Stocks fall as Ukraine tensions rise; Gold gains - KSWO 7News | Breaking News, Weather and Sports

Stocks fall as Ukraine tensions rise; Gold gains

By STEVE ROTHWELL
AP Markets Writer

NEW YORK (AP) - Global stocks fell sharply Monday on rising tension over Russia's military advance into Ukraine and the threat of possible sanctions by Western governments. Treasurys and gold prices rose as investors bought safer assets. The price of crude oil rose as traders worried that Russian oil exports could be disrupted.

KEEPING SCORE: The Standard & Poor's 500 index fell 19 points, or 1.1 percent, to 1,839 as of 12:24 p.m. Eastern time. The index is on track for its biggest drop in a month. The Dow Jones industrial average fell 217 points, or 1.3 percent, to 16,106. The Nasdaq composite dropped 60 points, or 1.4 percent, to 4,247.

WORLD MARKETS: Markets also fell in Europe. Germany's DAX sank 3.4 percent, to 9,358. Britain's FTSE 100 dropped 1.5 percent, to 6,708 and Russia's benchmark stock index plunged 12 percent, to 1,115.

SAFETY FIRST: Gold and bond prices rose as investors put money into safer assets. The price of gold gained $31.20, or 2.4 percent, to $1,352.60 an ounce. The yield on the 10-year Treasury note fell to 2.61 percent from 2.65 percent late Friday.

THE REACTION: Stock markets are reacting exactly as one would expect them to in a time of heightened global political tensions, said Phil Orlando, chief equity market strategist at Federated investors. Investors are selling riskier assets like stocks and buying safer securities like U.S. Treasurys and gold.

"We just have no way of knowing how this is going to play out," Orlando said. "It's a very uncertain situation and the market is demonstrating its unhappiness with that."

RUSSIAN STOCKS: Shares of Russian companies traded in the U.S. also plummeted. Mechel, a mining company, fell 15 cents, or 8.4 percent, to $1.74; Phone company VimpelCom fell 78 cents, or 7.7 percent, to $9.37. Oil company LukOil fell $4.05, or 7.4 percent, to $50.35.

ENERGY PRICES: The price of crude oil climbed $2.12, or 2.12 percent, to $104.64 a barrel following warnings by Washington and other governments that Russia, a major oil exporter, might face sanctions after it seized control of Ukraine's Crimean Peninsula. Russia was the world's second-largest producer of oil in 2012, accounting for 12.6 percent of global supplies, according to the International Energy Agency.

ON THE HOME FRONT: The tensions in the Ukraine outweighed positive reports on the U.S. economy. U.S. manufacturing expanded at a faster pace in February as new orders and stockpiling rose.

Americans spent more in January, but the increase came from a surge in spending on heating bills during the harsh winter. Spending in areas such as autos and clothing declined. Spending rose 0.4 percent in January after a 0.1 percent gain in December, the Commerce Department said Monday. The December figure was revised down from a 0.4 percent increase.

IT'S COLD OUTSIDE: Darden Restaurants, the parent company of Olive Garden, slumped $2.61, or 5.1 percent, to $48.44 after the restaurant operator said that exceptionally rough winter weather reduced earnings in its latest quarter by about 7 cents per share. Expenses related to the company's plan to split off its Red Lobster chain also hurt earnings.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • Local NewsNewsMore>>

  • Maduro declared winner in disputed Venezuela election

    Maduro declared winner in disputed Venezuela election

    Sunday, May 20 2018 12:22 AM EDT2018-05-20 04:22:02 GMT
    Monday, May 21 2018 1:04 AM EDT2018-05-21 05:04:09 GMT
    (AP Photo/Ariana Cubillos). Venezuela's President Nicolas Maduro makes the victory sign after a meeting with former Spanish Prime Minister Jose Luis Rodriguez Zapatero at the presidential palace in Caracas, Venezuela, Friday, May 18, 2018. Maduro is se...(AP Photo/Ariana Cubillos). Venezuela's President Nicolas Maduro makes the victory sign after a meeting with former Spanish Prime Minister Jose Luis Rodriguez Zapatero at the presidential palace in Caracas, Venezuela, Friday, May 18, 2018. Maduro is se...
    Venezuelans vote Sunday in a presidential election with Nicolas Maduro expected to win a second six-year term, despite a deepening crisis that's made food scarce and inflation soar as oil production in the once...
    Venezuelans vote Sunday in a presidential election with Nicolas Maduro expected to win a second six-year term, despite a deepening crisis that's made food scarce and inflation soar as oil production in the once wealthy nation plummets.
  • School victims honored at Billboard Awards; Janet, BTS shine

    School victims honored at Billboard Awards; Janet, BTS shine

    Sunday, May 20 2018 10:51 AM EDT2018-05-20 14:51:24 GMT
    Monday, May 21 2018 1:03 AM EDT2018-05-21 05:03:21 GMT
    (AP Photos/Invision, File). FILE - In a May 7, 2018, file photo, Ariana Grande, left, attends The Metropolitan Museum of Art's Costume Institute benefit gala celebrating the opening of the Heavenly Bodies: Fashion and the Catholic Imagination exhibitio...(AP Photos/Invision, File). FILE - In a May 7, 2018, file photo, Ariana Grande, left, attends The Metropolitan Museum of Art's Costume Institute benefit gala celebrating the opening of the Heavenly Bodies: Fashion and the Catholic Imagination exhibitio...
    After celebrating her 52nd birthday and the 25th anniversary of her groundbreaking "janet.".
    After celebrating her 52nd birthday and the 25th anniversary of her groundbreaking "janet.".
  • NRA links school violence to Ritalin but experts deny link

    NRA links school violence to Ritalin but experts deny link

    Sunday, May 20 2018 6:51 PM EDT2018-05-20 22:51:57 GMT
    Monday, May 21 2018 12:54 AM EDT2018-05-21 04:54:50 GMT
    (Elizabeth Conley/Houston Chronicle via AP). Flags fly at half staff in front of the justice center at Santa Fe, Texas on Sunday, May 20, 2018. Congregations in this deeply religious community near Houston gathered Sunday for their first worship servic...(Elizabeth Conley/Houston Chronicle via AP). Flags fly at half staff in front of the justice center at Santa Fe, Texas on Sunday, May 20, 2018. Congregations in this deeply religious community near Houston gathered Sunday for their first worship servic...
    The National Rifle Association's incoming president is linking school shootings to using medications such as Ritalin.
    The National Rifle Association's incoming president is linking school shootings to using medications such as Ritalin.
Powered by Frankly