Stocks are off session lows reached when the Dow Jones
Industrial Average dropped over 100 points off the open, to now
trade mixed. The Nasdaq moved into positive territory while the Dow
and S&P 500 remained in the red on continued worries about the
economy on both sides of the Atlantic and its effect across the
Economists at J.P. Morgan on Friday further cut estimates for
U.S. economic growth and warned that recession risks are "clearly
elevated." The bank cuts its Q4 view to 1% from a previous
projection of 2.5%. They also lowered their Q1 2012 growth forecast
to 0.5% from 1.5%.
Deutsche Bank on Friday downgraded its forecast for China,
saying the slowdown, and even potential for recession, in Europe
and the United States, now outweighed domestic credit tightening as
the biggest risk to China's economy.
In company news:
Shares of Hewlett-Packard (
) are plunging after a day of inflection for the technology giant
that saw a flurry of news that shows, above all, the company is
looking to move to a model that looks more like IBM (
) than that of a consumer technology company. HP is looking at a
possible exit from the personal computer business, which was the
subject of a protracted battle under former CEO Carly Fiorina
during its acquisition of Compaq in the early part of last decade.
Needham analyst Richard Kugele noted that, with the move," HP may
have eroded what remained of Wall Street's confidence in the
company and its strategy," Forbes quoted the analyst as saying.
ADRs of Novo Nordisk (
) are higher as Bloomberg reports the health care company was sued
by Sandoz, a unit of Swiss firm Novartis (
). The Novartis unit is asking the court in Detroit to find that
its proposed generic version of a Novo Nordisk diabetes drug does
not infringe on patents. Sandoz has asked the U.S. Food and Drug
Administration for permission to market a generic version of the
diabetes drug Prandin, the report said.
) has surged after a report by Bloomberg says that Sprint Nextel
(S) is talking with cable companies including Cablevision (CVC) and
Comcast (CMCSA) about a possible investment that may lead to an
acquisition of the company.
Shares of DexCom (DXCM) are higher as the company is seen
engaging in takeover talks starting next year if the company can
achieve a profit, Bloomberg reports. The company is hoping a newly
introduced version of its Seven Plus sensor, which it plans to
introduce next year, will help to boost its stock price to $20 or
Bank of America (BAC) shares are down as Reuters reports the
bank will cut 3,500 jobs by the end of next month and join an
expanding list of banks repositioning themselves amid the slow
economic recovery.The job cuts, which were reportedly disclosed in
a memo, will be supplemented by cost-cutting measures, the report
Commodities are up as December gold contracts are up 1.6% to
$1,851 an ounce while September crude oil contacts are up 0.68% to
$82.94 a barrel.
In energy ETFs, the United States Oil Fund (USO) is up 1.73% to
$32.27 and the United States Natural Gas fund (UNG) is up 0.71%, to
In precious metal ETFs, the SPDR Gold Trust (GLD) is up 1.31% to
$180.04. Market Vectors Gold Miners (GDX) is up 2.73% to $61.37.
iShares Silver Trust (SLV) is up 3.4% to $41.01.