U.S. stocks slide on economic-recovery fears

Date: Wed, 11 Aug 2010 12:00:55 -0400

U.S. stocks slide on economic-recovery fears
U.S. stocks tumble sharply, echoing a retreat by equities around the
globe, as the Federal Reserve's stimulus plan intensifies worries
about the economic recovery.

DOLLAR, YEN JUMP AS GROWTH FEARS RATTLE MARKETS
The Japanese yen hits a new 15-year high versus the U.S. dollar.

TREASURYS GAIN AHEAD OF 10-YEAR AUCTION
Yields on 2-year Treasury notes get pushed to an all-time low,
underscoring investors' appetite for U.S. debt in the face of a more
dour economic outlook by the Federal Reserve. Data showing a wide U.S.
trade deficit reinforce the attractiveness of Treasurys as well. Bond
traders look to the impending $24 billion auction of 10-year notes.

ETFS THAT SHORT TREASURYS SUFFER BIG LOSSES
Betting against Treasury bonds was supposed to be the no-brainer
strategy for 2010. Instead, shorting government debt has brought steep
losses so far this year, due to surging bond prices as investors seek
safety on worries stocks could be hit by deflationary headwinds.

GOLD PRICES EDGE ABOVE $1,200 AN OUNCE
Gold prices rise as the U.S. trade deficit widens to a record 21-month
high in June, rekindling fears that the economic recovery is
faltering.