Cyprus Bailout Causes Market Selloff

Cyprus Bailout Causes Market Selloff
The New York Stock Exchange in Manhattan.

U.S. stocks slumped Monday as investors were shaken by news over the weekend that Cyprus may tax bank depositors to help fund a $13 billion bailout from the European Commission, the European Central Bank and the International Monetary Fund.

Signaling concern that this will lead to broader weakness in the euro zone’s financial system, the Dow Jones Industrial Average slipped 62 points, or 0.4 percent, to 14,452.06, after seesawing in Monday trading.

The S&P 500 dropped 8.6 points, or 0.6 percent, to 1,552.10, and the Nasdaq Composite Index shed 11.48 points, or 0.4 percent, to 3,237.59.

Meanwhile, a basket of industry stocks tracked by Footwear News, which has proven to be more volatile than the benchmark indices, dipped 0.9 percent.

The big winner of the day was J.C. Penney Inc., which swung up 6 percent after an Oppenheimer & Co. research note called out robust customer response to the department store chain’s weekend launch of Joe Fresh shops within its doors.

Aside from JCPenney, however, no other company tracked by FN eked out gains of more than 1 percent. Dick’s Sporting Goods Inc. and The Jones Group Inc. both advanced 0.6 percent and were jointly the second biggest gainers.

Footwear firms that swung down the most included Rocky Brands Inc., which fell 3 percent; Coach Inc., which slipped 2.3 percent; and Brown Shoe Co., which lost 2.1 percent.