Mid-Day Update: Spanish Yields Top 7%, Markets Sink on Fears

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Markets were down across the board on Monday after Spanish 10-year debt yields soared past 7%, to what many view as unsustainable levels. EU finance ministers met, reportedly to discuss Spain's eligibility for leeway in meeting deficit targets in exchange for more savings measures. Italy's 10-year bond is over 6%. European markets and U.S. markets alike took a hit on the news.

European Central Bank chief Mario Draghi told a European Parliament committee that Euro-zone leaders must look towards deeper integration, as worries over slowing growth and sales in China pushed many mining and energy stocks lower, as well as certain luxury brands.

The decline was relatively even in the domestic markets, with two stocks falling for every one that increased Monday morning, and certainly unwelcome coming as it did after last week when constriction in manufacturing activity and weak jobs reports pushed the markets lower. There were some increases seen in commodities as the markets took a bearish turn.

The Dow Jones Industrial Average was down around 70 (-0.5%) at 12,705.

The S&P 500 was down half a dozen points (0.45%) at around 1,348.

The NASDAQ Composite was down (-0.4%) at 2,925.

In Europe, the FTSE 100 index was down 35 (-0.6%) to 5,625. The DAX was down 0.2% to 6,395 and the CAC 40 was at 3,158, down 0.35%. The DOW Global was at around 1800 (-0.75%).

Crude oil prices were at $85.46 a barrel. Natural gas was up 8.8 cents to $2.874 per 1 million BTU. Gold was up 8.5 to $1,587.40 an ounce, while silver was up 0.44 to $27.330 an ounce. Copper was up 0.02 to $3.43 a pound.

Among energy ETFs, the United States Oil Fund ( USO ) was up more than 2% with the United States Natural Gas ( UNG ) fund up 3.5%. Among precious-metal funds, the Market Vectors Gold Miners ETF (GMI) was down 1.1% and hit new year lows while SPDR Gold Shares ( GLD ) were up 0.3% to around $154.20. The iShares Silver Trust ( SLV ) was up 1.3% to $26.63.

Here's where the markets stand at mid-day:

NYSE Composite Index down 0.5% to 7,715.70

Dow Jones Industrial Index down 0.5% (-65.28) to 12,707.19

S&P 500 down 0.43% (-5.80) to 1,348.88

Nasdaq Composite Index down 0.4% (-12.44) to 2,924.88

GLOBAL SENTIMENT

Nikkei 225 down 1.37% (-123.87) to 8,896.88

Hang Seng Index down 1.88% (-372.55) to 19,428.09

Shanghai China Composite Index down 2.37% (-52.77) to 2,170.81

FTSE 100 is down 0.55% (-31.16) to 5,631.47

NYSE SECTOR INDICES

NYSE Energy Sector Index down 0.91% (-107.27) to 11,657.66

NYSE Financial Sector Index down 0.72% (-32.03) to 4,390.15

NYSE Healthcare Sector Index up 0.42% (+31.05) to 7,440.18

UPSIDE MOVERS

AGP (+38%, hit new year highs) WellPoint ( WLP ) acquired the company for $92.00 per share in cash, or approximately $4.9 billion.

MNTX (+10.8%) Reported that its consolidated order backlog as of June 30 was $149.6 million, an increase of 78.7% from December 31, 2011, and a 195% year-over-year increase.

MRGE (+4%) Upgraded by Craig-Hallum to Buy from Hold. The firm also established a price target of $4.50.

DOWNSIDE MOVERS

TROX (-13.9%) Australia's Iluka Resources' cut of its full-year sales guidance. According to Iluka, worsening global conditions were impacting demand for its titanium-dioxide minerals materials such as zircon and rutile. TROX also produces titanium-dioxide minerals.

BSDM (-13.9%) Sold a MicroThermX Microwave Ablation System to the University of Miami Hospital and Clinics (UMHC) to include the Sylvester Comprehensive Cancer Center and the University of Miami Hospital. The MicroThermX will be used in both centers.

RDN (-5.3%) Reported its data for primary mortgage insurance delinquencies for June 2012. The company's ending primary delinquent inventory was 98,450 loans, more than double the amount it wrote a year earlier. Primary new insurance written was $3.08 billion, more than the total it wrote in the whole second quarter last year.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: GLD , SLV , UNG , USO , WLP

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