At the end of the week, stocks tumbled logging their fifth loss in six sessions and ending near the lows of the day. The Dow Jones Industrial Average tumbled more than 300 points on raising fears over a worsening EU debt crisis, and after investors were skeptical of President Obama’s jobs plan and its chances in congress. The resignation of a key ECB policymaker over disagreement on the central bank’s bond buying program and rumors that Greece will default this weekend spooked investors out of equities, amid a big drop in the Euro-Dollar.
Meanwhile, VeriSign (NASDAQ:VRSN), the Internet infrastructure provider, plunged 14.4% to $29.03, closing below its calculated support at $29.14 and posting the biggest decline in the broad market index after the company said its CFO resigned.
In Europe, equity markets fell to their lowest close in 2 year, as stocks erased earlier gains. The technical bounce faded, with banks exposed to the euro zone periphery debt mess among the worst performers, as political discord sparked concerns over the future of the second bailout package for debt stricken Greece, and fears over contagion.
Not even defensive sectors were spared, as consumer staples fell sharply. McDonald’s (NYSE:MCD), the world’s largest restaurant chain, tumbled 4.04% to $85.03, posting one of the biggest percentage declines in the Dow Jones Industrial Average, after August comparable sales missed expectations.
Cisco (NASDAQ:CSCO) jumped 2.58% to $16.29, closing above its calculated resistance at $16 after it was upgraded to a Buy from Hold at Auriga, while the firm raised its target price to $20 from $16. The firm said the stock should be bought aggressively at these levels ahead of the upcoming analyst day, as Cisco is now well positioned to gain market share in key segments from competitors. Juniper Networks (NASDAQ:JNPR), the provider of Internet infrastructure solutions, gained 0.19% to $21.58. Juniper was also upgraded to a Buy from Hold at Aurig, but the firm lowered its target price to $26 from $28.
Chevron (NYSE:CVX), the second largest U.S. energy producer, rallied 3.85% to $99.29, posting one of the top gains in the blue chip index, as crude oil jumped above $89 per barrel and as the company announced a new oil discovery at the Moccasin prospect in the deepwater U.S. Gulf of Mexico. Chevron was also upgraded to a Buy from Outperform at Credit Agricole.