May 09, 2012-Stocks extend Losses on State of Spanish Banks

The major U.S. index futures are pointing to a lower opening on Wednesday, with negativity built on the back of the European political developments gathering further momentum. The bleak outlook for Europe has triggered a massive exodus from risky bets, with crude oil and gold trading at fresh multi-month lows. The euro has retreated further below the $1.3000 level. The absence of any major catalysts has precluded any revival and increased the preoccupation about the political crisis brewing across the Atlantic. The Dow Industrials has briefly touched its 100-day moving average of 12,809, which was serving as a near term support. Once this level is violated to the downside, the next stop could be around the 12,756. U.S. stocks retreated sharply on Tuesday, as the political uncertainty in Greece kept traders on tenterhooks. The major averages opened lower and declined steadily in early trading, hitting their session low in late morning trading. Thereafter, the averages gradually pared their losses over the course of the session but still closed moderately lower. The Dow Industrials ended down 76.44 points or 0.59 percent at 12,932 and the S&P 500Index slid 5.86 points or 0.43 percent before closing at 1,364, its lowest closing level since April 10th. Meanwhile, the Nasdaq Composite closed at 2,946, down 11.49 points or 0.39 percent, representing a 2-month closing low.