Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Overnight Markets: S&P 500 posts biggest drop since November on Europe

Overnight Markets: S&P 500 posts biggest drop since November on Europe

US stocks declined on Monday, with the S&P 500 registering its worst day since November, amid renewed concern that the eurozone crisis may intensify.

The Dow Jones industrial average was down 130 points, or 0.93%, at 13,880. The Standard & Poor's 500 Index was down 17 points, or 1.15%, at 1,496. The Nasdaq Composite Index was down 48 points, or 1.51%, at 3,131.

Shares fell after Spanish and Italian bond yields increased, renewing worries about the eurozone's sovereign debt crisis.

Spain's prime minister faced calls to resign over a corruption scandal, while a probe of alleged misconduct involving an Italian bank was expected to widen three weeks before a national election.

Adding to market pressure, data from the US Commerce Department showed overall factory orders for December were below economists' expectations.

McGraw-Hill lost 13.8% after news the US Justice Department plans to sue Standard & Poor's, a unit of McGraw-Hill, over its mortgage bond ratings.

Chevron and Wal-Mart were among the biggest drags on the Dow after analyst downgrades. Chevron dipped 1.1%, while Wal-Mart Stores Inc shed 1.2%.

On the positive side, shares of household products company Clorox increased 0.7% after quarterly profit beat analysts' estimates as a severe flu season boosted sales of disinfecting wipes.

In deal news, Oracle Corp agreed to acquire network equipment company Acme Packet Inc for $1.7 billion net of cash. Shares of Oracle were down 3% while Acme Packet shot up 23.7%.

Shares of Herbalife Ltd ended up 1.3%, recovering its losses ahead of the close, after the Federal Trade Commission corrected an erroneous statement that said the company was the subject of a law-enforcement probe.

In Asia, shares fell on Tuesday in morning trade bringing a recent rally to a halt amid political concerns in Spain and Italy.

The MSCI Asia Pacific Index slid 0.7% to 133 as of 11:38 a.m. in Hong Kong. Japan’s Nikkei 225 Stock Average slipped 1.2% after closing yesterday at its highest level since April 2010.

South Korea’s Kospi Index lost 0.7%. Singapore’s Straits Times Index fell 0.7% and Taiwan’s Taiex Index dropped 0.5%. Hong Kong’s Hang Seng Index slid 1.6% and China’s Shanghai Composite lost 0.4%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter