June 4 - New optimism on Europe didn't save the Dow from falling yet again, though other indexes fared slightly better. Bobbi Rebell reports.
The Dow got hit again Monday- making it 4 in a row- despite new signs the euro zone will remain intact. Bank stocks in particular getting hard hit. Case in point Morgan Stanley - extending its downward slide. Investors expect a downgrade of the bank's credit and the bond markets are already treating it like a junk-rated company. In Europe: German Chancellor Angela Merkel, met with European Commission President Jose Manuel Barroso ahead of an EU summit at the end of June. She is pressing for more ambitious measures- including discussing a European body to monitor major banks. In Spain, Prime Minister Mariano Rajoy is pushing for a direct European rescue of the country's troubled banks. But bargain hunters beware: Here is the warning from S&P Capital IQ's Alec Young: SOUNDBITE: ALEC YOUNG, INTERNATIONAL EQUITY STRATEGIST, STANDARD & POOR'S CAPITAL IQ (ENGLISH) SAYING:. "I think the path of least resistance for international equities is going to be down and we would caution investors not to get too caught up in the fact that markets are very oversold in the short term or that valuations appear very cheap." New orders for factory goods fell in April for the third time in four months. Demand slipped for everything from cars and machinery to computers. Talk about the one percent - Verizon slashing jobs again - offering buyouts to 1700 workers, or about 1 percent. Here are how the final numbers looked in Europe: Germany took a big hit, but France held steady and UK markets were closed for a holiday. In the US, investors played favorites- pushing the Dow to another loss- with the S&P and the Nasdaq making a late day comeback. Bobbi Rebell, Reuters.