The European Central Bank issued a statement Wednesday saying it had not been consulted on the bailout for Bankia, Spain’s fourth-largest bank, and that a recapitalization could not be provided by the ECB and eurozone central banks. The statement raised questions about Spain’s ability to fund internal bank bailouts that could reach as much as €100 billion.
For the day, the Dow was down 161 points, or 1.28%, to 12,419. The S&P ended lower by 19, or 1.43%, to close at 1,313. A and the Nasdaq fell 34, or 1.17%, to 2,837.
Yields on U.S. 10-year Treasury bonds sank to their lowest level in history at 1.656% as investors fleeing equities found solace in safer U.S. debt instruments.
Europe’s woes were felt in all parts of the Dow, as Alcoa (NYSE:AA) fell 3.5%, Caterpillar (NYSE:CAT) dropped 2.5%, oil stocks Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM) both lost 2.6%, and Bank of America (NYSE:BAC) shed 3.1%.
Pep Boys (NYSE:PBY) agreed to terminate a proposed merger with Gores Group to take the company private. PBY will get a $50 million breakup fee, but investors hammered the shares, with the stock selling down 20% to $8.89 on the news.
BlackBerry maker Research In Motion (NASDAQ:RIMM) announced it will lay off 2,000 employees as it battles with a slower market and recent earnings warnings. The stock tumbled another 8% from yesterday’s down day to finish at $10.35. Facebook (NASDAQ:FB) also continued its slide with another 2.25% loss on the day. FB has now lost 25% of its IPO price.
Sprint (NYSE:S) fell 3.37% to finish at $2.38 after announcing a drop-dead date for closing down its iDen Nextel Network. The axe will fall next June, after which Sprint will no longer market or sell the product.
Monsanto (NYSE:MON) broke the mold with strong earnings and an upbeat forecast, lifting the agricultural products company up 2.2% to $76.41.
- Arena Pharmaceutical (NASDAQ:ARNA): Up 4.84% (30 cents) to $6.50
- Teva (NYSE:TEVA): Up 2.89% ($1.10) to $39.20
- Verifone (NYSE:PAY): Up 1.71% (61 cents) to $30.25
- Canadian Natural (NYSE:CNQ): Down 7.53% ($2.36) to $28.98
- Nokia (NYSE:NOK): Down 7.12% (21 cents) to $2.74
- Jos. A. Bank (NASDAQ:JOSB): Down 6.38% ($3.05) to $44.74
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he is long XOM.