HP, Bank of America: Dow Movers
By Alexandra Zendrian - 06/01/12 - 4:47 PM EDT
NEW YORK (TheStreet
) -- U.S. stocks plunged Friday following a disappointing May jobs report and a sharp downward revision of April's numbers
The Dow Jones Industrial Average
dropped 275 points, or 2.2%, to close at 12,118. The S&P 500
fell 32 points, or 2.5%, to finish at 1278, while the Nasdaq Composite
lost 80 points, or .28%, to settle at 2747.
The blue-chip index has now erased this year's gains, finishing the day down 101 points, or 0.82%, in 2012.
Breadth within the Dow was negative with all 30 components posting losses.
The biggest percentage decliners among the blue chips were American Express
, Bank of America
, and Hewlett-Packard
, all of which lost more than 4%.
Shares of HP fell 6.3% to $21.25. Jefferies downgraded the stock to hold from buy
"Despite HP's solid position in cloud computing and its recently announced cost cuts, we believe most of HP's businesses will be challenged in the near to medium term," Jefferies analysts wrote in a report Friday. "Specifically we think tablets will hurt PCs (and Windows 8 will not help), smartphones will hurt printers, and European uncertainty will hurt enterprise IT spending. We trim our estimates, cut our target from $30 to $23, and downgrade to a Hold."
HP's stock has fallen 17.51% year to date.
Bank of America shares lost 4.5% to $7.02. The bank could experience an earnings squeeze as a result of the recent rally in 10-year and 5-year U.S. Treasuries
, according to a report from Deutsche Bank analysts.
Bank of America's stock has risen 26.26% year to date.
Shares of American Express dropped 4.3% to $53.43. The credit card company's stock is up 13.3% year to date.
--Written by Alexandra Zendrian in New York
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