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One note of hope on the European debt crisis was sounded by Doug Cote, chief market strategist of ING Investment Management. He said Greek leaders would realize that tightening the country's budget would be better than the chaos that would follow if Greece abandoned its euro neighbors. "Is there the possibility that Greece would choose Armageddon? Sure," he said. "But why they would choose to inflict more pain on the Greek people is beyond me." There was positive news on the U.S. economy, but it wasn't enough to get investors excited. Construction of homes rose 2.6 percent from March, and U.S. factory production increased 0.6 percent in April, helped by a gain in auto production. Target stock bucked the broader market and rose 24 cents after a strong earnings report. Target said revenue at stores opened at least a year rose 5.3 percent, the strongest performance in six years for that period. Target's results may illustrate that Americans are beginning to spend cautiously as economic uncertainty persists. Though the job market is still shaky, the falling price of gas has given shoppers hope. Among other stocks making big moves: JC Penney plunged 19.7 percent, the most in the S&P 500 index, after the retailer reported a bigger-than-expected first-quarter loss. Sales plummeted as shoppers are rejecting the retailer's new plan of getting rid of big sales throughout the year in favor of everyday low pricing. Abercrombie & Fitch fell 13 percent after reporting that its first-quarter net income shrank 88 percent because of higher costs and declining sales in established stores and in Europe. General Electric rose 3.2 percent, the most of the 30 stocks in the Dow, after the company said its finance unit will pay a special dividend of $4.5 billion to the parent company this year. It had suspended the payments in 2009 during a freeze in credit markets.
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