Stocks Plunge as Weakness Overseas and in the US Become Real
Sellers were out in full force early Tuesday as worries about the strength of the U.S. economy and weakness overseas put pressure on stocks in New York. The Dow Jones Industrial Average was losing 176 points, or 1.39%.
Before the session began, the Commerce Department said durable-goods orders dropped 7.8% in January, more than twice as wide as the expected 3% decline. Excluding transportation, orders were down 3.1% for the month. Additionally, December’s headline number was revised downward to 2.8% growth from 2.9%. Yields on Treasuries and the dollar dropped following the data. The 10-year Treasury was gaining 13/32 in price to yield 4.58%, and the 30-year bond was surging 22/32 and yielding 4.68%. The greenback extended its losses against the euro and the yen.
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