As U.S. stocks tried and failed Tuesday to bounce back from the prior session's stumble to 12-year lows, analysts, technicians and would-be historians debated the significance of the declines, which may or may not signal an important market milestone.
On Tuesday, utility shares led losses, as the S&P 500 Index slid to its first close under 700 since Oct. 28, 1996, with a passel of testimony from federal officials doing nothing to calm jitters about the recession and the ailing financial system.
"Certainly when that November low of 750 was breached, getting to 700 happened relatively quickly. It's the economy and the extent [to which] corporate earnings have deteriorated," said Dean Curnutt, president of Macro Risk Advisors. "Folks are walking down the street and seeing a lot of empty storefronts."
After trading in a 150-point range on either side of zero during the day, the Dow Jones Industrial Average fell 37.27 points, or 0.6%, to 6,726.02. The S&P 500 declined 4.49 points, or 0.6%, to 696.33, and the Nasdaq Composite (RIXF) declined 1.84 points, or 0.1%, to 1,321.01.
On Monday, the Dow had closed at 6,763, a level not seen since 1997. If nothing else, the breach of 12-year lows is unusual. Other than Monday's retesting of 1997 lows, such a crossing has occurred only twice before, on Dec. 6, 1974, and April 8, 1932.
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