Xinhua: U.S. Stocks Open Lower on European Concerns

U.S. stocks opened lower Wednesday on renewed concerns from Europe after a rally in the previous trading day took the S&P 500 very close to its record closing high.

In the morning trading, investors' concern over Cyprus was largely replaced by continuing political deadlock in Italy.

Italian center-left head Pier Luigi Bersani was rejected by anti-establishment Five-Star Movement (M5S) for his call to form a governing alliance. Bersani reportedly said that only an "insane person" would want to govern Italy after his attempt was thwarted by comedian-turned-activist Beppe Grillo, leader of the M5S.

Analysts said if the two coalitions remained far apart and failed to form a broader coalition over the next 48 hours, there could be another vote after the inconclusive parliamentary elections in late February.

Moreover, Cyprus has been working to complete capital control measures to prevent a possible bank run by anxious depositors before the banks reopened on Thursday.

On the economic front, the National Association of Realtors will release the U.S. pending home sales index in February later in the day. The index, a leading indicator of U.S. housing activity, rose 4.5 percent in January.

Moreover, a number of regional Fed presidents are expected to give speeches during the day.

In the previous trading day, the blue-chip Dow set another all-time closing high after soaring 111.90 points to 14,559.65. The S&P 500 also rallied to 1,563.77, less than 2 points shy of its historical closing high of 1,565.15 set in October 2007.

The Dow Jones Industrial Average slumped 113.66, or 0.78 percent, to 14,445.99. The S&P 500 Index lost 11.57, or 0.74 percent, to 1,552.20. The Nasdaq Composite Index sank 24.58, or 0.76 percent, to 3,227.90. 

From: Xinhua
Time:  2013-03-28