Mid-Day Update: Stocks Fall as Investor Inflation Concern Flares; Crude Oil Falls

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Here's where markets stand at mid-day:

-NYSE down 132.32 (-1.63%) to 8,000.45

-DJIA down 147.24 (-1.22%) to 11,928.87


-S&P 500 down 17.60 (-1.33%) to 1,270.76

-Nasdaq down 32.90 (-1.24%) to 2,645.65

GLOBAL SENTIMENT

Nikkei up 0.3%.

Hang Seng down 0.7%.

Shanghai Composite down 0.9%.

FTSE-100 down 0.6%.

MID-DAY NYSE INDEX WATCH

NYSE Energy down 9.94% at 12965.86

NYSE Financial down 2.22% at 4,734.14

NYSE Health Care up 5.09% at 7,171.19

NYSE Arca Tech 100 up 0.36% at 1,119.07

UPSIDE MOVERS

(+) FIG (+2.8%) upgraded.

(+) NTAP (+1.9%) upgraded.

(+) ARUN (+1.8%) upgraded.

(+) TISA (+8.9%) successfully implements mailroom processing project.

(+) NYNY (+13.9%) gains as US gov't will consider off-reservation casinos on case-by-case basis.

(+) VELT (+2.5%) prices shares.

DOWNSIDE MOVERS

(-) GOOG (-0.9%) subject of WSJ report that says Nortel antitrust hurdle cleared.

(-) PLX (-0.3%) reports successful Brazil manufacturing audit.

(-) NOK (-4.6%) gives up Tuesday gain that followed patent resolution with Apple.

(-) MYGN (-1.2%) downgraded.

(-) SPWRA (-15.4%) continues recent drop that followed downgrade.

(-) CNTF (-0.2%) to launch new mobile social media solution.

(-) QGEN (-0.4%) offers to buy Ipsogen.

(-) SOL (-3.2%) downgraded.

(-) OI (-10.4%) warns for Q2.

MARKET DIRECTION

Stocks are lower at mid-day as the major indexes pare prior-session gains in the face of a weak New York regional manufacturing report and the biggest rise in three years of core consumer prices, although overall inflation is down. The index of builder confidence for new single-family homes also fell to its lowest reading since Sept. 2010, missing the Street.

Mortgage applications jumped last week, but demand was driven largely by refinancing to take advantage of falling interest rates, the Mortgage Bankers Association reported. The group's seasonally adjusted index of home mortgage and refinancing activity rose 13 points for the week ended June 10, the biggest gain since March.

Manufacturing activity deteriorated sharply in the New York region in June, according to the Empire State manufacturing survey released Wednesday by the New York Fed. The Empire State index fell below zero to -7.8 in June from 11.9 in May. This is the first time the index has been below zero since last November. The decline in June was unexpected.

Also out this morning, U.S. consumer prices rose a seasonally adjusted 0.2%. The consumer price index advanced despite the first decline in energy prices in 11 months. So-called core prices, which strip out volatile food and energy costs, increased 0.3%, the largest one-month gain since July 2008, and stronger than expectations. Consumer prices have risen 3.6% over the past year, the biggest 12 month increase since October 2008.

The index of builder confidence for new single-family homes fell 3 points in June to 13, according to the National Association of Home Builders/Wells Fargo Housing Market Index. Economists polled by MarketWatch had expected a 16 reading.

In company news:

Johnson & Johnson (JNJ) is down after announcing this morning that is cutting back on its heart stent business under pressure from falling prices and rising competition. The move will include the closing of two factories and up to 1,000 job cuts in its Cordis heart unit. It will take a charge of up to $600 million to cover costs.

Shares of Advanced Micro Devices ( AMD ) are down after Bloomberg reported the chip maker has approached at least three potential candidates to take over for ousted CEO Dirk Meyer. The overtures, so far, have been rebuffed, the report said. Among the executives AMD approached were Oracle (ORCL) CO-President Mark Hurd, EMC COO Pat Gelsigner and Carlyle Group Managing Director Greg Summe, the report said, citing people familiar with the matter.

U.S. antitrust regulators have approved a $900 million bid by Google Inc. (GOOG) for patents owned by Nortel Networks, The Wall Street Journal reports, citing people familiar with the matter. The Justice Department conducted an antitrust review and concluded that Google's ownership of the patents would not trigger significant competitive concerns. Other bids by Apple Inc. ( AAPL ) and Research in Motion (RIMM) are also under review by the Justice Department, the WSJ says. Microsoft Corp. (MSFT), AT&T (T) and Verizon Communications (VZ) have objected to the sale in legal documents filed on Monday.

Shares of Chevron ( CVX ) are down even as Reuters reports that the oil major managed to secure a shale gas exploration permit from the Bulgarian government for exploration work at a potentially large field in the northeastern part of that country. The permit is for five years, the report said. The field is initially estimated with potential reserves of between 300 billion and 1 trillion cubic metres of shale gas.

Empire Resorts ( NYNY ) is up after the Wall Street Journal reports that the Obama administration removed a hurdle for Indian tribes wanting to build casinos far from their ancestral land, setting the stage for new development. It said the Interior Department rescinded a Bush-era directive that said tribes could develop casinos off their reservations only if they were within commuting distance. The Bureau will return to a policy that considers off-reservation casinos on a case-by-case basis, the WSJ reports. The policy shift is poised to revive numerous plans for off-reservation casino projects, from the Columbus River George in Oregon to the Catskills, it said.

Shares of JPMorgan Chase (JPM) are down as TheStreet.com reports that the bank will pay a $2 million fine for "high-pressure sales tactics" related to a shuttered credit-protection product. The Office of the Comptroller of the Currency levied the fine in connection to credit protection products the bank sold through its home lending, auto and card services divisions between January 2008 and May 2009.

Commodities are mixed. August gold contracts are up 0.16%, to $1,527 an ounce while July crude oil contacts are down 0.93% to $98.45 a barrel.

In energy ETFs, the United States Oil Fund (USO) is down 0.66% to $38.84 and the United States Natural Gas fund (UNG) is down 0.64%, to $11.56.

In precious metal ETFs, the SPDR Gold Trust ( GLD ) is down 0.25% at $148.56. Market Vectors Gold Miners (GDX) is down 1.01% to $52.85. iShares Silver Trust (SLV) is down 0.37% to $34.62.



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 , AMD , CVX , GLD , NYNY

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As of 12/22/2014, 04:15 PM


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