U.S. indices ended the day in the red, even as data showed U.S. home prices are rising and Barclays declared stocks still have promise.
The Dow Jones Industrial Average closed down 90.24 points, or 0.62%, to 14421.49. The Standard & Poor’s 500 index declined 12.91 points, or 0.83%, to 1545.80.
The European Central Bank said it could cut off Cyprus banks by withdrawing liquidity assistance if no bailout deal is reached by Monday. Cyprus banks are closed through Tuesday. The two largest Cypriot banks are dependent on�Emergency Liquidity Assistance (ELA)�for funding, and its withdrawal would mean their demise – unless alternative funding sources can be found, Markit reports.
The Cypriot government revealed plans late Thursday to restructure its second-largest lender, Cyprus Popular Bank, to unlock European financial aid. At the same time, it’s planning restrictions on transactions when banks finally reopen. (More here from the Wall Street Journal.)
And if that wasn’t enough to stop traders in their tracks, here’s something that might: The American Heart Association said Thursday that energy drinks can raise blood pressure,�and “cause serious irregular heartbeats or sudden cardiac death.”�Shares of�Monster Beverage�(MNST) were down $1.53 after hours, or more than 3%, to $48.76. The danger of prolonged intervals between heartbeats, caused by energy drinks, is described in this�AHA press release on recent research.
Among stocks, Guess�(GES)�forecast annual revenue below analyst estimates, and shares fell $1.94, or 7%, to $25.01.
KB Home (KBH)�rallied 2.5% after reporting a narrower loss in its first quarter, and higher average selling prices (see Marketwatch article). Separately, the price of plywood has rallied 45% in the past year, as demand outpaces supply, WSJ reports.
Barclays said in its global outlook released Thursday that investors should stick with equities, for now.
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