US stocks remained submerged in the red for the entire day on Monday, 30 August 2010. Stocks fell sharply as investors worried about the economy and waited for the monthly employment report. Merger and acquisition news dominated the day, which also witnessed a couple of economic reports. But even action in the M&A space failed to gear up stocks.
For the day, that ended on Monday, 30 August 2010, Dow ended lower by 140.92 points at 10,009.73. Nasdaq ended lower by 33.66 points at 2,119.97. S&P 500 ended lower by 15.67 points at 1,048.92.
All ten economic sectors ended lower led by financial, industrial, consumer discretionary and energy sectors. All but one thirty Dow components ended lower led by Intel and 3M. H-P was the sole winner.
The Commerce Department in US reported on Monday, 30 August 2010 that savings rate for U.S. households fell in July to the lowest level in three months as spending outpaced income. Consumer spending rose 0.4% in July while personal income increased 0.2%. The savings rate fell to 5.9% from 6.2% in June, which had been the highest level in a year.
There were quite a few headliners in the M&A space today. The bidding battle between Hewlett-Packard and Dell for 3Par took turn over the weekend as 3Par deemed HPs bid of $30 per share superior to the offer of $27 per share that it had already accepted from Dell.
Intel announced plans to acquire the wireless unit Infineon Technologies for $1.4 billion in cash. Another Dow component, 3M announced that it will pay for $430 million, or $10.50 for each share of Cogent.
Meanwhile, drug maker Sanofi-Aventis offered $18.5 billion in cash to acquire Genzyme. Genzyme immediately rejected the offer as inadequate.
For every stock on the rise, nearly four fell on the New York Stock Exchange, where 818 million shares traded.
In the currency market on Monday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies erased earlier losses and moved up marginally.
Crude prices ended lower on Monday, 30 August 2010 at Nymex. Prices fell in tandem with US stocks ahead of the crucial job report, which is supposed to be coming up by the end of the week. On Monday, crude oil futures for light sweet crude for October delivery closed at $74.7/barrel (lower by $0.47 or 0.6%). Also weighing on energy futures was Hurricane Earl, which was upgraded to Category 3 on Monday, and was barreling down toward Puerto Rico. It could hit the eastern seaboard later this week.
Precious metals ended little higher on Monday, 30 August 2010 at Comex. Prices rose as government reported a disappointing savings rate figure for US households. Prices remained choppy for the entire day. On Monday, gold for December delivery ended at $1,239.2 an ounce, higher by $1.3 (0.1%) on the New York Mercantile Exchange. Gold had swerved in and out of positive territory earlier in the session. September Comex silver futures ended higher flat at $19.04.
Indian ADRs ended substantially lower on Friday. Tata Motors and HDFC Bank were the main losers shedding 4.1% and 2.1% respectively.
Tomorrow, no economic report is expected. But earning reports will continue to trickle in.
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