U.S. stocks sank Monday, pulling the Dow Jones Industrial Average into negative territory for 2011, as the lack of progress by American lawmakers in reaching a deficit-cutting agreement magnified worry that Europe’s debt crisis would spur a global downturn. “The good news is being totally discounted, and the fear of the worst-case scenarios are being priced in,” said Tim Courtney, chief investment officer of Burns Advisory Group. “The markets are aligning themselves like we’re going to have a global recession. Not only are stocks going down but commodities and real estate, so it’s betting against the economy,” said Courtney. After falling as much as 342 points, the Dow Jones industrial average finished at 11,547.31, losing 248.85 points, or 2.1 percent, and leaving the index off 0.3 percent for the year. All 30 of the Dow’s components lost value, led by Bank of America Corp., down 5 percent.
Fiat gets new top executive in U.S.
Chrysler named a new head of its Fiat brand for the United States on Monday, nearly a year after the small Italian cars made their return to the United States. Chrysler Group LLC said that Laura Soave, who was named as the Fiat brand’s U.S. head last year before the North American launch of the Fiat 500, has left the company. Timothy Kuniskis was named her replacement. Kuniskis previously served as the product marketing director for both Chrysler and Fiat.
Home sales rise slightly in October
The number of Americans who bought previously occupied homes rose slightly last month but remained at depressed levels. And more deals are being canceled at the last minute, a sign that even those who are looking to buy are worried about the housing market. Home sales rose 1.4 percent last month to a seasonally adjusted annual rate of 4.97 million, the National Association of Realtors said Monday. That’s below the 6 million that economists say is consistent with a healthy housing market and slightly ahead of last year’s sales — the worst in 13 years. The sales are measured when buyers close on the homes.
Mattel CEO to retire at year’s end at age 57
Toy maker Mattel Inc. said Monday that its CEO, Robert Eckert, will retire at the end of the year. Eckert, 57, who has led Mattel for 11 years, will be replaced Jan. 1 by Chief Operating Officer Bryan G. Stockton, 58. Eckert will remain chairman. Before he came to Mattel in 2000, he was president and CEO at Kraft Foods Inc. Stockton has “been a key architect behind Mattel’s rapid international growth and has also helped to shape many of the company’s recent growth initiatives,” said Christopher Sinclair, an independent director and leader of Mattel’s board. Mattel, the largest U.S. toy company, reported in October that its third-quarter net income rose 6 percent, thanks partly to strong sales of its Barbie line and “Cars 2”-related toys.
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