Stocks dropped at the start of trading Wednesday as investors appeared to take a breather after propelling the markets to strong gains on Tuesday. þþThe Dow Jones industrial average fell 0.4 percent in early trading, and the Standard & Poor's 500-stock index lost 0.2 percent. The Nasdaq composite index declined 0.1 percent. þþThose three market gauges all registered increases above 1 percent on Tuesday, in part a reaction to first-quarter earnings reports from blue-chip American companies. þþIn Europe, shares were also down Wednesday after hefty increases on Tuesday. The CAC 40 in France lost 1.4 percent and the DAX in Germany fell 0.7 percent. The FTSE 100 in Britain dipped 0.2 percent and the Euro Stoxx 50, representing euro zone shares, lost 1.4 percent. þþSpain again signaled deep-seated economic strains. The Bank of Spain reported that the total amount of bad loans at the nation's banks rose to an 18-year high, or 8.15 percent, in February, up 3.79 billion euros from January. þþIf Spain becomes the next member of the European Union to require a bailout, it has the potential to be devastating, not only in Europe but also in the United States. Spain's economy is much larger than previous bailout recipients — Ireland, Greece and Portugal — and could hit banks hard if it can't steady itself. þþBefore the market opened, Halliburton posted a 22.7 percent jump in first-quarter profits, topping most Wall Street expectations. þþCompanies posting quarterly earnings after the market closes Wednesday included American Express, eBay, Yum Brands and Marriott International. þ
Source: NY Times
