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US Equities Continue to Slide

US stocks finished in the red and near session lows today, as data from the US economic docket disappointed investors, while concerns out of Greece and Spain continued to do their part in sinking global sentiment. Treasuries moved sharply higher on an unexpected contraction in the Philly Fed Manufacturing Index and a surprising decline in the Index of Leading US Economic Indicators, while jobless claims were unchanged from last week. In equity news, Dow member Wal-Mart Stores reported better-than-expected 1Q earnings and revenue, which gave a much-needed boost to the company after the recent bribery allegations at its Mexican unit. Elsewhere, Limited Brands posted strong quarterly results but gave a disappointing 2Q outlook, while Dow component JPMorgan Chase was under pressure following a New York Times report suggesting last week's $2 billion trading loss has grown by at least 50%. Finally, in M&A news, Agilent Technologies Inc reached an agreement to acquire Denmark-based cancer diagnostic company Dako for $2.2 billion in cash, while Sears Holdings Corp announced plans to pursue a partial spin-off of its stake in Sears Canada Inc. The Dow Jones Industrial Average (DJIA) was down 156 points (1.2%) to 12,443, the S&P 500 Index lost 20 points (1.5%) to 1,305, and the Nasdaq Composite fell 60 points (2.1%) to 2,814. In moderate volume, 939 million shares were traded on the NYSE and 2.0 billion shares changed hands on the Nasdaq. WTI crude oil fell $0.32 to $92.49 per barrel, wholesale gasoline was down $0.05 at $2.87 per gallon, and the Bloomberg gold spot price gained $34.57 to $1,574.32 per ounce. Elsewhere, the Dollar Index—a comparison of the US dollar to six major world currencies— was flat at 81.44. Dow member Wal-Mart Stores Inc. (WMT $62) reported 1Q earnings of $1.09 per share, above the $1.04 consensus estimate of analysts surveyed by Reuters, with revenues increasing 8.6% year-over-year (y/y) to $112.3 billion, topping the $110.5 … [Read More...]