Global Economic Concerns Sink Stocks, Send Major Averages to New 2010 Lows

Includes: BKS, C, DIA, GS, PFE, QQQ, SPY, TEVA
by: Midnight Trader

4:30 PM, Jun 29, 2010 --

  • DJIA down 268.22 (-2.7%) to 9,870
  • S&P 500 down 33.33 (-3.1%) to 1,041
  • Nasdaq down 85.47 (-3.9%) to 2,135


  • Hang Seng down 2.3%
  • Nikkei down 1.3%
  • FTSE down 3.1%


(+) TEVA gets FDA OK for generic Effexor.

(+) RZ inks deal with Hyundai to develop jointly renewable energy and electric vehicles.


(-) MU results beat year-ago earnings but shipments news weighs.

(-) JBL upgraded but following broader market lower.

(-) WFC, BAC down as report says lower sales will follow credit card swipe fees.

(-) GOOG making slight change to search in China.

(-) BIDU rival to GOOG also down in active trading.

(-) TCK reports serious incident at Greenhills.

(-) CAGC issuing new stock.

(-) EPCT files NDA for Ceplene in AML.

(-) TTGT initiated at Buy.

(-) SGMO reports positive study data.

(-) DIS upgraded.

(-) INO says journal publishes positive study data from company

(-) GFI sees Q4 production at upper end of guidance.

(-) RMBS continues evening gain seen on licensing deal with GE.

(-) AEZS gets positive scientific advice from EMA for phase 3 colorectal cancer trial.

(-) MMM gained last evening after guiding for Q2 sales in line to above Street view.


Already sharply lower stock averages plumbed new depths late in the regular trading day before again paring those losses just slightly into the final bell. Global stocks tumbled after two reports rattled confidence in the Chinese and U.S. economic recoveries and fresh concerns surrounding euro-zone debt were stirred again.

Down over 300 points at different times during the trading day, the blue-chip DJIA closed down 268 points, or 2.7%, at 9,870, below the key 10,000 line and marking the lowest close of 2010. The S&P 500 and the Nasdaq Composite closed down 3.1% to 3.9%, respectively, also charting fresh 2010 lows.

Two-year Treasury yields hit new record lows, the VIX volatility index soars and safe-haven funds flowed back into gold even as the dollar gained.

Already down sharply, the major stock indexes deepened their losses after the Conference Board's confidence index dropped to 52.9 in June from a revised 62.7 the month before. Earlier the S&P/Case-Shiller index showed home prices in 20 U.S. cities rising in April, with the jump mostly attributed to a tax credit.

Tuesday's global slide was kicked off as China's main stock index closed down more than 4% at a 14-month low.

The Conference Board said its leading economic indicator for China rose 0.3% in April, correcting a previous reading of 1.7% increase, which the group said was the result of a calculation error. The 0.3% reading is a sharp pullback from the 1.2% rise recorded in March.

Pfizer (NYSE:PFE) fell after the U.S. Supreme Court rejected the drugmaker's appeal of a ruling that reinstated U.S. lawsuits by Nigerian families that said Pfizer tested antibiotics on their children without consent. The top court did not review the ruling by a New York appeals court that allowed the lawsuits regarding harm caused by the drug Trovan to go forward. Pfizer had conducted tests of the drug in 1996, and families said that some of those who were treated with Trovan died as a result.

Teva Pharmaceutical (NASDAQ:TEVA) announced FDA approval of Venlafaxine HCl ER Capsules, the company's generic version of Wyeth's antidepressant Effexor XR. Shipment is expected to commence on July 1, 2010, as per the terms of the 2006 agreement with Wyeth.

Google (NASDAQ:GOOG) will change how Internet users in China access its search service following objections from that country's government about Google's strategy of redirecting Chinese users to an uncensored site in Hong Kong, The Wall Street Journal reported.

Barnes & Noble (NYSE:BKS) was down by double digits in morning trade after its fourth quarter loss was greater than expected and the company warned of tough times ahead. The bookseller posted a fourth quarter loss of $32 million, or 89 cents a share excluding one-time gains, from $2.7 million, or 5 cents a share, a year ago. Revenue increased by 19% to $1.32 billion. Analysts polled by FactSet Research had expected loss of 82 cents a share on revenue of $1.28 billion. Looking ahead, Barnes & Noble sees a first quarter loss of 85 cents to $1.15 cents a share, while analysts polled by Thomson Reuters had expected a loss of 44 cents a share.

Goldman Sachs (NYSE:GS) and Citigroup (NYSE:C) may have over 10 years to trim stakes in internal hedge funds and private equity units as a part of a financial reform bill agreed to last week, Bloomberg reports. Rules that cut banks' investments in their own funds would apply 15 months to two years after a law is passed. After that, banks would have a chance for three, one-year extensions, the report said. Then they can seek another five-year extension for "illiquid" funds, the report said.