Stocks are lower at mid-session in a rough start to the week as
investors fret over renewed European debt concerns and rising
inflation in China. European markets were lower with the FTSE down
more than 1%, after ItalianÂ officials raised worries about the
country's debt situation. Spain also added to concerns.
With no US economic data due for release today, slow-moving debt
talks in Washington and the lingering effects of Friday's
disappointing jobs data are adding to the negative tone. Financial
shares are among the leading decliners.
In company news:
) announced Monday that it has sold its dermatology business,
Dermik, to Valeant Pharmaceuticals International (
), for US$425 million, as part of its strategy to further
concentrate on its growth platforms.
Shares of Ford (
) are lower this following a report from SeekingAlpha that car
sales in India grew at their slowest pace in two years. The report
also suggests car makers' outlook for global sales may be a bit too
optimistic as GDP growth in China slows.
Apple Inc. (
) has slipped after being ordered by a federal jury in Eastern
Texas to pay $8 million in damages to Personal Audio LLC, according
to Bloomberg. In 2009, Personal Audio had sued Apple and other
companies for infringement of two of its patents relating to an
Shares of Johnson & Johnson (JNJ) are down after reports
that the company has been sued for at least $70 million by a
company that claims it interfered in a contract over distribution
of an oral cancer test. Oral Cancer Prevention International Inc.,
is suing over a contract it signed in February 2010 with OraPharma
Inc., then a J&J unit.
Shares of Deutsche Bank (
) are down, while Reuters, citing analysts and investors, reports
that the German bank's plan to recommend investment banking head
Anshu Jain as co-chief executive could be a step for him to take
over the firm. The supervisory board overseeing the nomination of a
successor to Josef Ackermann suggested a dual CEO model comprised
of Germany Chief Juergen Fitschen and the 48-year-old Jain, the
Shares of Magic Software Enterprises (MGIC) are down after
Bloomberg reported the company sees a boost of sales by 29% this
year driven by demand from a migration to mobile and cloud
computing. The jump is seen allowing the company to achieve its
2009 goal of tripling sales by the end of next year, the report
Commodities are mixed. August gold contracts are up 0.35% to
$1,547 an ounce while August crude oil contacts are down 1.41% to
$94.84 a barrel.
In energy ETFs, the United States Oil Fund (USO) is down 1.61%
to $37.19 and the United States Natural Gas fund (UNG) is up 2.07%,
In precious metal ETFs, the SPDR Gold Trust (GLD) is up 0.3% at
$150.70. Market Vectors Gold Miners (GDX) is down 0.5% to $56.00.
iShares Silver Trust (SLV) is down 2.21% to $34.96.