STOCKS GET CRUSHED AND EVERYONE'S AFRAID OF EUROPE AGAIN: Here's What You Need To Know
Europe served up a dose of reality, days before the huge EU summit. First, the scoreboard:
Image: Wikimedia COmmons
Dow: -247 pts, -2.1%
S&P 500: -24 pts, -1.9%
NASDAQ: -53 pts, -2.0%
And now, the top stories:
- German leaders offered some sobering words ahead of Sunday's EU summit. Finance Minister Wolfgang Schaeuble said there wouldn't be a complete solution to the eurozone debt crisis coming out of the summit. This is in contrast to the statement by Merkel and Sarkozy on October 9th, when the leaders promised a solution to the eurozone debt crisis by the end of the month. Nevertheless, people will pay very close attention to Sunday's summit. The schedule was just released, so mark your calendars.
- US banks announced somewhat mixed earnings. Wells Fargo announced disappointing revenue due to shrinking net interest margins. Shares tumbled 8%. Citigroup announced earnings that exceeded expectations. But like its competitor JP Morgan, Citi benefited from a favorable accounting matter. Citigroup shares declined 2%.
- Economic data was disappointing this morning. The Empire State Manufacturing Index came in at -8.48, while economists expected -4.0.
- September industrial production came right in line with expectations at 0.2%. Capacity utilization was at 77.4%, which was just below the expectation for 77.5%.
- Halliburton announced earnings in line with expectations, but profit margins were pressured by higher materials and labor costs. Shares fell 8%.
- Some energy stocks did very well today. Kinder Morgan announced it would acquire El Paso Corp to create the largest natural gas pipeline in North America. Kinder Morgan climbed 5% and El Paso Corp soared 25%.
- Green Mountain Coffee tumbled 10% after hedge funder David Einhorn said he was negative on the stock.
- American Airlines shares crashed so hard they were even halted at one point this morning. Bankruptcy fears have returned to the stock. The stock came off of its low to close down 6% for the day.
- Apple said it sold over 4 million iPhone 4Ss in its first weekend of sale, making it the company's biggest product launch ever. The company announces quarterly earnings tomorrow.
- IBM announces quarterly earnings after the bell. Follow the results at MoneyGame.
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