Stocks Finish Lower, But Rally Into the Close
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Stocks closed down Tuesday, but were well off the morning lows as buyers stepped up in the final hour of trading.
The Dow Jones finished down 101 to 11,139 after trading down 308 points earlier in the session. The S&P 500 closed down 9 points and the Nasdaq closed down 7 points, both also well off the lows.
Stocks in the U.S. are faring much better than their European counterparts, which struggled with debt-contagion issues and worries about the fate of the Euro. Illustrating the carnage in Europe, the German DAX is down 10 percent since the start of September. The S&P 500 is down 4 percent over the same time period.
There was a break in the litany of negative economic data points in the U.S. as the ISM services index showed the important service sector grew ahead of expectations. The ISM's index of non-manufacturing businesses rose to 53.3, versus the consensus of 51. Still concerns about a double dip recession will remain present despite the positive data point.
Currency markets were influx Tuesday after Switzerland said it would devalue the Swiss Franc, which has been surging as speculators have run to it as a safe haven. The country's central bank said "it will no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20." The body said it is "prepared to buy foreign currency in unlimited quantities" to enforce this.
In merger news, Temple-Inland Inc. (NYSE: TIN) agreed to be acquired by International Paper (NYSE: IP) in a deal valued at approximately $4.3 billion.
Also notable was the IPO filing for private-equity firm Carlye Group.
The Dow Jones finished down 101 to 11,139 after trading down 308 points earlier in the session. The S&P 500 closed down 9 points and the Nasdaq closed down 7 points, both also well off the lows.
Stocks in the U.S. are faring much better than their European counterparts, which struggled with debt-contagion issues and worries about the fate of the Euro. Illustrating the carnage in Europe, the German DAX is down 10 percent since the start of September. The S&P 500 is down 4 percent over the same time period.
There was a break in the litany of negative economic data points in the U.S. as the ISM services index showed the important service sector grew ahead of expectations. The ISM's index of non-manufacturing businesses rose to 53.3, versus the consensus of 51. Still concerns about a double dip recession will remain present despite the positive data point.
Currency markets were influx Tuesday after Switzerland said it would devalue the Swiss Franc, which has been surging as speculators have run to it as a safe haven. The country's central bank said "it will no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20." The body said it is "prepared to buy foreign currency in unlimited quantities" to enforce this.
In merger news, Temple-Inland Inc. (NYSE: TIN) agreed to be acquired by International Paper (NYSE: IP) in a deal valued at approximately $4.3 billion.
Also notable was the IPO filing for private-equity firm Carlye Group.
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