US close: Stocks slide as oil falls back

10 Jun 2011 22:32

Stocks tumbled amid ongoing worries over the state of the global economy, while a hike in oil production in Saudi Arabia sent oil prices lower. The Dow Jones closed down 172 at 11,951, the S&P 500 finished 18 lower at 1,270 and the NASDAQ closed down 41 points at 2,643. Much market commentary concentrated on the negative trade data out from China last night. The bitter debate between the ECB and Germany over the make-up of the Greek rescue package also affected sentiment as did news that the Federal Reserve has proposed that it be granted greater supervisory power over banks' capital plans. Energy stocks were whacked. According to the Saudi Arabian press the Kingdom may increase output unilaterally, by 500,000 barrels a day. Good Year Tire&Rubber slid following negative broker comments from JP Morgan on consumer demand for new tires. Insurer Travelers slumped after indicating that it shall slow its stock repurchase program due to the losses that it will have to face up to as a result of the multiple natural disasters which ravaged the United States this past spring.