Stocks Plunge Amid Europe Debt Concerns and Weak Chinese Data

Strategic Insights -

Stocks took a sharp drop at mid-session due to renewed concerns over Europe's debt crisis and disappointing economic news from China. Investors were focused on the sovereign debt crisis, which led to a financial sector rout. Bank stocks led the decline, with Bank of America, Wells Fargo, JPMorgan, and Citigroup shares all falling. In contrast, Goldman Sachs shares rose 1%. The Dow Jones Industrial Average fell by over 100 points, while the S&P 500 and Nasdaq Composite indices also declined.

Key Takeaways:

  • Stocks plummeted at mid-session due to concerns over Europe's debt crisis and weak Chinese economic data.
  • Bank of America, Wells Fargo, JPMorgan, and Citigroup shares dropped between 0.8% and 1.5% due to the sovereign debt crisis.
  • Goldman Sachs shares rose 1% as an exception to the broader market downturn.
  • Chinese stocks fell after HSBC's preliminary purchasing managers' index (PMI) dropped to a 10-month low of 51.1 in May.
  • Shares of Apple (AAPL) declined due to a production facility explosion in China.
  • Eli Lilly & Co. (LLY) shares declined after entering into agreements to establish a biotechnology company.
  • Vertex Pharmaceuticals (VRTX) announced that the FDA approved its INCIVEK tablets for people with genotype 1 chronic hepatitis C.
  • Kodiak Oil & Gas (KOG) acquired Bakken/Three Forks leasehold and producing properties in the Williston Basin for approximately $85.5 million.
  • VeriFone Systems (PAY) and Hypercom (HYC) abandoned plans to sell Hypercom's U.S. payment systems business to Ingenico SA due to antitrust concerns.
  • Walt Disney Cop. (DIS) plans to accelerate its store opening schedule and expand into new markets, including over 40 interactive concept stores in 2011.
  • Shares of Sears Holdings (SHLD) fell after its CFO Michael D. Collins resigned.

Statistics:

  • The Dow Jones Industrial Average fell by over 100 points.
  • The S&P 500 index declined.
  • The Nasdaq Composite index plummeted.
  • Bank of America shares fell 1.3%.
  • Wells Fargo shares fell 1.2%.
  • JPMorgan shares fell 0.8%.
  • Citigroup shares fell 1.5%.
  • Goldman Sachs shares rose 1%.
  • HSBC's preliminary PMI dropped to a 10-month low of 51.1 in May.
  • Apple (AAPL) shares fell.
  • Eli Lilly & Co. (LLY) shares fell after entering into agreements to establish a biotechnology company.
  • Vertex Pharmaceuticals (VRTX) announced that the FDA approved its INCIVEK tablets for people with genotype 1 chronic hepatitis C.
  • Kodiak Oil & Gas (KOG) acquired Bakken/Three Forks leasehold and producing properties in the Williston Basin for approximately $85.5 million.
  • VeriFone Systems (PAY) and Hypercom (HYC) abandoned plans to sell Hypercom's U.S. payment systems business to Ingenico SA due to antitrust concerns.

Sources:

  • MidnightTrader.com
  • COMTEX
  • MarketWatch
  • Ticonderoga Securities
  • Fitch Ratings
  • Standard & Poor's
  • Thomson Reuters
  • United States Oil Fund (USO)
  • United States Natural Gas Fund (UNG)
  • SPDR Gold Trust (GLD)
  • Market Vectors Gold Miners (GDX)
  • iShares Silver Trust (SLV)
  • Comtex SmarTrend Alert