CLOSING BELL

Dow 10024.02  -112.61, Nasdaq 2222.33  -34.71, S&P 1070.71  -18.70 

The selling pressure intensified in the final hours of trading today. 

The market started the day off in the red but was able to post gains after the release of two economic reports that came in better than expected.

The ISM Manufacturing Index for May came in at 59.7, which is slightly above the 59 estimates and construction spending in April showed a +2.7% increase from the prior month. The increase surpassed the +0.1% monthly increase economist had expected. The increase in construction spending was the best monthly Increase since 1998.

But the economic reports were not enough to keep traders from selling.  Traders continue to worry about the state of finances in Europe and news that the European Central Bank (ECB) said that Eurozone banks face further writedowns over the next 18 months added to concern. Additionally, concerns over the Israeli and Palestinian tensions increasing didn’t help.  The euro fell to a new four-year low of $1.211 in response.

Bank of Canada announced today that it raised their benchmark interest rate +25 basis points, which is now at 0.50%. The rate hike makes Canada the first G-7 country to raise interest rates.

Energy stocks were weak as oil prices fell.  Oil finished the day with a -1.8% loss closing at $72.58 per barrel.

BP (BP) 36.52  -6.43, -14.97 shares continue to be punished today after the top kill method to stop the oil leak in the gulf failed.  Additionally, there are reports the U.S. government is seriously talking about the possibility of seizing control of BP’s American operations, finances and firing the CEO.

Advancing Sectors: None
Declining Sectors: Energy -4.3%, Materials -3.1%, Utilities -2.3%, Financials -2.1%, Industrials -2.1%, Consumer Discretionary -1.6%, Health Care -1.0%, Tech -0.9%, Telecom -0.8%, Consumer Staples -0.2%