November 22nd, 2010
06:50 PM ET

Stocks slip amid reports of Wall Street probe

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

Bank worries drag down stocks

Bank stocks took a beating Monday after reports of a Wall Street insider trading probe, holding stocks back despite news of Ireland's bailout.

The Dow Jones industrial average slipped 25 points, or 0.2 percent, to end at 11,178.58. The index was down as much as 149 points earlier. The S&P 500 lost 2 points, or 0.2 percent, to close at 1,197.84. The Nasdaq added 14 points, or 0.6 percent, to end at 2,532.02.

The declines were broad-based, with 22 of 30 Dow components ending in the red. Bank of America was the Dow's biggest loser, dropping 3.1 percent. Other bank shares - including Citigroup, JPMorgan and Wells Fargo - also ended sharply lower.

Goldman Sachs was the S&P 500's laggard, with shares tumbling 3.4 percent following a weekend report that investigators are looking at possible insider trading allegations tied to the firm's dealings in transactions including a health-care merger.

Separately, reports said federal investigators raided the offices of several hedge funds Monday as part of a wide insider-trading probe.

Investors flock to Treasuries amid Europe jitters

After see-sawing all last week, Treasury prices pushed slightly higher Monday as fears about Europe's debt crisis increased the appeal of safe-haven U.S. debt.

Rising Treasury prices sent yields falling. Treasury prices and yields move in opposite directions.

The yield on the benchmark 10-year Treasury note fell to 2.84 percent, from its
close of 2.88 percent on Friday. The 30-year bond slid to 4.23 percent, from 4.26 percent.

The yield on the two-year note declined to 0.5 percent and the five-year note dropped to 1.47 percent.

Over the weekend, news that Ireland is formally seeking a bailout reignited concerns about other troubled European economies, said David Coard, head of fixed income trading at the Williams Capital Group.

Jitters about the economy often send investors flocking to U.S. government bonds because they are considered low risk in times of uncertainty.

– CNNMoney.com reporters Julianne Pepitone and Annalyn Censky contributed to this report.


Filed under: Business • Economy
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