NEW YORK - continued concerns about persistent European debt crisis in the shadow of small oil prices rise and stocks pushed slightly lower on Tuesday.
Oil rose nearly $ 2 to $ 99.59 per barrel after large banks raised their forecasts for the crude oil prices. Analysts from Goldman Sachs, J.P. Morgan and Morgan Stanley predicts that an increase in global demand would drive the higher oil prices later this year. Goldman analysts announce oil prices could reach $ 135 per barrel at the end of 2012.
Stocks fluctuated between gains and losses throughout the day, with Chevron Corp. and other companies of energy with the largest gains. Energy companies in the S & P 500 increased by 1.3%, most of the groups of ten of the industry in the index.
The Dow Jones industrial average fell 25.05 points, or 0.2 percent, to close at 12,356.21. The standard & poor 500 index fell 1.09 point to 1,316.28. The Nasdaq composite dropped 12.74 or 0.5%, to 2,746.16.
Stocks had been on a tear for the first four months of the year, lifted by reports of stronger earnings, the labour market improvement and other signs of economic recovery. But all three major indexes have lost more than 3.5% this month, then the revenues remain strong. Widespread optimism was pushed aside by a variety of concerns, including the impact of high prices of oil on consumer spending and debt disorders the risk that Europe could get worse.
Markets face more troubling news on Europe Tuesday, when the main opposition of the Greece party said that he opposed the latest attempts of the Government to reduce the debt. News also dampened hopes that the country could be able to repair its finances enough to get another prepared package of the Monetary Fund International.
Ratings agency Moody has also warned that a restructuring of the debt of the Greece would be regarded as a failure. That would result in costs of borrowing for other European countries to debt short to soar.
URI Landesman, Chairman of hedge fund manager partners Platinum, said a Greek default could start a chain reaction affecting the large countries such as the Spain - the fourth economy in Europe - wreaking havoc on the world economy.
"If you had a defect in Spanish, it would be only one World Bank not affected," said Landesman.
US banks had 187 billion at stake in Spain at the end of last September, according to the most recent data of the Bank of international settlements. The amount includes holdings of government debt, derivatives contracts and other commitments.
European stocks managed to recover after a decline Monday, in part because of a reassuring report Germany optimism business has been stable.
The Germany DAX and England FTSE 100 a completed day 0.4% higher. CAC - 40 added France 0.3 per cent. The euro also rose slightly against the dollar after having fallen to a low Monday in two months.
The US Commerce Department reported that sales of new homes have increased slightly in April, but at a rate far below what would be normal in a healthy housing market. Sales increased at an annual rate of 323 000 to 300 000 in March.
New homes are attractive to their budget families because their median price is about 31% more than previously occupied homes. It is two times the typical price of a healthy economy difference. At their current pace, new home sales are on track for a sixth year of experience cuts.
Energy company El Paso Corp. has increased by 6%, most of any stock in the S & P 500, after having declared that it has itself split into two companies listed at the end of this year.
AutoZone Inc. has increased by 6% after the specialty retailer earnings jumped 12 percent on strong sales of its auto parts Duralast.
Stanley Black & Decker Inc. has dropped 2% after the announcement of the law firm of Goldfarb Branham LLP that they were investigating the Board of Directors of the company over questions about CEO compensation.
Medtronic Inc. fell 1% after earnings had forecast.
Falling share outpaced rising by a small margin on the New York Stock Exchange. Trading volume was $ 3.6 billion shares.
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