Stocks Slammed by Eurozone Woes
The FTSE in London finished behind by 2.09% and the DAX in Germany tumbled 3.18% on Monday. The Hong Kong Hang Seng index settled down nearly 3% and the Nikkei in Japan fell 1.86%.
Meanwhile, safe-haven buying had pushed the yield on the benchmark 10-year Treasury to fresh lows Monday but the intensity of the declines lessened as the day wore on. At last check, the 10-year was up 7/32, diluting the yield to 1.437%, while the greenback was advancing 0.17%, according to the dollar index.
September crude oil futures shed $1.14 to settle at $91.83 a barrel. August gold futures fell by $5.40 to settle at $1,577.40 an ounce.
In corporate news, NRG Energy (NRG) said Sunday it reached a deal to buy GenOn Energy (GEN) for $1.7 billion in stock. The merger creates the largest competitive power generation company in the United States.Also, Chinese oil and gas exploration giant Cnooc (CEO) has agreed to buy Canadian energy company Nexen (NXY) for $15.1 billion in cash. This is the largest overseas buyout by a Chinese company. Through Friday, S&P Capital IQ estimated that 69% of the 118 S&P 500 companies that have reported earnings for the 2012 second quarter calendar year have beaten Wall Street's expectations, and 43% of them have shown double-digit profit growth. Collectively, the S&P 500 has reported a 5.9% EPS surprise, the firm said. S&P Capital IQ also said the blended growth rate for the S&P 500 is minus 0.81% for the second calendar quarter with only the industrials, consumer staples and information technology sectors expected to show growth.
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