Global Stocks Drag on Concerns Over Spain

Hemera/Thinkstock(NEW YORK) -- Growing fears that Spain will need to be bailed out hit markets hard Monday, sending global stocks sharply lower and the euro down to a fresh two-year low against the dollar.

The Dow lost 101 points Monday to close at 12,721. The Nasdaq closed down 35 points, and the S&P lost 12 points.

In Europe stocks took a hit. The Stoxx 600 fell 2.5 percent, while the IBEX 35 of Spain lost 1.1 percent. With the yield on Spain's benchmark 10-year bond well above seven percent, investors appear to be resigned to the prospect of Spain needing a financial rescue like Greece, Ireland and Portugal.

As for earnings reports, McDonald's said Monday that its net income slipped 4 percent in the second quarter as a result of unfavorable "currency exchange rates."

In the energy sector, Halliburton says net income was flat in the second quarter as an increase in international drilling was offset by a slowdown in North America. Still, earnings beat estimates, pushing the company's stocks up 2.4 percent.

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