Mid-Day Market Report (12/12/11)

Mid-Day Market Action


US: TheUS markets tumbled on Monday morning over renewed fears of European debt crisis, coupled with Intel’s unexpected guidance cut. S&P 500: 1230.69 (-1.95%), Dow: 11947.75 (-1.94%)

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Europe: FTSE: 5427.86 (-1.83%), DAX: 5785.43 (-3.36%), CAC: 3089.59 (-2.61%)

Asia:Japan: 8653.82 (1.36%),Hong Kong: 18575.66 (-0.06%),Korea: 1899.76 (1.32%),Singapore: 2701.72 (0.26%),India: 4764.60 (-2.10%),Australia: 4253 (1.18%)

Metals: Gold: 1665.20 (-3.01%), Silver: 31.09 (-3.61%), Copper: 3.46 (-2.91%)

Energy: Crude Oil: 98.05 (-1.37%), Natural Gas: 3.255 (-0.06%)

Agriculture: Corn: 5.88 (0.47%), Soya Beans: 11.08 (0.09%), Wheat: 5.77 (0.57%).

10 year US Treasury: 2.000% (-0.061)




Mid-Day News Updates 


US Opens Weak: US stocks tumbled on Monday morning, in a broad sell-off amid renewed fears of European debt crisis, and revenue outlook cut by Intel. S&P 500 is currently trading more than 2% down, and Dow is trading 1.8% down.



Intel Says Q4 Revenue to Miss Target: Intel Corp., the world’s largest chip-maker, reduced its fourth quarter revenue forecast by $1 billion. Intel warned that hard-disk drive supply constraints, resulting from the worst flooding in Thailand in 70 years, is cutting customer’s production of personal computers, and would hurt its current quarter revenue. Intel shares were down 5.0 percent to $23.75 in Monday morning trading.



Italian, Spanish Yields Rise: Italian and Spanish bond yields rise, after European leaders fail to convince the markets that a long-term solution to the debt crisis has been reached. Yields had dropped in the run-up to the summit amid expectations of a definitive plan, but are now reversing those declines. The yield on the benchmark 10-year Italian bond rose 40 basis points to around 6.74%. The Spanish 10-year bond yield was 31 basis points higher at 5.02%. http://online.wsj.com/article/SB10001424052970203518404577094054256571434.html?mod=WSJ_Markets_MIDDLETopStories


Martin Marietta Tables Hostile Bid to Buy Vulcan Materials: Martin Marietta Materials Inc. is planning a hostile takeover of Vulcan Materials in an all-stock transaction valued at $4.7 billion. In a letter to Vulcan Chief Executive Donald James, Martin Marietta said it would pay 0.5 share of its stock for each Vulcan share. After falling initially on the proposal, both stocks moved sharply higher. http://www.bloomberg.com/news/2011-12-12/martin-marietta-seeks-to-buy-vulcan-materials-in-4-7-billion-hostile-bid.html



Economic Calendar


Monday:      Monthly Budget Statement (Nov)

Tuesday:     Retail Sales (MoM) (Nov), IBD/TIPP Economic Optimism (MoM) (Nov),

Business Inventories (Oct), Fed Interest Rate Decision.

Wednesday: MBA Mortgage Applications (Dec 9), Import Price Index (MoM) (Nov),

Import Price Index (YoY) (Nov), EIA Crude Oil Stock Change (Nov 9).

Thursday:    Producer Price Index (YoY) (Nov), Producer Price Index (MoM) (Nov),

Producer Price Index ex Food & Energy (YoY) (Nov), Producer Price Index

(MoM) (Nov), Initial Jobless Claims (Dec 9), Current Account (Q3),

Industrial Production (MoM) (Nov), Capacity Utilization (Nov),

PhiladelphiaFed Manufacturing Survey.

 Friday:       Consumer Price Index (YoY) (Nov), Consumer Price Index (MoM) (Nov),

Consumer Price Index ex Food & Energy (YoY) (Nov), Consumer Price

Index (MoM) (Nov).