Bloomberg News

U.S. Stocks Trim Gains as Telephone, Energy Companies Retreat

September 14, 2011

Sept. 14 (Bloomberg) -- U.S. stocks trimmed gains as shares of energy and telephone companies led the market lower after an early rally triggered by optimism that progress was being made to resolve Europe’s debt crisis.

The Standard & Poor’s 500 Index rose 0.2 percent to 1,174.82 at 9:44 a.m. in New York after climbing 0.6 percent earlier. The Dow Jones Industrial Average was up 19.26 points, or 0.2 percent, at 11,125.11.

U.S. stocks rose for a second day yesterday as French banks eased concerns over their access to funding and investors watched for signs of progress in taming Europe’s debt crisis.

Concern the global economy was slipping back into a recession amid a worsening sovereign-debt crisis triggered an 18 percent plunge in the S&P 500 between the end of April and Aug. 8. The index has rebounded 4.8 percent since then. Ten-year Treasury yields reached an all-time low of 1.877 percent on Sept. 12 and gold futures rallied to a record $1,923.70 an ounce on Sept. 6 as investors pursued assets considered to be the most safe.

Pessimism about the economy has deepened and confidence in both U.S. political parties has fallen, with only 20 percent saying the country is on the right course. As little as 9 percent of Americans say they are confident the economy won’t slide into a recession, according to a Bloomberg National Poll.

To contact the editor responsible for this story: Michael P. Regan at mregan12@bloomberg.net


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