Equities Roundup: Stocks Trade Lower as Germany's Economy Stalls

Equities Editors Desk |


Germany Chancellor Angela Merkel Stocks ended a three-day rally as investors were disappointed by Germany's stagnant economy and the European Unions financial problems, raising concerns that the U.S.'s own prospects for recovery may be weaker as a result. German Chancellor Angela Merkel and French President Nicolas Sarkozy are proposing that all countries in the eurozone to have stronger governance over budgets and economic policy. Showing a public display of unity, the German and French leaders have pledged to defend the euro, and create a new government body consisting of the heads of state of all member nations. The U.S., meanwhile, did its part to pare early losses in the market. Fitch Ratings gave the U.S. a vote of confidence, standing by its AAA rating and stable outlook on the nation's debt. The Federal Reserve also announced that industrial production in July rose 0.9 percent, the largest increase this year. Major retailers also released a slew of good news, with discounters like Wal-Mart (WMT) and TJX Co. (TJX) posting strong earnings, and high-end chain Saks (SKS) narrowing losses on full-price sales. The trend is indicative of consumer spending habits during difficult economic times, as the gap between discount and luxury widens. Oil prices slumped to $86 a barrel, and gold looks to be approaching $1,800 an ounce once again.

Major U.S. Stock Indices

DJIA: 11,355.87 (-1.14 percent)
S&P 500: 1,187.42 (-1.46 percent)
NASDAQ: 2,508.90 (-1.81 percent)
Russell 2000: 699.86 (-2.61 percent)

In other news:

  • What is a "death cross" and why are there so many of them appearing the market? These technical indicators may be signaling a new bear market. [Marketwatch]
  • What exactly is Google (GOOG) getting with the $12.5 billion acquisition of Motorola Mobility (MMI) and why did they pay so much for it? [Economist]
  • Lehman Bros. is tracking down former employees to pay back signing bonuses. [WSJ]
  • Instead of slashing jobs during the current economic slowdown, perhaps the private sector should be using its cash to invest for future prosperity...Or at least out of a sense of patriotism. [NY Times]
  • Is President Barack Obama too nice? [The Atlantic

Check back as more news develops.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AF Astoria Financial Corporation 20.39 -0.30 -1.45 1,142,468 Trade
WMT Wal-Mart Stores Inc. 75.18 -0.26 -0.34 7,330,420 Trade
TJX TJX Companies Inc. (The) 78.64 -0.33 -0.42 2,709,615 Trade
GOOG Alphabet Inc. 905.96 31.71 3.63 3,276,255 Trade
MMI Marcus & Millichap Inc. 25.80 -0.42 -1.60 69,712 Trade

Comments

Emerging Growth

Breathtec BioMedical Inc.

Breathtec Biomedical Inc is a medical diagnostics company. It is engaged in developing & commercializing breath analysis devices for the early detection of infections & life threatening diseases including cancers,…

Private Markets

CF0005, LLC dba Mesa-Marshall #1-2

MESA Resources, Inc. ("MESA") is sponsoring the development of the oil & gas well completion project "Mesa-Marshall #1-2". MESA, founded in 1992, is engaged in the acquisition, exploration and development…

Ozobot by Evollve Inc

Ozobot is a world leader in compact super intelligent robots that entertain and educate through fun interactive gaming.