June 9th, 2010
07:52 PM ET

Stocks slump as BP shares tumble

A look at highlights from the day's business news:

Stocks slump as energy shares tumble

Stocks finished in the red Wednesday, failing to sustain earlier gain in the last hour of trade, as investors ditched energy shares amid ongoing concerns about BP's ability to survive the Gulf oil spill.

The Dow Jones industrial average fell 41 points, or 0.4 percent, with Exxon Mobil's stock down nearly 2 percent. Earlier, the index surged 125 points and broke through the 10,000 level for the first time this week, reaching 10,065.

The S&P 500 index dipped 6 points, or 0.6 percent, as Anadarko Petroleum sank more than 18% and Tesoro Corp. slipped more than 5 percent. The Nasdaq composite lost 12 points, or 0.5 percent. Both indexes were up more than 1 percent earlier in the day.

BP remained in the spotlight Wednesday, Day 51 of the oil spill disaster, as investors continued to worry how the company will weather the costs of leak. The company's stock sank more than 16 percent Wednesday.

Oil climbs above $74 on supply drop

Oil prices rose for a second day Wednesday after a report from the Energy Department showed crude inventories fell more than expected last week.

Crude oil for July delivery gained $2.39, or morethan 3 percent, to settle at $74.38 a barrel on Wednesday. The national average price for a gallon of regular unleaded gasoline fell to $2.713 from the previous day's price of $2.718, according to motorist group AAA.

Prices ticked higher after a closely-watched inventory report from the the U.S. Energy Information Administration showed that oil inventories fell more than expected last week.

Euro inching up on the dollar

The euro regained ground against the dollar for the second straight day, after touching new four-year lows earlier in the week.

The euro rose 0.8 percent against the dollar to $1.2067 Wednesday, after plummeting to the $1.18 mark earlier this week - levels not seen since the shared currency's debut on Jan. 4, 1999. The greenback also rose 0.1 percent against the Japanese yen to ¥91.55, but dipped 0.9 percent on the British pound to $1.4601.

The euro has been battered over the past three months, falling more than 12 percent, as fears about Europe's debt crisis sent investors fleeing to safe-haven investments such as the greenback.

 Treasurys rally as stocks slump

Treasury prices were mostly higher Wednesday as stocks took a hit and investors braced for upcoming auctions.

The benchmark 10-year note rose 2/32 to 102-23/32, pushing the yield down to 3.18 percent on Wednesday from 3.19 percent late Tuesday. Bond prices and yields move in opposite directions.

But the 30-year bond lost 1/32 to 104-15/32, yielding 4.11 percent. The 5-year note inched 1/32 higher to 100-23/32 and yielded 1.97 percent, while the 2-year note was up 1/32 lower to 100-1/32, yielding 0.73 percent.

Treasurys fell for most of the day, as U.S. stock markets soared above the seven-month lows hit earlier in the week. But prices reversed direction, after stocks turned lower in the last hour of
trading.

CNNMoney.com staff reporters Blake Ellis, Chavon Sutton and Hibah Yousuf contributed to this report.

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Filed under: BP • Economy • Gulf Coast Oil Spill
soundoff (5 Responses)
  1. damiao

    http://www.englishtips-self-taught.blogspot.com Economy class syndrome is very common in long trips, check out in the website.

    June 9, 2010 at 8:02 pm | Report abuse |
    • BreakingNewsBlog.us

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      READ THIS AMAZING SCOOP ABOUT HOW BP WOULD BEEN ABLE TO STOP THE OIL SPILL FROM THE EARLY DAYS !!!
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      http://bit.ly/c8y9GX
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      WHY the Press hasn't seen it in the BP video??? WHY the Press STILL don't talks about that??? is BP so powerful???
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      well, the answer is simple... BP is one of the biggest companies of the world... and one of the biggest advertisers...
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      the BP's oil spill has killed your sea, your shores, the tourism and economy... are you brave enough to talk about it?
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      June 9, 2010 at 8:22 pm | Report abuse |
  2. Matthews

    Well, considering that the US is looking at setting BP up like a bowling pin so it can seize its assets... this is no surprise, read here: http://www.tweethd.com/?article=1478

    June 9, 2010 at 8:45 pm | Report abuse |
  3. Gil

    Latest news is that BP' stock is plunging, investors are fleeing fearing a dividend freeze and one industry insider, Matt Simmons (CNN Money report) predicts BP will file chapter 11 bankruptcy within weeks. To top this all off BP is stalling on paying out claims to impacted families and businesses asking them for more and more financial records going back 3 years. They are at risk of losing homes and businesses soon. We do need to help and need to help now.

    I'm donating my music to help Global Green USA (a highly rated 4 star charity by charity navigator + CEO Matt Petersen is a Blogger here at Huff Po) with the relief effort. It's badly needed especially after seeing the CNN report today about BP not paying the claims in a timely manner. People could lose their homes and businesses because BP is stalling. This donation has been authorized by and coordinated with Global Green USA. Please read my Blog post to find out more information about what Global green is doing and hear the songs. They are doing good things and need help:

    http://gil-gilsmusic.blogspot.com/2010/06/gulf-coast-cleanup-its-bps.html

    June 10, 2010 at 6:46 am | Report abuse |
  4. Craig N. Barthelmas

    Subject: PRO-ACTIVE OIL SPILL CONTINGENCY PLAN, Dated: 1814, this is an oil spill contingency plan that has a proven extraction process. If British Petroleum’s hired goons stop authorized U.S. press from filming on American Soil just one more time, History may repeat its self!

    THE BATTLE OF NEW ORLEANS, by Johnny Horton: In 1814 we took a little trip, along with Colonel Jackson down the mighty Mississip, we took a little bacon and we took a little beans, we caught the bloody British in a town in New Orleans

    We fired our guns and the British kept a-comin', there wasn't nigh as many as there was a while ago we fired once more and they begin to runnin', on down the Mississippi to the Gulf of Mexico

    We looked down the river and we see'd the British come, there must have been a hundred of'em, beatin' on the drums They stepped so high, and they made their bugles ring, we stood by our cotton bales, and didn't say a thing

    We fired our guns and the British kept a-comin', there wasn't nigh as many as there was a while ago we fired once more and they begin to runnin', on down the Mississippi to the Gulf of Mexico

    Old Hickory said we could take 'em by surprise if we didn't fire our muskets 'Till we looked 'em in the eye, we held our fire 'Till we see'd their faces well Then we opened up our squirrel guns And really gave 'em – well we

    Fired our guns and the British kept a-comin', there wasn't nigh as many as there was a while ago we fired once more and they begin to runnin', on down the Mississippi to the Gulf of Mexico

    Yeah, they ran through the briars And they ran through the brambles And they ran through the bushes Where the rabbit couldn't go They ran so fast That the hounds couldn't catch 'em On down the Mississippi to the Gulf of Mexico

    We fired our cannon 'til the barrel melted down So we grabbed an alligator and we fought another round We filled his head with cannon balls, and powdered his behind And when we touched the powder off the gator lost his mind

    We fired our guns and the British kept a-comin', there wasn't nigh as many as there was a while ago we fired once more and they begin to runnin', on down the Mississippi to the Gulf of Mexico

    Yeah, they ran through the briars And they ran through the brambles And they ran through the bushes Where the rabbit couldn't go They ran so fast That hounds couldn't catch 'em On down the Mississippi to the Gulf of Mexico. Go Johnny!

    We posted a PRO-ACTIVE OIL SPILL CONTINGENCY PLAN, Dated: 10 May 2010, this is a post oil spill contingency plan that has a proven Oil Spill extraction process and a patented Hydro-Carbon (emissions free) recycling technology.

    We’ve found a pre-processed material and developed an action plan that will extract up to 98% of oil spill contaminants from the surface waters of the Gulf of Mexico. It also includes contingencies for, re-processing all of the oil drenched materials back into re-usable fuels and commodities creating, long term renewable energy revenues for the community.

    We all know that BP has been feeding us misinformation and then trying to minimize their cost by denying problems exist. Yes! We sent BP and other agencies our plan. Operations of this nature have a price tag associated with them and so, it would appear that they have no wish to spend anything on an oil spill they can’t control or that won’t go back into their pockets. This cannot be allowed to go on any longer! We have four suggestions to remedy this situation.

    a. Executive orders from the president to keep BP within five miles of their oil rig to work on plugging their oil well.
    b. Executive orders from the president keeping BP completely out of the state containment and clean-up process.
    c. Executive orders from the president to keep BP paying for the affected business and state clean-up’s, on time.
    d. Find a way to approve pro-active plans rapidly and, for God’s sake, make decisions without first consulting BP.

    To date, BP has not plugged the well, contained the oil spill or even moved quickly to approve state contingency plans to keep oil off their shores. BP needs to plug their damned hole and pay the states for containment and clean-up operations.

    Thank you for your time and consideration. Sincerely, Craig N. Barthelmas ge1re22@aol.com

    June 10, 2010 at 12:55 pm | Report abuse |