As the European summit deal to strengthen budget discipline in the euro zone failed to restore financial market confidence today, the U.S. market slipped to a negative zone during the mid-day session Monday.
The Dow Jones industrial average fell 1.47 percent or 178.61 points to trade at 12,005.65. The Nasdaq Stock Market Inc. composite index lost 1.63 percent or 43.02 points to trade at 2,603.83. The Standard & Poor's 500 index was down 1.68 percent or 21.14 points to trade at 1,234.05.
Hot Stocks of the Day: ADTN, DMND, ENDP, ING, LNG
Adtran Inc. (Nasdaq: ADTN) agreed to buy the fixed line broadband access business of Nokia Siemens Network. Shares of ADTN fell 6.89 percent, or $2.22, to trade at $30.03.
Shares of Diamond Foods, Inc. (Nasdaq: DMND) slumped 22.66 percent, or $9.19, to trade at $31.27 amidst reports that some walnut growers had raised concern over the snack maker's explanation of mysterious payments to them, further complicating an accounting issue that has postponed Diamond Food's plans to acquire Pringles from Procter & Gamble Co.
Endo Pharmaceuticals Holdings Inc. (Nasdaq: ENDP) shares rose 5.85 percent, or $1.99, to trade at $36 as the U.S. Food and Drug Administration approved a new version of the company's painkiller.
ING Groep NV (NYSE: ING) said it would swap 5.8 billion euros, or $7.76 billion in subordinated debt for senior loans and cash. Shares were down 8.94 percent, or $0.70, to trade at $7.13.
Cheniere Energy, Inc. (AMEX: LNG) announced its subsidiary had reached an agreement to sell natural gas to Gail India Ltd., an Indian gas transmission and marketing firm. Shares of LNG added 5.40 percent, or $0.48, to trade at $10.
Currencies and Commodities:
In the world of currency, the US dollar lost 0.26 percent against the euro, and 0.11 against the British pound. The dollar gained 0.004 percent against the Japanese yen.
Commodities traded in a negative note today with oil losing 1.39 percent to trade at $98.03 per barrel. Gold prices were up 1.85 percent to trade at $1,744.50 per ounce. The Dow Jones-UBS Commodity index fell 1.89 percent, and the Reuters-Jeffries CRB index lost 1.56 percent.
The global markets traded in negative today as Europe remained concerned that the fiscal pact will not deter it from reconsidering the credit ratings of European Union nations. Germany's DAX was down by 3.19 percent, or 190.69 points to 5,797.70. France's CAC40 was down 2.61 percent or 82.76 points to 3,089.59. Great Britain's FTSE 100 fell 1.54 percent or 85.21 points to 5,444.36.
In the Asian market, China's Shanghai Composite closed lower by 1.02 percent, or 23.73 points to 2,291.54. Hong Kong's Hang Seng fell 0.06 percent or 10.57 points to 18,575.66. India's BSE 30 Sensex slumped 2.12 percent, or 343.11 points to close at 15,870.35. However, Japan's Nikkei 225 was up 1.37 percent or 117.36 points to close trading at 8,653.82
The basic materials sector emerged as the market's worst performing sector by the afternoon session after losing 2.81 percent during the session. Among major movers in the sector, Steel Index ETF Fund (NYSEArca: SLX) was down 4.15 percent, or $2.11, to trade at $48.71. The Ultra Basic Materials ETF (NYSEArca: UYM) lost 5.63 percent, or $1.89, to trade at $31.71. Among major stocks, shares of Aegean Marine Petroleum Network Inc (NYSE: ANW) fell 2.44 percent or $0.11 to trade at $4.40. Shares of Tredegar Corp. (NYSE: TG) were down 2.58 percent or $0.56 to trade at $21.15. Shares of LB Foster Co. (Nasdaq: FSTR) were down 3.89 percent or $1.10 to trade at $27.20.