U.S. markets took back their gains from the previous session, retreating from five-year highs, as Europe worries spooked investors again.
Spain was taking centre stage as the country's 10-year bond yields surged to over 5% as Prime Minister Mariano Rajoy tried to contain a corruption scandal and calls for resignation. He denied over the weekend allegations that he, together with members of his political party, had accepted secret payments.
Traders also began to consider Italy's general election later this month, with concerns the next government would mess with the economic reforms set by Mario Monti. Silvio Berlusconi is increasing in popularity in the country, and is considered a contender in the upcoming elections.
In the U.S., the Commerce Department reported factory orders in December rose 1.8%, compared to consensus estimates of 2.4% growth and a downward revised 0.3% decline in November.
As of just after 12pm ET, the Dow was down 136 points to 13,874, the Nasdaq dropped 42 points to 3,137 and the S&P 500 fell 16 points to 1,497.
On Friday, the Dow finished above the 14,000 level for the first time since 2007, on the back of jobs data. The primary driver of the gains was said not to be the 157,000 jobs created in January - which came in under expectations - but the upward revisions in the prior two months, as well as other economic data that showed signs of recovery overseas and at home.
On the corporate front, earnings season in the U.S. began to wind down, with around half of the firms in the S&P 500 having reported so far. Another 90 S&P 500 firms will report this week, according to Deutsche Bank, accounting for 12% of the index’s market capitalization.
Monday, Humana (NYSE:HUM) reported a fourth quarter profit that topped Street views, but revenue of $9.56 billion came in below projections for sales of $9.75 billion. Its shares rose almost 5%.
Gannett Co. (NYSE:GCI) Monday said its fourth quarter profit fell 12%, but adjusted earnings topped analyst views on a “strong performance” in its broadcasting segment and as digital revenue across the company rose nearly 30 per cent. Its shares slid more than 5.4% on Monday.
After the bell, earnings are due in from Anadarko Petroleum (NYSE:APC) and fast-food restaurant operator Yum Brands (NYSE:YUM).
Highlights later this week include quarterly report cards from Walt Disney (NYSE:DIS) and Visa (NYSE:V), among others.
In other corporate news, Dell (NASDAQ:DELL) shares fell more than 3% after climbing on Friday following a Reuters report that the company was close to signing a potential buyout deal, with an announcement expected to come as early as today. The Wall Street Journal reported that investors would be offered a price of around $13 to $14 a share.
Elsewhere, the New York Post reported that Herbalife (NYSE:HLF) is now under investigation by the Federal Trade Commission, after the company was accused of running a pyramid scheme by Pershing Square hedge fund manager Bill Ackman. The report said the FTC has received 192 complaints against the firm in the last seven years. Shares of the company dropped almost 5% this morning.
Tiffany & Co. (NYSE:TIF) shares slid after the jewelry company was downgraded to a neutral rating from buy by Monness Crespi Hardt on Monday.
On a similar note, Wal-Mart (NYSE:WMT) shed 1.8% after J.P. Morgan Chase & Co. downgraded the retailer to neutral from overweight, and Merck (NYSE:MRK) fell after it was taken down to a market perform rating from outperform by Leerink Swann.
On the M&A front, Oracle Corp. (NASDAQ:ORCL) said it will buy Acme Packet Inc. (NASDAQ:APKT) in a deal with an enterprise value of $1.7 billion.
*Commodities *
Gold futures rose $5.00 to $1,676 an ounce on its safe haven allure, while March crude fell $1.38 to $96.41 a barrel.
*Europe*
European markets finished sharply lower today with shares in France leading the region. The CAC 40 was down 3.01% while Germany's DAX was off 2.49% and Britain's FTSE 100 retreated by 1.58%. Reported by Proactive Investors 14 hours ago.
Spain was taking centre stage as the country's 10-year bond yields surged to over 5% as Prime Minister Mariano Rajoy tried to contain a corruption scandal and calls for resignation. He denied over the weekend allegations that he, together with members of his political party, had accepted secret payments.
Traders also began to consider Italy's general election later this month, with concerns the next government would mess with the economic reforms set by Mario Monti. Silvio Berlusconi is increasing in popularity in the country, and is considered a contender in the upcoming elections.
In the U.S., the Commerce Department reported factory orders in December rose 1.8%, compared to consensus estimates of 2.4% growth and a downward revised 0.3% decline in November.
As of just after 12pm ET, the Dow was down 136 points to 13,874, the Nasdaq dropped 42 points to 3,137 and the S&P 500 fell 16 points to 1,497.
On Friday, the Dow finished above the 14,000 level for the first time since 2007, on the back of jobs data. The primary driver of the gains was said not to be the 157,000 jobs created in January - which came in under expectations - but the upward revisions in the prior two months, as well as other economic data that showed signs of recovery overseas and at home.
On the corporate front, earnings season in the U.S. began to wind down, with around half of the firms in the S&P 500 having reported so far. Another 90 S&P 500 firms will report this week, according to Deutsche Bank, accounting for 12% of the index’s market capitalization.
Monday, Humana (NYSE:HUM) reported a fourth quarter profit that topped Street views, but revenue of $9.56 billion came in below projections for sales of $9.75 billion. Its shares rose almost 5%.
Gannett Co. (NYSE:GCI) Monday said its fourth quarter profit fell 12%, but adjusted earnings topped analyst views on a “strong performance” in its broadcasting segment and as digital revenue across the company rose nearly 30 per cent. Its shares slid more than 5.4% on Monday.
After the bell, earnings are due in from Anadarko Petroleum (NYSE:APC) and fast-food restaurant operator Yum Brands (NYSE:YUM).
Highlights later this week include quarterly report cards from Walt Disney (NYSE:DIS) and Visa (NYSE:V), among others.
In other corporate news, Dell (NASDAQ:DELL) shares fell more than 3% after climbing on Friday following a Reuters report that the company was close to signing a potential buyout deal, with an announcement expected to come as early as today. The Wall Street Journal reported that investors would be offered a price of around $13 to $14 a share.
Elsewhere, the New York Post reported that Herbalife (NYSE:HLF) is now under investigation by the Federal Trade Commission, after the company was accused of running a pyramid scheme by Pershing Square hedge fund manager Bill Ackman. The report said the FTC has received 192 complaints against the firm in the last seven years. Shares of the company dropped almost 5% this morning.
Tiffany & Co. (NYSE:TIF) shares slid after the jewelry company was downgraded to a neutral rating from buy by Monness Crespi Hardt on Monday.
On a similar note, Wal-Mart (NYSE:WMT) shed 1.8% after J.P. Morgan Chase & Co. downgraded the retailer to neutral from overweight, and Merck (NYSE:MRK) fell after it was taken down to a market perform rating from outperform by Leerink Swann.
On the M&A front, Oracle Corp. (NASDAQ:ORCL) said it will buy Acme Packet Inc. (NASDAQ:APKT) in a deal with an enterprise value of $1.7 billion.
*Commodities *
Gold futures rose $5.00 to $1,676 an ounce on its safe haven allure, while March crude fell $1.38 to $96.41 a barrel.
*Europe*
European markets finished sharply lower today with shares in France leading the region. The CAC 40 was down 3.01% while Germany's DAX was off 2.49% and Britain's FTSE 100 retreated by 1.58%. Reported by Proactive Investors 14 hours ago.