Stocks posted losses in choppy trading as a worsening outlook for the global economy vied with hopes of central bank stimulus. On Sunday, a report showed China’s services sector expanded at its slowest pace in more than a year, adding to worries about the nation’s economy. Also, anxieties over the health of the Spanish banking system and the possibility that Greece could soon exit the euro remain high. U.S. factory orders showed a surprise drop, adding to souring sentiment about domestic growth. Orders for goods produced in U.S. factories decreased 0.6% in April. Tech stocks ended with mixed results, led by late gains from Salesforce.com and more disappointments from Facebook and Groupon. Salesforce rose 0.18% after the co. said it would acquire social-media marketing company Buddy Media for $689 million. Also, gains came from Apple, Oracle, Seagate Technology and Braoadcom. Facebook fell almost 3% after Bernstein Research initiated coverage with an underperform rating and a $25 price target. Research In Motions also continued to suffer following the co.’s disappointing forecast last week, giving up 5.85%. In the evening trade Starbucks fell 2.6% as the co. said it will acquire privately held La Boulange bakery chain for $100 million in cash. Implied volatility inched lower on light trading volumes.
Tuesday, June 5, 2012
Extended losses on global worries
Stocks posted losses in choppy trading as a worsening outlook for the global economy vied with hopes of central bank stimulus. On Sunday, a report showed China’s services sector expanded at its slowest pace in more than a year, adding to worries about the nation’s economy. Also, anxieties over the health of the Spanish banking system and the possibility that Greece could soon exit the euro remain high. U.S. factory orders showed a surprise drop, adding to souring sentiment about domestic growth. Orders for goods produced in U.S. factories decreased 0.6% in April. Tech stocks ended with mixed results, led by late gains from Salesforce.com and more disappointments from Facebook and Groupon. Salesforce rose 0.18% after the co. said it would acquire social-media marketing company Buddy Media for $689 million. Also, gains came from Apple, Oracle, Seagate Technology and Braoadcom. Facebook fell almost 3% after Bernstein Research initiated coverage with an underperform rating and a $25 price target. Research In Motions also continued to suffer following the co.’s disappointing forecast last week, giving up 5.85%. In the evening trade Starbucks fell 2.6% as the co. said it will acquire privately held La Boulange bakery chain for $100 million in cash. Implied volatility inched lower on light trading volumes.
