Stocks Drop as Economic Worries Dog Market

by: Midnight Trader

4:28 PM, Aug 26, 2010 --

  • DJIA down 74 (-0.7%) to 9,986
  • S&P 500 down 8 (-0.7%) to 1,047
  • Nasdaq down 22.9 (-1%) to 2,119


  • Hang Seng down 0.11%
  • Nikkei up 0.69%
  • FTSE up 0.91%


(+) F details expansion in India, Thailand.

(+) BOBE hikes dividend.

(+) BW gets analyst upgrade.

(+) MNTA gets favorable judge ruling in Sanofi-Aventis case.

(+) ALXA getting payment related to Staccato license.

(+) NFLX app now on iPhone, iPod Touch.

(+) PAYX upgraded.


(-) GES extending evening declines that followed mixed guidance, earnings beat.

(-) APWR misses revenue expectations, backs guidance.

(-) SCON prices shares.

(-) FRED reports Q2 results that top the year-ago quarter, match expectations.

(-) PAR gains then falls amid Dell's (NASDAQ:DELL) increased $24.30 per share offer.

(-) GIGM swings to loss.

(-) TRMA files bankruptcy.


Stocks end lower as the major indexes give up early-session gains. Investors were initially charged, following favorable jobless claims data, but couldn't shake bearish concerns that have bedeviled the market over the past couple of weeks.

Stocks were buoyed by a decline in the number of people filing first-time claims for unemployment benefits by 31,000 to 473,000 in the latest week. It was the first decline in a month, according to Labor Department data. Economists surveyed by MarketWatch had expected initial claims to drop to 490,000 in the week ended Aug 21.

The less-volatile four-week average of initial claims rose 3,250 to 486,750. Altogether, 10.2 million people were collecting some type of unemployment benefits in the week ended Aug. 7, up from 9.9 million.

Also, mortgage rates continued to skid, falling to 4.36% this week, the lowest rate on a 30-year fixed loan in decades, according to Freddie Mac. The rate was 4.42% last week and has now declined for nine of the last 10 weeks.

Deal news dominated the tape, and topping the headlines, 3PAR (NYSE:PAR) accepted Dell's (DELL) increased offer to acquire the storage leader for $24.30 per share in cash, or approximately $1.6 billion, net of PAR's cash. The deal is expected to close before the end of the year. Based on current estimates, the transaction is expected to be accretive to DELL's non-GAAP earnings by its Fiscal Year 2012.

After the bell, H-P (NYSE:HPQ) countered with a revised $27 a share bid.

Cisco Systems (NASDAQ:CSCO) is buying privately held ExtendMedia for an undisclosed sum. ExtendMedia will become a core component of Cisco's next-generation video architecture, the company said. The transaction is expected to close in the first half of Cisco's fiscal 2011.

Hewlett-Packard (HPQ) will pay an undisclosed sum to buy Stratavia, a privately held database technology company based in Denver. H-P says the acquisition will strengthen the HP Software and Solutions portfolio, adding deployment, configuration and management solutions for enterprise databases, middleware and packaged applications.

Lastly, Novartis (NYSE:NVS) is moving ahead with a contentious buyout of Alcon (NYSE:ACL) after completing its acquisition of stock from Nestle, according to a Reuters report.