(By Balachander) U.S. stocks closed on a sharply lower note amid concerns whether Europe's bailout plan for Spain's ailing banks will ease the country's debt crisis.
S&P 500 Index shed 1.26 percent to finish at 1,308.93. The Dow Jones Industrial Average dropped 1.14 percent to end at 12,411.23. The Nasdaq Composite Index tumbled 1.70 percent to close at 2,809.73.
With no U.S. economic data scheduled for the day and corporate news being light, the focus was on developments regarding over the euro zone that included a second round of elections in Greece this weekend.
The rate on Spanish 10-year government bonds jumped to a high yield of around 6.5 percent. On Saturday, euro zone finance ministers agreed to offer up to 100 billion euros ($125 billion) in loans for Spain's bank rescue fund.
Hot Stocks Of The Day: CNC, DMND, FRX, OCR, ES, ZAZA, INMD, NOIZ
In corporate news, Health insurer Centene Corp (NYSE: CNC) plunged 22.24 percent after the health insurer forecast a loss in the second quarter and reduced its earnings guidance blaming higher costs and claims in Texas and Kentucky.
Diamond Foods Inc. (NASDAQ:DMND) slumped 7.59 percent after the company disclosed that it will not meet its Monday's extended deadline to file some quarterly financial reports, which could result to a delisting from the Nasdaq.
Navistar International Corp. (NYSE:NAV) added 1.34 percent amid a report from Financial Times Deutschland that European carmaker Volkswagen may acquire a stake in the truck maker.
Omnicare Inc. (NYSE:OCR) retreated 8.86 after the healthcare services provider announced the resignation of John Figueroa as CEO, just 17 months after he took over the role.
Forest Laboratories Inc. (NYSE:FRX) retreated 3.52 percent after the company reduced its earnings forecast, citing evolving conditions in the Lexapro/escitalopram market. The company now expects 2013 non-GAAP EPS between $0.95 to $1.10 from prior forecast of $1.20 to $1.35.
ZaZa Energy Corp. (NASDAQ:ZAZA) soared 23.08 percent after the exploration company agreed to end its agreements with Hess Corp. (NYSE: HES) that will raise its acreage in Texas.
EnergySolutions Inc. (NYSE:ES) plunged 54.87 percent after the provider of nuclear services reduced its adjusted EBITDA guidance for the year, blaming continued slowdown in shipments to Clive in both the government and commercial businesses, among other reasons.
IntegraMed America Inc. (NASDAQ:INMD) soared 20.63 percent after the healthcare services company agreed to be bought by Sagard Capital Partners for $169.5 million. Sagard's offer of $14.05 per share represents a 24 percent premium to the stock's previous close.
Micronetics Inc. (NASDAQ:NOIZ) almost doubled its value after the maker of microwave and radio frequency products agreed to be acquired by Mercury Computer Systems Inc. (NASDAQ:MRCY) for $14.80 per share. The deal represents a 97.6 percent premium to Micronetics' Friday close of $7.49.
European markets ended on a mixed note. Germany's DAX added 0.17 percent to close at 6,141.05. France's CAC40 shed 0.29 percent to finish at 3,042.76. The U.K. FTSE 100 declined 0.05 percent to end at 5,432.37.
Among Asian markets, the Shanghai Composite Index rose 1.04 percent to end at 2,305.15. Hong Kong's Hang Seng jumped 2.44 percent to close at 18,953.63. Japan's Nikkei 225 gained 1.96 percent to close at 8,624.90. India's BSE Sensex finished at 16,668.01, down 0.30 percent.
Commodity & Currency Scan:
Crude oil futures tumbled 2.52 percent to $81.980 per barrel and natural gas futures slumped 3.61 percent to $2.216 per million metric British thermal units. Gold futures added 0.60 percent to $1,600.9 per ounce and silver futures gained 0.42 percent to $28.59 per ounce.
In the currency market, the euro dropped 0.26 percent against the U.S. dollar to $1.2485. The British pound edged 0.13 percent higher against the greenback to 1.5493, and the dollar dipped 0.01 percent against the Japanese yen to 79.4700.