Mid-Day Update: Stocks Broadly Lower as Sovereign Debt Concerns Flood Street; Gold Gains

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Here's where markets stand at mid-day:

-NYSE down 139.15 (-1.69%) to 8,087.89

-DJIA down 174.49 (-1.4%) to 12,305.24

-S&P 500 down 19.45 (-1.48%) to 1,296.69

-Nasdaq down 45.14 (-1.62%) to 2,744.77

GLOBAL SENTIMENT

Nikkei closed.

Hang Seng down 0.3%.

Shanghai Composite down 0.1%.

FTSE-100 down 1.1%.

MID-DAY NYSE INDEX WATCH

NYSE Energy down 6.5% at 13,448.86

NYSE Financial down 2.55% at 4,645.51

NYSE Health Care up 5.29% at 7,185.07

NYSE Arca Tech 100 down 1.48% at 1,142.28

UPSIDE MOVERS

(+) VLNC (+5.8%) raises outlook.

(+) GPL (+2.3%) buys new silver-gold project.

DOWNSIDE MOVERS

(-) HAL (-0.6%) beats with Q2 results.

(-) EOG (-0.6%) upgraded.

(-) GCI (-2.7%) beats with earnings.

(-) NWS (-4.8%), NWSA (-4.4%) continues drop as hacking scandal unfolds.

(-) NFLX (-3.7%) downgraded.

(-) PETS (-0.6%) misses with earnings.

(-) WBMD (-30.5%) warns on Q2, FY earnings.

(-) CLX (-2.3%) downgraded.

(-) DLTR (-1.9%) downgraded.

(-) KOG (-5.9%) selling shares.

(-) HAS (-3.2%) misses with EPS, revenue beats.

(-) IRE (-12.9%) continues drop in wake of stress test results; did pass those tests

MARKET DIRECTION

Stocks are broadly lower in mid-day trading as investors focus on sovereign debt concerns and growing worries that U.S. legislators will not reach a deal on the country's debt ahead of a deadline looming two weeks away. With no economic reports due out today, investors also focused on corporate earnings news.

Asian markets closed with losses; Japan is closed for a holiday. European markets are mostly easing Monday as sovereign-debt yields continued to rise and as the results of Friday's banking stress tests, though not as bad as expected, failed to inspire much confidence among investors. Also, weekend meetings failed to end in agreement over the U.S. debt ceiling deadline.

In company news:

Shares of Bank of America ( BAC ) are down after Bloomberg reported the bank may need to build its capital by $50 billion and go back on its pledge to raise the bank's dividend. The report cites mortgage losses draining capital. Costs associated with bad home loans may top $20 billion in the second quarter, the report said. That could move the bank farther from the capital ratios required under new international standards.

Shares of Johnson & Johnson ( JNJ ) are down ahead of the health care products maker's second quarter results due before the bell tomorrow. Wall Street is expecting the company to report earnings of $1.23 per share on $16.22 billion in revenue.

Allstate ( ALL ) is down after it says Joseph Lacher, president, Allstate Protection, is leaving the company, effective immediately. Separately, Sterne Agee downgraded the shares to "neutral" from "buy," citing the uncertainty surrounded the shakeup.

Shares of Apple ( AAPL ) are higher after the U.S. International Trade Commission said Friday that HTC Corp. infringed on two of its patens. A report in the Silicon Valley Business Journal indicates that that HTC plans to appeal the ruling.

Shares of Pharmaceutical Product Development ( PPDI ) are up 15.87% to $32.28 off the open, after the Wall Street Journal reported that the company is exploring a potential sale.

Anadarko Petroleum Corporation (APC) is down after the company today announced the finalization of a unitization agreement with Exxon Mobil Corporation (XOM) and co-owners to develop the Lucius field. The unitization includes portions of Keathley Canyon blocks 874, 875, 918 and 919 in the deepwater Gulf of Mexico. Anadarko will operate the unit with a 35-percent working interest.

Valence Technology (VLNC) is up after the company today raised its fiscal first-quarter revenue guidance. The company said it expects to post fiscal Q1 revenue of $13.5 million to $14 million, up from its previous prediction of $8.5 million to $10.5 million.

Shares of Nabi Biopharmaceuticals (NABI) have shed more than two-thirds of their market value after the company said NicVAX did not meet its primary endpoint in the company's first of two confirmatory Phase III clinical trials. A preliminary assessment of the trial data showed that subjects treated with NicVAX quit smoking at a similar rate of approximately 11% compared to subjects who received placebo. As in previous trials, NicVAX was well-tolerated with a clinically acceptable safety and tolerability profile.

Allstate ( ALL ) is down after it says Joseph Lacher, president, Allstate Protection, is leaving the company, effective immediately. Separately, Sterne Agee downgraded the shares to "neutral" from "buy," citing the uncertainty surrounded the shakeup.

In the latest earnings news:

--Hasbro (HAS) reports Q2 adjusted EPS of $0.33, missing the Thomson Reuters mean analyst estimate of $0.39. Revenue rose 23% to $908.5 million. The Street looked for $854.8 million.

--Gannett (GCI) says Q2 EPS, less items, was $0.58, a penny above the Thomson Reuters mean. Total sales were $1.334939 billion, above estimates for $1.32999 billion.

--Charles Schwab (SCHW) reports Q2 EPS of $0.20, up from $0.17 per share last year. Revenue was $1.19 bln, up from $1.08 bln in the year ago quarter. The analyst consensus on Thomson Reuters was for earnings of $0.19 per share on revenue of $1.18 bln.

Commodities are mixed. August gold contracts are up 0.94% to $1,605 an ounce while August crude oil contacts are down 2.16% to $95.14 a barrel.

In energy ETFs, the United States Oil Fund (USO) is down 2.41% to $37.21 and the United States Natural Gas fund (UNG) is up 0.52%, to $11.50.

In precious metal ETFs, the SPDR Gold Trust (GLD) is up 0.68% at $156.25. Market Vectors Gold Miners (GDX) is up 1.66% to $60.71. iShares Silver Trust (SLV) is up 2.9% to $39.35.



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: AAPL , ALL , BAC , JNJ , PPDI

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