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Mid-Day Market Update: Stocks Lower Amid Global Concerns and Company News

Strategic Insights

— 2 min read

Stocks are trending lower at mid-day trading as investors continue to digest the Federal Reserve's decision to hold interest rates unchanged while highlighting significant downside risks to the US economy. The Euro has declined below the key $1.30 level, and European stocks have finished the day lower. Several major companies have released news, including Broadcom, which has increased its Q4 revenue outlook, and Goldman Sachs, which has faced challenges in its China offerings.

Key Takeaways:

  • Broadcom (BRCM) shares are up 2.7% after increasing its Q4 revenue outlook to the high end of the prior range to about $1.8 bln, exceeding the Street view of $1.76 bln from Thomson Reuters.
  • Goldman Sachs (GS) shares are down as the bank has managed only a single offering in China in three years, despite fees from offerings growing to $2.1 billion last year from $404 million five years ago, according to Bloomberg.
  • First Solar (FSLR) has slashed its 2011 sales outlook to the range of $2.8 to $2.9 bln, below the analyst consensus of $3.19 bln on Thomson Reuters.
  • J.W. Marriott Jr. will step down as the CEO of Marriott International (MAR) next March, to be replaced by Arne Sorenson, the first person outside the Marriott family to run the company, according to the Washington Post.
  • China Petroleum & Chemical (SNP) is down despite moving ahead with acquisitions of natural gas assets, as the company faces a negative economic outlook and weak sector profits, according to the Associated Press.
  • IBM (IBM) shares are trending lower as European Union regulators have accepted concessions offered by the company to end an antitrust probe and avoid a possible fine.
  • Commodities are down, with February gold contracts falling $76.30 to $1,586.80 an ounce, and January crude oil contracts falling $4.43 to $95.71 a barrel.
  • The NYSE is down 79.44 (1.09%) to 7,198.18, the DJIA is down 114.66 (0.96%) to 11,840.28, the S&P 500 is down 12.18 (0.99%) to 1,213.55, and the Nasdaq is down 42.67 (1.65%) to 2,536.60.

Statistics:

  • The Euro has declined below the key $1.30 level.
  • Germany had sold 4.18 billion of two-year treasury notes at a yield of $0.29%.
  • Broadcom (BRCM) shares are up 2.7%.
  • First Solar (FSLR) has slashed its 2011 sales outlook to the range of $2.8 to $2.9 bln.
  • The NYSE is down 79.44 (1.09%) to 7,198.18.
  • The DJIA is down 114.66 (0.96%) to 11,840.28.
  • The S&P 500 is down 12.18 (0.99%) to 1,213.55.
  • The Nasdaq is down 42.67 (1.65%) to 2,536.60.

Sources:

  • MidnightTrader.com
  • COMTEX
  • Thomson Reuters
  • Bloomberg
  • Washington Post
  • Associated Press
  • Comtex SmarTrend Alert
  • Comtex News Network, Inc.
  • MySmarTrend.com

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