NEW YORK—U.S. stocks rallied from an initial tumble on Wednesday to close relatively flat as investors shook off economic woes from the European Union.
The Dow Jones Industrial Average finished Wednesday down 13 points, or 0.1 percent. The broader S&P 500 Index ended Wednesday up marginally (0.03 percent), while the technology heavy Nasdaq Composite Index finished the day higher by 8 points, or 0.3 percent. The slight loss snapped a two-day gain by the Dow.
The German Federal Statistics Office announced Wednesday that the German economy—Europe’s biggest—gained at a 3 percent annual clip in 2011, which was slightly below the pace of 2010’s growth. The news was worrisome, as some analysts say that it was not a particularly positive report given the instability in the region.
Also on Wednesday, Germany successfully sold a new batch of bonds ahead of similar sales by Italy and Spain later this week. The euro currency fell 0.55 percent to $1.2707 against the dollar.
Exchange Mergers on Hold?
European Union (EU) regulators reportedly are about to reject a proposed merger between NYSE Euronext and Deutsche Boerse AG, which would have created the world’s biggest securities exchange.
EU regulators feared that the combination would create a virtual monopoly over European derivatives trading, although the merging entities have agreed that they would spin off or sell certain overlapping functions to appease regulators.
No official word from regulators has been announced, but NYSE and Deutsche Boerse announced in a statement, “We have clearly demonstrated to the European Commission the strong benefits that our combination will bring to a broad set of stakeholders in Europe.”
The proposed merger was originally agreed upon in February 2010.
Woes at Urban Outfitters
Apparel chain Urban Outfitters Inc.’s chief executive officer, Glen Senk, abruptly resigned on Wednesday, sending shares of the company tumbling to a three-year low and he will take over as CEO of David Yurman, a luxury jewelry company.
The Philadelphia-based company operates its namesake stores as well as women’s apparel retailer Anthropologie. It has struggled in recent months to match its offerings to consumer tastes, according to Senk’s own assessment in an interview late last year.
