Warnings from European monetary policymakers that the strength of the euro could get in the way of the region’s recovery, as well as disappointing earnings reports, led U.S. stocks down today.
While earnings surpassed estimates, U.S. stocks fluctuated as investors were concerned about Europe’s debt crisis in anticipation of a gathering of euro-area leaders scheduled for tomorrow.
After yesterday’s tumble, U.S. stocks began climbing again today amid strong earnings and the news that Dell has decided to be taken private in the largest post-financial crisis leveraged buyout.
Fears of further intensity in the European debt crisis, as well as an increase in American factory orders which fell short of predictions, caused U.S. stocks to fall, sending the S&P 500 down 1.2%, its biggest decline since Nov. 14.
Manufacturing and jobs data released today pushed U.S. stocks upward, allowing the Dow to jump 148.14 points, 1.1%, to pass 14,000 for the first time in five years.
The best January gain for the Dow Jones Industrial Average in almost 20 years was trimmed as stocks fell, caused by investors considering data, including disappointing earnings, in anticipation of the jobs report due tomorrow.