by InvestorPlace Staff | March 6, 2012 4:48 pm
The other shoe finally dropped Tuesday, as the markets took by far their worst dip in an otherwise upbeat 2012.
The Dow Jones Industrial Average finished down more than 200 points (1.6%), and the S&P 500 was down 1.5% as worries about European debt and a Chinese economic slowdown slammed the markets. Gold also was down about 2% to about $1,675, nearing a six-week low.
Before Tuesday’s pullback, the Dow and S&P had gained about 6% and 8.5%, respectively, so far this year, leaving many convinced at least a short pullback was inevitable.
Chinese stocks continued to show weakness. China Life Insurance (NYSE:LFC) lost 8.5%, gaming and casino company Melco Crown Entertainment (NASDAQ:MPEL) was down more than 7%, Internet TV company Youku.com (NASDAQ:YOKU) shed 6.6% and search provider Baidu.com (NASDAQ:BIDU) dropped 2.5%.
Financials also were hit hard, with Citigroup (NYSE:C) and Goldman Sachs (NYSE:GS) down more than 4%, Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) more than 3% lower and JPMorgan (NYSE:JPM) down 2.7%.
Internet radio company Pandora (NYSE:P) was down more than 15% in after-hours trading after a disappointing earnings report. Pandora’s fourth-quarter revenues were up 71% to $81.3 million, and full-year revenues doubled to $274.3 million, but the company suffered Q4 and annual losses of 5 cents and 19 cents per share, respectively. Revenue and earnings forecasts for the current quarter also fell below expectations.
Kyle Woodley is the assistant editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here.
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