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4:16 PM, Aug 10, 2011 --

  • NYSE down 320 (-4.4%) to 6,938.04
  • DJIA down 520.29 (-4.6%) to 10,719.33
  • S&P 500 down 51.83 (-4.4%) to 1,120.70
  • Nasdaq down 101 (-4.1%) to 2,420.54

GLOBAL SENTIMENT

  • Nikkei up 1%.
  • Hang Seng up 2%.
  • Shanghai Composite up 0.9%.
  • FTSE-100 up 0.5%.

UPSIDE MOVERS

(+) RL easily beats Q1 earnings estimates.

(+) COF is buying HSBC's domestic credit card business. HBC (+0.4%)

(+) CREE continues eventual sharp evening gain that followed Q4 beat, mixed guidance.

(+) BCON inks deal.

(+) ADLR jumps on study results.

(+) FOSL gives up early gain; upgraded today after guidance miss on Tuesday.

DOWNSIDE MOVERS

(-) BAC reportedly selling part of mortgage business: WSJ; CEO comments on outlook.

(-) M beats with Q2 results and sees FY EPS beating Street.

(-) WMT brings its VUDU movie streaming to iPad.

(-) DIS downgraded; gained in evening session after earnings beat.

(-) MOTR continues evening plunge that followed Q2 miss, worrisome revenue view.

(-) SATC misses Q2 estimates, guides for sales miss.

MARKET DIRECTION

Stocks retreated sharply for the second time in three sessions at mid-day, with concern over European banks spreading gloom to the U.S. equities markets and overshadowing a rise in job ads. In fact, it's the third straight day for a 400-point swing for the blue-chip DJIA. With the economic calendar relatively light, investors are eying corporate earnings, including Dow Jones Industrial component Walt Disney Co. (DIS), and the U.S. Federal Reserve's policy statement yesterday.

On the economic front, U.S. wholesaler inventories rose less-than-expected at 0.6% in June, which signals a cautionary stance from business.

In company news:

Shares of Walt Disney Co. (DIS) were down sharply after the company said late yesterday that Q3 EPS was $0.78, excluding charges, compared to expectations of $0.73 per share. Revenue was $10.67 billion compared with the mean analyst consensus for $10.45 billion on Thomson Reuters. Third quarter profits were buoyed by deferred revenue moved from the fourth quarter to the third quarter, noted Reuters. Excluding that item, results missed most analysts' expectations, the report said.

Abbott Laboratories (ABT) said that it has received U.S. Food and Drug Administration approval for its RX Herculink Elite Renal Stent System for the treatment of renal artery stenosis, or the narrowing of the main arteries supplying blood to the kidneys, in patients with uncontrolled hypertension.

Apple (AAPL) shares were down after Reuters reported a court in Germany temporarily halted Samsung Electronics from selling its Galaxy tablet in most of the European Union, handing Apple a victory in its intellectual property fight against the Korean firm. Last week, Samsung was forced to delay the Galaxy launch in Australia.

Shares of Goldman Sachs (GS) were sharply lower after The Wall Street Journal reported that U.S. securities regulators are investigating the securities firm under the U.S. Foreign Corrupt Practices Act related to its dealings with Libya's sovereign-wealth fund. Banking stocks are down across the board.

Wal-Mart (WMT) was down after Digital Music News reports that Wal-Mart Music Downloads Store located at MP3.walmart.com will close on August 28. All content in the store will be disabled and no longer available for download from the store. The service was reportedly unable to compete with Apple's (AAPL) iTunes online music store.

Shares of Johnson & Johnson (JNJ) were down after Bloomberg reported that the healthcare products giant has reached an agreement to settle a misdemeanor criminal charge related to marketing of its antipsychotic drug Risperdal.

Source: Wall Street Gives Back Gains