Stocks Tumble on Europe Concern, Intel

U.S. stocks closed broadly lower Monday as doubts about a recent Europe accord and a lowered outlook by Intel Corp. spurred a broad retreat after two weeks of gains. The Dow Jones Industrial Average fell 162.87 points, or 1.34%, to 12,021.39. The S&P 500 dropped 18.72 points, or 1.49%, to 1,236.47. The Nasdaq Composite lost 34.59 points, or 1.31%, to 2,612.26.

A European summit deal to strengthen budget discipline in the euro zone failed to restore financial market confidence on Monday, forcing the European Central Bank to step in again gingerly.

After chip maker Intel Corp. cut its fourth-quarter revenue outlook Monday due to hard disk drive shortages stemming from massive flooding in Thailand, shares for the entire sector sank. Intel, based in Santa Clara, now expects fourth-quarter of $13.4 billion to $14 billion, down from $14.2 billion to $15.2 billion during the key holiday quarter.

If the Fed decides that the US economy needs another round of monetary easing, the price tag likely would be between $700 billion and $1 trillion, according to a new analysis. While the Fed has not said explicitly whether it will enact a third round of

quantitative easing – or QE3 in market parlance – speculation has grown that the central bank will step in should the economy stall again in 2012. The Fed next meets Tuesday, when the topic of more easing is likely to come up.

Pfizer Inc (NYSE:PFE), the world’s biggest drugmaker, named Chief Executive Ian Read to the additional post of chairman and authorized buying back company stock for up to $10 billion.

Crude-oil futures fell 1.7% Monday, settling at their lowest in more than two weeks as investors doubted the recently announced measures to staunch the euro zone’s debt crisis would be enough, and the dollar also rallied. Crude for January delivery declined $1.64, or 1.7%, to settle at $97.77 a barrel on the New York Mercantile Exchange.