Thursday, March 17

Shares bounce, but still end day with big losses

NEW YORK stocks fell sharply Tuesday as the nuclear crisis in Japan in the global markets weighed.

The stock exchange at the start of trading on news, that dangerous levels of radiation from a nuclear power plant crippled leaking were deleted. The plant was damaged last week in earthquake and tsunami. Japan, the world's third largest economy, accounts for 10 percent of US exports.

Peter Cardillo, chief market Economist at the New York brokerage house Avalon partners, said, that fear in the market had prevailed.

"It is later to ask questions to a situation where you are selling, and you," he said.

Intel Corp., National Semiconductor Corp., and other chip manufacturers were the biggest losers. Many companies are subject to Japanese factories for their products or components. Insurance companies, the shops in Japan, such as Aflac Inc., broke even.

The Federal Reserve statement that the economy is on firmer footing was shares some support.

Story: Fed says economic recovery on firmer foundation

After he fell as much as 297 points, the Dow recovered and ended on the day to close 137.74, or 1.1 per cent, to 11,885.42.

The standard & poor's 500 index lost 1,281.87 14.52 or 1.1 percent. The Nasdaq composite index fell 33.64 or 1.2 per cent to 2,667.33.

Investors sought the relative safety of the United States of Treasury bonds, sending prices higher and yields lower. The yield on the 10-year Treasury Note fell as low as 3.20 percent in overnight trading. This is the lowest yield on the 10-year note this year.

Treasury was overthrown as shares during the financial crisis prices. Treasury bonds have fallen, as the economy recovers strength and stocks have, but events such as the Japanese Quake and tsunami send investors looking for safer places, has collected their money.

Tuesday's trading showed what shares if investors have no answers yet about a crisis. The extent of the damage from the Quake and the tsunami is not yet known. And so the impact on the country and its trading partners for some time is not known.

Stocks have since the earthquake was strong fluctuating. The Dow fell 228 points Thursday, and came back 59 points Friday. The market has a long history of the bouncing back after a big drop. But a longer period of volatility is likely until the situation in Japan is clear.

All 10 groups of companies in the S & P 500 fell Tuesday. Technology stocks fared worst, by 1.6 percent. Power outages have made it almost impossible for Japanese factories for the production of semiconductors and other electronics, Kim Caughey Forrest, equity said research analyst at Fort Pitt capital group.

Intel fell 3.2 percent, the best of a share in the Dow average. National semiconductor fell also 3 percent.

Energy stocks fell as oil prices fell below $100 a barrel as analysts expected lower demand because of the earthquake. Exxon Mobil Corp fell 1.2 percent.

Aflac was between insurers to 5.6 percent. The health and life insurance company has about 75 percent of the business in Japan, but said it was prepared to deal with claims in the country. Hartford Financial Services Group Inc., which has also operations in Japan, fell 4.5 percent.

Almost four stocks fell for all which rose on the New York Stock Exchange. Trading volume was 1.3 billion shares.

The associated press and Reuters contributed to this report.

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