- DJIA down 131.46 (-1.1%) to 11,823.48
- S&P 500 down 13.91 (-1.1%) to 1,211.82
- Nasdaq down 39.96 (-1.55%) to 2,539.31
GLOBAL SENTIMENT
- Nikkei down 0.39%
- Hang Seng down 0.5%
- FTSE-100 down 2.25%
- DAX-30 down 1.72%
U.S. stocks plunged Wednesday as the eurozone debt crisis continued to weigh on investor sentiment. Adding to the downside, the markets were still reacting to Tuesday's statement by the Fed that it will hold rates unchanged. There was some hope that the Fed may adjust policy to spark the economic recovery in light of the deteriorating situation in Europe.
The sell-off came as investors anticipated further interest rate cuts from the European Central Bank, which lowered its benchmark rate to 1% earlier this month. The euro was under pressure, and tumbled to its lowest point in 11 months, below the key psychological level of $1.30.
Bond purchases in Italy, once again, hit worrisome levels. Italy sold 3 billion euros of five year bonds at yields of 6.47%. Germany had sold 4.18 billion of two-year treasury notes at a yield of $0.29%.
In company news:
Royale Energy (ROYL) fell after filing a $100 million mixed securities shelf registration with the SEC, StreetInsider.com reports.
TranS1 (TSON) jumped after Palmetto GBA, a Medicare Administrative Contractor, removed its Non-Coverage policy for AxiaLIF effective January 1, 2012.
Transocean (RIG) tumbled to a new 52-week low after Brazilian media report that the federal prosecutor in Campos, northern Rio de Janeiro, wants the Federal Court to grant an injunction suspending all activities of the company.
Broadcom (BRCM) shares were firm after it said it increased its Q4 revenue outlook to the high end of the prior range to about $1.8 bln. The Street view is $1.76 bln, according to Thomson Reuters.
Shares of Goldman Sachs (GS) were down while Bloomberg reports that the bank has managed only a single offering in China in three years. At the same time fees from offerings grew to $2.1 billion last year from $404 million five years ago, the report said.
First Solar (FSLR) dropped sharply after it forecast 2011 sales in the range of $2.8 to $2.9 bln, down from prior guidance of $3 to $3.3 bln and below the analyst consensus of $3.19 bln on Thomson Reuters. EPS is seen in the range of $5.75 to $6.00, vs. expectations of $6.88 per share.
J.W. Marriott Jr. will step down from the post of the chief executive of Marriott International (MAR) next March. The stock declined as a result. Marriott, son of the founder of the global hotel chain, will be replaced by Arne Sorenson as CEO but will stay on as executive chairman. Sorenson, a company veteran who currently serves as president and chief operating officer, will be the first person outside the Marriott family to run the company.
ADRs of China Petroleum & Chemical (SNP) - also called Sinopec - were lower while the company moves ahead with acquisitions of natural gas assets despite a negative economic outlook and weak sector profits, the Associated Press reports.
Shares of IBM (IBM) trended lower as media reports indicate that European Union regulators have accepted concessions offered by Big Blue to end the antitrust probe and avoid a possible fine. IBM had proposed concessions in September.
Commodities took a big hit in today's market sell-off. Gold for February delivery dropped $73.80 an ounce, or 4.4%, to touch $1,589.90 an ounce on the Comex division of the New York Mercantile Exchange.
Crude-oil futures for January delivery dropped $5.19, or 5.2%, to close at $94.95 a barrel on the New York Mercantile Exchange.
UPSIDE MOVERS
(+) BRCM, Boosts Q4 revenue view
(+) AVP, Searching for new CEO
DOWNSIDE MOVERS
(-) FSLR, Slashes 2011 outlook
(-) INTC, Selects INSIDE Secure to provide NFC technology and products
(-) LNG, To Sell 33 Mln Shares in Offering
(-) KSS, Downgraded to Hold from Buy at Deutsche Bank
(-) CAT, To sell part of Bucyrus distribution business
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