• News
  • Finance

Renewed fighting in Ukraine sends stocks lower

NEW YORK (AP) -- Renewed fighting in Ukraine knocked the stock market lower Friday. Major indexes headed higher at the start of trading, then sank following news that Ukrainian soldiers attacked a Russian military convoy. U.S. government bond prices jumped as investors sought safety, driving the yield on the 10-year note to its lowest level this year. Oil prices rose.

KEEPING SCORE: The Dow Jones industrial average was down 81 points, or 0.5 percent, to 16,632 as of 1:09 p.m. Eastern time. The Standard & Poor's 500 index was down five points, or 0.3 percent, to 1,949. The Nasdaq composite lost eight points, or 0.2 percent, to 4,444.

REACTION: John Canally, the chief economic strategist at LPL Financial, said it's understandable that traders dropped stocks in response to the flare-up. “Anyone who doesn't want to lose their job over the weekend sells first and asks questions later,” he said.

Canally suspects the dispute between Russia and Ukraine will likely follow the pattern of recent months. Worrying headlines will be followed by soothing speeches. “We've been here before,” he said.

UKRAINE: Investors were rattled by news that crossed at mid-morning Eastern time that Ukrainian troops had destroyed a number of Russian military vehicles that had crossed into the country, according to NATO and the Ukrainian president.

EUROPE: The reports out of Ukraine rattled several European stock markets. Germany's DAX dropped 1.4 percent, after being up 1.1 percent earlier. France's CAC 40 lost 0.7 percent.

OIL AND BONDS: The yield on the 10-year Treasury note plunged as low as 2.30 percent, the lowest since June 2013 as investors plowed money into U.S. government bonds. The yield was 2.40 percent late Thursday. Benchmark U.S. crude oil rose 95 cents to $96.53 a barrel.

MONSTER DEAL: Monster Beverage soared 28 percent following news that Coca-Cola plans to pay $2 billion for a stake in the maker of caffeinated drinks. The deal comes as Coca-Cola's flagship soda business is flagging and “energy drinks” have become popular. Monster jumped $20.05 to $91.70.

KNOWN AS NORDY'S: Nordstrom reported a slight drop in earnings as well as sales that fell just short of analysts' estimates. The department-store's stock slid $2.84, or 4 percent, to $65.85.

HACKED: Supervalu, a grocery store chain, said hackers gained access to its computer network for handling credit-card transactions. The company said it isn't sure yet if customers' account numbers and other information were stolen. Supervalu fell 38 cents, or 4 percent, to $9.21.

User Response
0 UserComments