Stocks Set To Fall As Japan Crisis Worsens

Posted: Tue 6:10 AM, Mar 15, 2011

Stocks are headed for a sharply lower opening Tuesday, and bond prices are rising, as the nuclear crisis in Japan intensifies following a deadly earthquake and tsunami.

Dangerous levels of radiation began leaking from a crippled nuclear plant Tuesday, forcing Japan to order 140,000 people to stay indoors.

Japan's prime minister also warned that more leaks could occur.

Japan's Nikkei 225 stock average fell more than 1,000 points, or 11 percent for the day. The index fell 6 percent Monday.

In the U.S., Dow Jones industrial average futures fell 271 points, or 2.3 percent, to 11,655 ahead of the opening bell.

Standard & Poor's 500 index futures fell 35 points, or 2.7 percent, to 1,255. Nasdaq 100 index futures fell 70, or 3.1 percent, to 2,220.

Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners, said fear had taken hold in the market as traders worried about the nuclear crisis and a possible slowdown in Japan's economy, the world's third-largest.

"It's a situation where you sell, and you ask questions later," he said.

Oil prices fell $3.95 to $97.22 as analysts anticipated lower demand in the aftermath of the earthquake.

Other commodities, including gold, silver and copper, also fell.

Investors flocked to the relative safety of U.S. Treasurys, sending prices higher and yields lower.

The yield on the 10-year Treasury note dropped to 3.23 percent from 3.36 percent late Monday.

In corporate news, Impax Laboratories Inc. rose 6 percent in pre-market trading after a Collins Stewart analyst said a potential Parkinson's disease treatment could generate as much as $400 million in annual U.S. sales.

Later in the morning, the National Association of Home Builders releases its index of builder sentiment.

It's expected to show that homebuilders are still pessimistic about the housing recovery.

But many builders are hoping that the busy spring season will help
boost sales.

Burger King to Unveil New Summer Menu, McRib Rival

Comments are posted from viewers like you and do not always reflect the views of this station.

US Business News

P&G Chief Replaced by Old Boss
Procter & Gamble said A.G. Lafley has rejoined the company as president and chief executive, succeeding Bob McDonald.
Factory Deaths Raise Fast Fashion Doubts
Deadly accidents in Bangladesh factories have people questioning the costs of "fast fashion," a design trend pioneered by Spanish labels that relentlessly rotate collections to keep new styles on store racks.
Nokia, HTC Battle Over Patents
Nokia filed two new complaints against Taiwanese rival HTC for alleged patent infringement, continuing a battle in the fiercely competitive smartphone market.
News Corp. Board Approves Split
News Corp.'s board approved the company's separation into two publicly traded entities, moving a step closer to splitting its entertainment businesses from the publishing division.
Trains Leave Pipeline in Lurch
A $2 billion pipeline project intended to ship oil from West Texas's booming oil fields to California has failed to pique the interest of several big refiners in the Golden State. The culprit: the growing popularity of railroads.
Exxon Looks at Papua New Guinea Gas Assets
Exxon is in talks with Houston-based InterOil to invest in gas assets owned by the latter in Papua New Guinea, a move that could cement the country's outlook as a new energy exporter.
Court Says Tweet Libeled U.K. Politician
The High Court in London ruled that a tweet by the wife of the speaker of the House of Commons libeled a top Conservative Party figure by implying that he was a pedophile.
Google Copies Amazon's Playbook
Google increasingly appears to be following Amazon's lead in such services as a new e-commerce site, cloud computing and services for online shoppers.
SAC Executives Subpoenaed
The U.S. government issued subpoenas to four senior executives of SAC Capital Advisors who are part of Steven A. Cohen's inner circle, including the firm's president and chief compliance officer.
States' Rift on Taxes Widens
Minnesota's move to raise $2.1 billion in new taxes, largely from the wealthy, to fund government programs puts it among a handful of states controlled by Democrats that are adopting more liberal fiscal policies.