasury note fell to 3.12 percent from 3.19 percent late Friday.