Global Markets Plummet Amid Greece Debt Concerns

Strategic Insights -

Stock markets around the world closed sharply lower late in the day, with the Dow Jones Industrial Average (DJIA) dropping 258 points (-2.4%) to 10,655.30, the S&P 500 down 32.19 (-2.9%) to 1,099, and the NYSE down 220 points (-3.2%) to 6,571.42. The decline comes on top of the Dow's 6% loss for September and 12% loss for the quarter, its worst since March 2009. European markets also closed lower, with the Nikkei down 1.8%, Hang Seng down 4.4%, and the Shanghai Composite closed.

The downturn was prompted by concerns over Greece's ability to meet its bailout aid requirements, which could lead to a default. However, the release of better-than-expected Institute for Supply Management (ISM) data, showing a rise in the manufacturing index to 51.6%, briefly lifted stocks. Despite this, global concerns eventually took over, sending markets plummeting to their worst levels in roughly a year.

Eastman Kodak (EK) shares recovered from a Friday plunge after the company denied having a bankruptcy plan. On the other hand, Sangamo Biosciences (SGMO) shares fell sharply following a mid-stage study that showed its experimental drug SB-509 did not restore function and health of damaged nerves in the legs. In a positive note, ClickSoftware (CKSW) shares gained after the company announced preliminary results for the third quarter, exceeding the consensus revenue estimate.

Key Takeaways:

  • The Dow Jones Industrial Average (DJIA) dropped 258 points (-2.4%) to 10,655.30, with the S&P 500 down 32.19 (-2.9%) to 1,099 and the NYSE down 220 points (-3.2%) to 6,571.42.
  • The decline comes on top of the Dow's 6% loss for September and 12% loss for the quarter, its worst since March 2009.
  • Eastman Kodak (EK) shares recovered from a Friday plunge after the company denied having a bankruptcy plan.
  • Sangamo Biosciences (SGMO) shares fell sharply following a mid-stage study that showed its experimental drug SB-509 did not restore function and health of damaged nerves in the legs.
  • ClickSoftware (CKSW) shares gained after the company announced preliminary results for the third quarter, exceeding the consensus revenue estimate.
  • The Institute for Supply Management (ISM) data showed a rise in the manufacturing index to 51.6%, a sign of expansion, but off its February peak of 61.4%.
  • The Greek Finance Ministry approved a new budget for parliamentary review that falls short of austerity targets, potentially jeopardizing European aid for the debt-strapped nation.
  • Eastman Kodak (EK) denied having a bankruptcy plan after reports emerged that the company had hired a law firm specializing in bankruptcy.
  • Sangamo Biosciences (SGMO) shares fell sharply following a mid-stage study that showed its experimental drug SB-509 did not restore function and health of damaged nerves in the legs.
  • ClickSoftware (CKSW) announced preliminary results for the third quarter, exceeding the consensus revenue estimate.
  • Pharmaceutical Product Development (PPDI) was acquired by the Carlyle Group and Hellman & Friedman for $3.9 billion.
  • Coca-Cola Co. (KO) shares fell after JP Morgan downgraded the stock to "neutral" from "overweight" and lowered the price target to $76 from $80.
  • Intel (INTC) agreed to acquire Israeli mobile navigation software maker Telmap, but details of the deal were not disclosed.

Statistics:

  • Dow Jones Industrial Average (DJIA) down 258 points (-2.4%) to 10,655.30
  • S&P 500 down 32.19 (-2.9%) to 1,099
  • NYSE down 220 points (-3.2%) to 6,571.42
  • Institute for Supply Management (ISM) manufacturing index rose to 51.6%
  • Eastman Kodak (EK) shares down sharply after Friday plunge
  • Sangamo Biosciences (SGMO) shares fell sharply after mid-stage study
  • ClickSoftware (CKSW) shares gained after preliminary results
  • Pharmaceutical Product Development (PPDI) acquired for $3.9 billion
  • Coca-Cola Co. (KO) shares down after JP Morgan downgrade
  • Intel (INTC) acquired Israeli mobile navigation software maker Telmap

Sources:

  • Midway Trader via COMTEX
  • MarketWatch
  • Reuters
  • TheStreet.com
  • Bloomberg
  • Comtex SmarTrend Alert
  • Comtex News Network, Inc.
  • www.mysmartrend.com
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