Stocks slip as economy worries outweigh deal news

August 24, 2010 by staff 

Stocks slip as economy worries outweigh deal news, NEW YORK – AP – Stocks are ending lower as worries about the economy than the optimism of a new round of corporate dealmaking.

The shares were up a little after Hewlett-Packard offer 33 percent more than Dell for a data storage provider, but the gains quickly faded.

According to preliminary calculations, the Dow Jones industrial average gave up 39 points, or 0.4 percent, to 10 174. The Standard & Poor’s 500 fell 4, or 0.4 percent, to 1,067, while the Nasdaq composite index lost 20, or 0.9 percent, to 2159.

Falling stocks outnumbered those gaining one fifty-seven in the New York Stock Exchange. Trading volume was very light least 865 million shares.

It is an update to the latest news. Check back soon for more information. AP’s earlier story is below.

NEW YORK (AP) – Stocks drift lower on Monday as a new round of corporate dealmaking was tempered by skepticism about the strength of the economy.

The shares received an early endorsement after a series of new agreements were announced, but the gains quickly faded. The Dow Jones industrial average rose 14 points in afternoon trading. Broader stock indicators were mixed.

Technology Hewlett-Packard Co. and 24 per share offered to 3PAR Inc. just a week after its rival Dell Inc. agreed to buy the provider of data storage and 18 for action. Meanwhile, Potash Corp. of Saskatchewan Inc. formally rejected million and 38.5 BHP Billiton takeover bid for the fertilizer company.

European markets rose after bank HSBC Holdings said it was in talks to buy a controlling stake in Nedbank Group Ltd. of South Africa’s Old Mutual and for as much as 6.8 billion.

Despite the positive deal news, there are still plenty of concerns about the economy likely to keep at bay the great movements in the market. Stocks fell on Thursday and Friday after the unemployment benefit claims rose to its highest level since November.

“Companies are not hiring because they know the rules of the game,” he said. Frank Ingarra, co-portfolio manager at Hennessy Funds. “When you do not know the rules, pack up and go home.”

Ingarra said the companies are reluctant to hire because of uncertainty about the regulatory costs associated with recently adopted financial and health care reform. The possibility of higher taxes to firms has been preoccupied with consumption, he said.

The Dow Jones industrial average rose 14.23, or 0.1 percent, to 10227.85 in afternoon trading. The Standard & Poor’s 500 index rose 1.31, or 0.1 percent, to 1072.82, while the Nasdaq composite index fell 8.77, or 0.4 percent, to 2170.99.

The increase in stocks strictly exceeded decliners on the NYSE, where trading volume remained light. Trading volume was very light at about 520 million shares.

Bond prices dipped slightly. The yield on the benchmark 10-year Treasury, which moves opposite its price, fell to 2.60 percent from 2.62 percent late Friday. That helps to establish the performance of interest rates on mortgages and consumer loans.

“People focus on the head winds more than tailwinds,” said Walter Gerasimowicz, chief investment officer at Meditron Asset Management. He said investors are overlooking the historically low interest rates and signs of corporate strength, choosing instead to focus on disappointing economic data.

The reports are due this week in the housing market, durable goods orders, consumer confidence and a review of second quarter gross domestic product.

Housing continues to be particularly weak after the expiration of the tax credits the government earlier this year. The reports on sales of new and existing homes must be held Tuesday and Wednesday.

For Wednesday’s durable goods are examined for signs of a slowdown in manufacturing was only temporary. A regional manufacturing report Thursday on the Mid-Atlantic region showed that activity contracted, scaring investors. Manufacturing had been the most consistent growth throughout the year.

The University of Michigan also reported its second reading on consumer confidence for the month.

Shares of Hewlett-Packard fell 64 cents to 39.21 and at the same time 3PAR Rose and 7.78, or 43.1 percent, to 25.82 y. Dell fell 12 cents to 11.95 y. Potash rose and 2.97, or 2 percent, to 152.64 y. HSBC shares in the U.S. commercial rose 42 cents to 49.72 y.

Overseas, Britain’s FTSE 100 rose 0.8 percent, Germany’s DAX index rose 0.1 percent, and France’s CAC-40 rose 0.8 percent. Japan’s Nikkei average fell 0.7 percent.

Copyright © 2010 The Associated Press. All rights reserved.

Report to Team

Please feel free to send if you have any questions regarding this post , you can contact on

Disclaimer: The views expressed on this site are that of the authors and not necessarily that of U.S.S.POST.


Comments are closed.