The Clinton Herald, Clinton, Iowa

Business & Technology

August 17, 2013

Dow slips to worst week of 2013

NEW YORK — Stocks fell Friday, closing out what was the worst week of the year for the Dow Jones industrial average.

The market was dragged lower by a weak performance from retailers and companies sensitive to higher interest rates. Homebuilders and banking stocks were among the best performers.

Stocks had a decent start to the week, but investors were hit hard the last three days. The Dow retreated 2.2 percent for the week, its worst in 2013. The broader Standard & Poor’s 500 index lost 2.1 percent for the week, its second-worst performance of the year.

The possibility of a cutback in the Federal Reserve’s massive bond-buying program in September has roiled the bond market, which has spilled over into stocks. The yield on the benchmark U.S. 10-year Treasury note rose to 2.83 percent, its highest level since July 2011. A week ago, the yield was 2.58 percent.

“When yields are going up like this, that’s scary for most equity investors,” said Brian Reynolds, chief market strategist at Rosenblatt Securities.

Rising bond yields have a direct impact on the cost of borrowing for everyone — from home owners trying to refinance their mortgages to companies trying to sell debt - making them a potential long-term drag on the economy. The Federal Reserve bond-buying programs were designed to keep the cost of borrowing as low as possible.

On Friday, the S&P 500 lost 5.49 points, or 0.33 percent, to 1,655.83. The Dow fell 30.72 points, or 0.2 percent, to 15,081.47 and the Nasdaq composite lost 3.34 points, or 0.1 percent, to 3,602.78.

Shares of utilities and telecommunications companies, which typically perform poorly in a higher interest-rate environment, closed broadly lower. New York-based utility Consolidated Edison Inc. fell 75 cents, or 1.3 percent, to $56.64 while California’s PG&E was down 71 cents, or 1.6 percent, to $42.64. Verizon Communications Inc. and AT&T Inc. fell 1.7 percent and 0.5 percent, respectively.

Text Only
Business & Technology
  • Smartphone kill switches are coming

    Smartphones need kill switches. It's a relatively easy solution to the pricey (and irritating) problem of smartphone theft. But who would have thought that the big carriers would team up with Apple, Google, Microsoft, Nokia, Samsung and lots of other manufacturers to voluntarily begin adding the technology by July 2015? The cooperative spirit! It makes so much sense!

    April 19, 2014

  • Minnick New director at Ashford CLINTON -- Ashford University has appointed a new vice president/campus director of its Clinton campus. Charlie Minnick has been appointed for the position. He has been in the position on an interim basis since Jan. 1. Ashford University Provost Lori

    April 19, 2014 1 Photo

  • McEleney McEleney elected to insurance board CLINTON -- A car dealership owner recently earned a spot on a national insurance board. John McEleney, of Clinton and owner of McEleney Motors, was elected to the Board of Directors of the Federated Insurance Companies. The election took place this w

    April 19, 2014 1 Photo

  • Biggest student loan profits come from grad students

    This week, the Congressional Budget Office projected that the federal government would earn roughly $127 billion from student lending during the next 10 years.

    April 18, 2014

  • NASA's moon-orbiting robot crashes down as planned

    April 18, 2014

  • Local farmers honored DES MOINES -- Iowa Secretary of Agriculture Bill Northey has announced that Marty and Michael Burken who run Blue Hyll Dairy in rural Clinton County have been named the April winners of the "Gary Wergin Good Farm Neighbor Award." Northey will present

    April 18, 2014

  • 4-19-14 FBLA photo CHS Future Business Leaders of America attend conference Thirty members of the Clinton High School Future Business Leaders of America attended their spring leadership conference at the Marriott Coralville from March 26-29. Students attending the conference competed against other Iowa students in state and

    April 17, 2014 1 Photo

  • U.S. stock market rebounds after choppy day A stock market swoon turned into a comeback Tuesday. Stocks managed a late-afternoon rebound for the second time in two days as investors seemed to brush off a report of lower confidence among homebuilders and simmering tensions in the Ukraine. The l

    April 16, 2014

  • Document shredding offered CLINTON -- A Clinton bank will provide document shredding this weekend. The free service will be held from 9 to 11 a.m. Saturday at Citizens First Bank's office at 1442 Lincoln Way. This is the 10th year the bank has offered this service, Citizens Fi

    April 15, 2014

  • Why Facebook is getting into the banking game

    Who would want to use Facebook as a bank? That's the question that immediately arises from news that the social network intends to get into the electronic money business.

    April 14, 2014

Facebook