| Dow | 11,993.16 | -51.24 | -0.43% |
By: Abby Schultz, JeeYeon Park
Stocks closed lower, although considerably off the lows of the day, as investors assessed how the massive quake in Japan was likely to affect stocks and the global economy.
The Dow Jones Industrial Average fell 51.24 points, or 0.43 percent, to 11,993.16, falling below the psychologically important 12,000 benchmark, after ending the previous week lower. The blue-chip index fell as much as 147 points during the session.
The S&P 500 fell 7.89 points, or 0.6 percent, to close below 1,300 at 1,296.39. The tech-heavy Nasdaq fell 14.64 points, or 0.5 percent, to close at 2,700.97.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, gained more than 5 percent to close above 21.
Most key S&P 500 sectors declined, led by utilities and consumer discretionary, while energy rose slightly.
Japan’s benchmark Nikkei closed down more than 6 percent amid fears about how the earthquake will affect the country’s economy, while the iShares MSCI Japan index [EWJ 10.05 -0.76 (-7.03%) ] ETF plunged 9 percent.
It's difficult for investors to be upbeat in the immediacy of the event, said James Paulsen, chief investment strategist at Wells Capital Management in Minneapolis. "I think that's more of what we are dealing with right here," Paulsen said.
Investors are also wrestling with the notion of how an economic hit to Japan, combined with slowing growth out of China, will affect the global economy, he said.
But, Paulsen added, "there are investors that are looking at Japan eliminating in one trade day its entire advance since last fall, and buying." And if they haven't, he said, that may happen later in the week.
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