Markets Pare Losses as Italian Bond Yield Sneak Below 7% Threshold

Scott Redler  |

In Greece, former European banker Lucas Papademos was named the new Prime Minister, which is seen as a positive thing for the restructuring country. Another former European official, Marco Monti, has emerged as the favorite to succeed Berlusconi as PM of Italy. Both would seem to be popular choices among other EU nations hoping to make economic reform more expedient and effective.

Earnings season rumbles on and claimed a major casualty last night in Green Mountain Coffee Roasters (GMCR). The stock had seen extreme weakness for the past few weeks after hedge fund investor David Einhorn, famous for his pre-financial crisis Lehman Brothers (LEHMQ) short, presented a comprehensive bear case. The stock appeared very fragile heading into earnings, and any miss seemed likely to send the stock plummeting. Options heading into the report forecast a 15% move, but the stock is down about 30% this morning, and even off overnight lows. Investors be cautious about this stock, as it could have more downside in store. Einhorn questioned its accounting practices and business practices, which present a pandora's box of issues.

Cisco Systems (CSCO) came out on the other side of the spectrum. The tech company reported a drop in quarterly net profit but a 5% increase in revenue, which was met with enthusiasm by investors. The stock is up over 6% in the pre-market trade.

*DISCLOSURES: Scott Redler has no positions

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