Stocks were under pressure, as persistent pessimism over the global business climate weighed on markets. Germany's business climate index fell to its lowest level since February 2010. Angela Merkel and François Hollande reportedly failed to agree on a time frame for beginning joint oversight of Europe’s banking system. Also, Greek officials reportedly rebutted reports that the country would not qualify for further help until it closes a budget shortfall of 20 billion euros. Apple fell 1.33% after the co. said it sold more than 5 million iPhone 5 devices during its first weekend on the market, this was considered slightly disappointing. Separately, Foxconn, which supplies parts to Apple, shut its China plant after a brawl broke out. Google hit an all-time high of $750.04 and closed 2.1% higher after Citigroup raised its price target to $850. Facebook declined 9.1% after Barron’s estimated the worth of its shares at roughly $15. Also, Stifel Nicolaus issued a note saying that investors may be overestimating the near-term potential for Facebook’s advertising business. The chip sector was weighed down by declines in Intel and Advanced Micro Devices after Evercore Partners cut their PC sales forecast, calling for a unit decline of 4% in 2012 from the previous year. Intel was down 1.43%, AMD slid 3.89%, Hewlett-Packard gave up 2.16%, while Dell shed 1.98%. Micron also fell 1.65% after Pacific Crest Securities cut the stock’s rating to sector perform, or neutral, from outperform, citing the uncertainty in the PC market. In the evening trade Caterpillar declined 2.1% after the co. cut a yearly earnings forecast citing “a number of geopolitical and economic factors driving uncertainty in the world today”.
