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4:16 PM, Aug 23, 2010 --

  • DJIA down 39.21 (-0.4%) to 10,174
  • S&P 500 down 4.3 (-0.4%) to 1,067
  • Nasdaq down 20.13 (-0.9%) to 2,160


GLOBAL SENTIMENT

  • Hang Seng down 0.44%
  • Nikkei down 0.68%
  • FTSE down 0.76%


UPSIDE MOVERS

(+) PAR gets $24 per share offer from H-P (HPQ), a 33% premium to Dell's bid.

(+) HBC in talks to buy up to 70% of South Africa's Nedbank.

(+) POT tells shareholders to reject BHP's $130/share hostile bid. BHP up 1.2%.

(+) BAC gains as Fitch hiked preferred stock rating late Friday.

(+) LOW upgraded at Goldman.

(+) HP gains as Barron's says discoveries could boost rig demand.

(+) APD gets favorable Barron's coverage saying economic recovery will
help shares.

(+) ZEP upgraded at Janney Montgomery.

(+) WCRX continues Friday gain that followed credit facility update,
backed guidance.

(+) MTXX upgraded.

(+) FSLR upgraded.

(+) ROSE upgraded.

(+) CPST secures new order.

(+) COCO turns higher despite downgrade.

(+) SAFM turns higher, after initial loss when co. reports weaker profit that misses.

DOWNSIDE MOVERS

(-) HPQ declines after making offer to buy 3Par (PAR).

(-) DELL gaining modestly as HPQ launches rival bid for PAR.

MARKET DIRECTION


Stock averages end broadly, though modestly, lower and at the bottom of the session's trading range. Deal news launched stocks on a higher path early on but last week's economic-driven slump eventually fed through to sentiment to start the week.

Wall Street is bracing for more data later in the week, including housing, durable goods orders, consumer sentiment, and a revision to second-quarter gross domestic product. Overseas stocks were mixed. October crude futures end 1% lower at $73.10 a barrel, giving up early gains. But the rest of the commodity space was mixed, including a 13-year high for coffee futures.

Hewlett-Packard (HPQ) offered $24 per share for 3Par (PAR) just one week after rival Dell (DELL) agreed to buy the data storage provider for $18 a share. Meanwhile Potash Corp. of Saskatchewan (POT) formally rejected BHP Billiton's (BHP) $38.5 billion offer to acquire the fertilizer company.

In other company news:

Jazz Pharmaceuticals (JAZZ) fell after the drug maker failed to win the support of U.S. Food and Drug Administration panel for a Fibromyalgia drug that had a chemical connected to a date rape drug.

China Petroleum & Chemical (SNP) may see an increasing slump in profit as government price controls keep the company from passing along higher crude costs to customers, according to a Bloomberg report. The company saw margins from processing oil decrease by 45% in the first six months as crude costs ballooned 84%.

American International Group (AIG) gained after announcing this morning that it will pay back $4 billion in loans from the government that saved the company from collapse during the 2008 financial crisis. The money comes from a $4.4 billion debt sale at its aircraft leasing company International Lease Finance Corp. AIG still owes the government about $15 billion out of the $180 billion it borrowed to stave off collapse.

Cumberland Pharmaceuticals (CPIX) is down after the FDA extended the review period for its liver failure drug by three months. The drug, Acetadote, is already on the market to treat liver failure as a result of acetaminophen poisoning, but Cumberland has been seeking approval for the drug's use in other cases of the disease.

Shares of Washington Post Co. (WPO) were higher after Barron's reported that the market had overreacted to news about the impact of legislation on the Post's Kaplan education unit. The Post and other for-profit education companies have been heavily discounted by investors over the past several weeks as Congress debated legislation to place curbs on the misuse of student loans by for-profit education companies. But the Barron's article said the company's Kaplan Inc. education division is worth more than the negative value assigned to it by the stock market.

Source: Stocks End Lower as Deal Boost Fades