Mid-Day Market Update: Stocks Lower Amid European Debt Concerns

Strategic Insights -

The US stock market is showing a downward trend as of mid-day, with concerns over the European debt crisis dampening investor sentiment. Despite a lack of economic data releases, investors are closely watching deal news, with several companies reporting significant developments. The market's downward trend is also influenced by renewed worries about the debt situation in Europe, particularly with Portugal facing pressure to request a bailout.

Key Takeaways:

  • Stocks across major indices, including the NYSE, DJIA, S&P 500, and Nasdaq, are experiencing losses, with the NYSE down 28.73 (-0.36%) to 7,951.72 and the S&P 500 down 2.92 (-0.23%) to 1,268.58.
  • The global sentiment is bearish, with the Hang Seng down 0.67% and the Nikkei up 0.11%, while the FTSE is down 0.47%.
  • Major gainers include GENZ (+1.6%), SKH (+4.5%), CPST (+1.7%), AMD (+1.9%), and HILL (+20.1%).
  • Major losers include GERN (-0.4%), INHX (-10%), T (-1.4%), TOT (-1.3%), and PDLI (-11.7%).
  • Market direction is influenced by deal news, with Genzyme (GENZ) shares higher after Sanofi-Aventis (SNY) announced takeover talks.
  • Conexant (CNXT) shares are in positive territory after Standard Microsystems (SMSC) said it will buy the chipmaker in a cash and stock deal valued at $284 million.
  • Shares of American International Group (AIG) are down after The Wall Street Journal reported that the U.S. government is reviewing bankers for a planned public offering.
  • Companies such as Duke Energy (DUK) and Progress Energy (PGN) are down after announcing a merger to create the country's largest utility.
  • Commodities are higher, with February gold contracts up 0.22% to $1,372 an ounce and February crude oil contracts up 1.57% to $89.39 a barrel.

Statistics:

  • 28.73: The point decline in the NYSE to 7,951.72 as of mid-day.
  • 2.92: The point decline in the S&P 500 to 1,268.58 as of mid-day.
  • 0.67: The percentage decline in the Hang Seng.
  • $284 million: The value of the deal between Standard Microsystems (SMSC) and Conexant (CNXT).
  • $1.372: The price of February gold contracts.
  • $89.39: The price of February crude oil contracts.
  • 0.22: The percentage increase in February gold contracts.
  • 1.57: The percentage increase in February crude oil contracts.
  • 1.82: The percentage decline in the United States Natural Gas fund (UNG).
  • 1.07: The percentage increase in iShares Silver Trust (SLV).
  • 14.3 billion: The assets under management by Epoch Investment Partners Inc. (EPHC) at the end of the December quarter.

Sources:

  • MidnightTrader
  • COMTEX
  • SmarTrend
  • Comtex News Network, Inc.
  • Reuters
  • The Wall Street Journal
  • Barron's