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U.S. stocks opened lower on Wednesday, retreating after a three-day rise, with commodities falling after data showed Chinese inflation remained elevated, prompting thoughts of more monetary tightening that could tame demand. The Dow Jones Industrial Average fell 54 points to 12,706 with component Walt Disney sliding 5.2% a day after the theme-park operator reported a quarterly profit below expectations. The Standard & Poor's 500 Index declined 4 points to 1,352. The Nasdaq Composite Index fell 3 points to 2,868. A few more companies reported earnings last night and this morning. Disney, Molycorp, McDermott, MBIA, and Arcelor Mittal are lower following earnings. Macys is one of the few trading higher following earnings. The commodity space continues to correct. Nothing looks good in that sector. Potash was upgraded, but the stock is lower. The financials are back down after a one day rally. Credit Suisse was upgraded, but the stock is lower. The techs for the most part are lower. Research in Motion keeps pushing lower this time on a downgrade. The stock is down 37% from the March highs. The lone shining star within techs is Intel. After reporting spectacular earnings in April, Intel just raised their dividend for the third time in the last year and a half. Through the morning the averages pushed lower led by the commodities. The Dow dropped 80 points while the Nasdaq declined 7 points. As bad as the market looks, at least you're not going to jail. The jury in the insider trading case against Galleon founder Raj Rajaratnam found him guilty on all 14 counts this morning. During the lunch hour the selling accelerated with the Dow falling over 150 points led by commodities. In the afternoon the averages pushed lower with the Dow falling 180 points before recovering a little in the last hour. The Nasdaq fell over 40 points before rebounding in the last hour. Intel remained in positive territory while Cisco Systems is unchanged ahead of earnings tonight. The Dow Jones Industrial Average finished down 130 points at 12,630, led by a 5.4% drop in Walt Disney shares. The S&P 500 fell 15 points, or 1.1%, to 1,342, led by a 2.9% drop in energy stocks. The Nasdaq Composite lost 26 points, or 0.9%, to 2,845.
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