The Dow Jones Industrial Average dropped 1.1 percent on Monday. The 138.12-point loss here in the United States was likely due to the low expectations that Europe would make any progress on their disastrous debt crisis.
Stocks also fell throughout Europe. Germany’s DAX fell 2.1 percent, Japan’s Nikkei Stock Exchange reported a 0.7 percent fall, and France’s CAC-40, retreated 2.2 percent.
The decrease is the 22nd day here in the U.S. during this quarter to see a triple-digit move.
Spain requested a massive bailout for its failing banks, without bothering to go into details about how it intended to execute the move, or how much money they would actually have to have to do it. Meanwhile, German Chancellor Angela Merkel continued to balk at the idea of introducing a common euro-zone bond. The lack of progress made by European leaders left for a poor day for the markets.
Phil Orlando, the chief equity strategist for Federated Investors in New York, a company managing a whopping $370 billion, said, “It was ugly. The market is calling for a policy response, and today’s sell off says that they don’t think anything is going to happen.”
“Expectations are near zero,” remarked Mr. Orlando, “Based upon the way the market is responding.” He claimed to be hopeful that European leaders would offer at least some sign of a possible collaboration, but conceded that investors were hesitant of the affair. Mr. Orlando watched for “some body language” from the Europeans, hoping that an agreement would emerge, pulling the fiscal and banking policy closer together and guaranteeing bank deposits throughout the currency bloc.
Crude oil has dropped 20 percent this year. Oil prices went down 0.7 percent, or 55 cents, making it $79.21 a barrel according to the New York Mercantile Exchange. However, gold was up by 1.4 percent, and Treasurys bumped up to 1.609 percent.
Health-care stocks on the Standard and Poor’s 500-stock index lost 1.2 percent during the wait for the Supreme Court’s decision on President Obama’s healthcare bill. The drop was worth noting, but the health-care market still remains to be one of the steadiest growers during the month of June.
Teva Pharmaceutical Industries rose $4.10, or 2.5 percent, reaching $158.90 when the United States District Court approved patents for Copaxone, a drug intended to treat multiple sclerosis. Momenta Pharmaceutical dropped 22 percent to $13.20 when the Court found that that company’s generic equivalent of Copaxone was an infringement of the patent.
It is believed that Dell is the unnamed “strategic bidder” responsible for the 5.6 percent increase in Quest Software’s stock, after they announced a $2.32 billion takeover. Ironically, Dell’s stock decreased by 25 cents, going for $11.95
Constellation Brands’ stock rose the highest at $21.86. The 13 percent increase likely due to reports that Anheuser-Busch InBev was nearing a deal to purchase Corona brewer Grupo Modelo. Anheuser gained 2 percent to $56.75
Kirby, a company that controls barges used for transporting bulk liquids over waterways, also fell. The company reported softness of its land-based diesel-engine-services business after its stocks fell by 11 percent, to $45.45.
This article was written by Jennifer Nobles. Jen is a promoter of good business and solid financial advice. During her time studying finance and through her career, she has developed an expertise in money market funds, Canadian Stock Market, bankers’ acceptances, flow through shares, gold production, and mining stocks.
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