This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stocks Take Breather After Recent Surge

Stocks in this article: ^DJI ^GSPC ^IXIC AAPL HBC SHAW T PGNX SLXP

The other route that's being talked about is another long-term refinancing operation, a program that worked well at the end of last year and the beginning of this year.

"If they don't do this I think there will be massive disillusionment -- the question is therefore whether the Germans are prepared to go along with something like that," said Morgan.

September crude oil futures settled down 35 cents at $89.78 a barrel. December gold futures settled up $1.30 at $1,624.00 an ounce.

The benchmark 10-year Treasury was up 15/32, lowering the yield to 1.500%. The greenback was trading up 0.24%, according to the dollar index.

In U.S. economic news, the Chicago Fed Midwest Manufacturing Index increased 1.1% in June, to a seasonally adjusted level of 94.1. Revised data show the index was down 1.4% in May.

Also, the July Texas manufacturing index from the Dallas Fed came in at negative 13.2, declining from 5.8 the prior month.

On Friday, the Labor Department is slated to release the July jobs report, which is expected to show a tepid gain of 100,000 in nonfarm payrolls after a rise of just 80,000 new workers in June, according to a survey of economists by Thomson Reuters. The unemployment rate is expected to stay at 8.2%.

On the corporate front, Shaw Group (SHAW) agreed to be acquired by Chicago Bridge & Iron (CBI) in a cash-and-stock transaction valued at about $3 billion. Shaw shares rose 55% while CBI's stock fell more than 14%.

HSBC (HBC) has put aside about $2 billion to cover the cost of compliance problems related to the selling of payment protection insurance to British customers and to cover "certain law enforcement and regulatory matters" in the United States related to money-laundering controls.

The bank, Europe's biggest, reported Monday that underlying profit for the first six months of 2012 fell 3% to $10.6 billion. Shares rose 1.4%.

Also, jury selection in federal court began Monday in the patent fight between Apple (AAPL) and Samsung.

Apple alleges that Samsung's smartphones and computer tablets are illegal knockoffs of its iPhone and iPad. Apple is seeking $2.5 billion in damages.

Meanwhile, Apple and Twitter are currently not in discussions on Apple taking a stake in the social networking site, Reuters reported, citing sources familiar with the matter. Apple gained 1.7%.

Progenics Pharmaceuticals ( PGNX) and Salix Pharmaceuticals (SLXP) shares were plunging after they said the U.S. Food and Drug Administration asked for more data following the review of their constipation treatment.

Progenics's stock sank 50% while Salix shares tumbled 13%.

Of the 280 companies in the S&P 500 that have reported earnings to date for the second quarter, 67% have reported earnings above analyst expectations, according to a Thomson Reuters report. This is higher than the long-term average of 62% but lower than the average over the past four quarters of 68%, the report said.

A Deutsche Bank report said that year-over-year sales growth in the S&P 500 in the second quarter of 2.3% has lagged earnings per share growth of nearly 7%.

"Thus, some observers think cost cuts underlie 2Q EPS growth," the report said.


-- Written by Andrea Tse in New York.



>To contact the writer of this article, click here: Andrea Tse.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs