Stocks Sink On Eurozone Debt Worries

Includes: DIA, QQQ, SPY
by: Midnight Trader
  • Dow Jones Industrial Index down 83.17 (-0.65%) to 12,653.12
  • S&P 500 down down 10.99 (-0.81%) to 1,341.47
  • Nasdaq Composite Index down 29.44 (-1.00%) to 2,902.33


  • Nikkei 225 down 0.44% (-39.15) to 8,857.73
  • Hang Seng Index down 0.16% (-31.73) to 19,396.36
  • Shanghai China Composite Index down 0.29% (-6.38) to 2,164.44
  • FTSE 100 up 0.85% (+47.80) to 5,675.13

U.S. stocks ended lower Tuesday as concerns over the debt load in Europe once again took center stage. Stocks opened today's session in the green on optimism over the agreement among eurozone finance ministers to fast-track aid for Spanish Banks. Later, stocks turned negative as Italy moved to the forefront, with its 10-year bond yields spiking to 6.09%.

Further pressure came from earlier, mixed economic reports. The National Federation of Independent Business (NFIB) Small Business Optimism Index dropped three points today, completely reversing all year-to-date improvement and coming in well under both prior and predicted levels. The prior period posted 94.4 while analysts were expecting an index value of 92.0 (range 91.5 to 93.5). Just one out of the 10 components measured improved. It is the lowest reading since October.

Redbook reported a same-store year-on-year pace that was unchanged in the June 7 week, at 2.2%. The number is soft but the group does report rising demand for seasonal goods thanks to the spike in hot weather. ICSC Goldman Store Sales echo the last sentiment but show much stronger numbers. The report, which is issued from the International Council of Shopping Centers and is related to the general merchandise portion of retail sales, shows a week-over-week change of 2.0%, up from 0.2% the prior week. Store sales also increased year-over-year, going from 1.4% to 3.0%.

In company news, Research In Motion (RIMM) shares slipped on the day of the company's annual meeting. At the meeting, RIM's new chairperson, Barbara Stymiest, stated that the company's strategic review still involves options such as BlackBerry licensing and "strategic business model alternatives" and reiterated that the company's performance has not met expectations this year. She also said that RIM has engaged a search firm to help with its search for new board members with relevant tech experience.

Dollar-dominated commodities crumbled under pressure as a climbing greenback made these commodities more expensive for holders of international currencies. Crude for August delivery declined 2.4%, to $83.91 a barrel on the New York Mercantile Exchange. Natural gas tumbled 5.1%, to settle at $2.74 per million British thermal units. Gold for August delivery ended down 0.6% at $1,579.80 an ounce on the Comex division of the New York Mercantile Exchange.


(+) SEED, Provided Update on its R&D Programs

(+) BONE, Announced Three-Year Group Purchasing Agreement with The Premier

(+) GEVA, Prices Public Offering


(-) QTM, Warned Fiscal First Quarter Results Will Miss Street Estimates

(-) AMD, FBR Capital Lowers Price Target for Company

(-) JCP, Job Cuts at Headquarters

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