It appears that on second thought Spain might just need a bigger boat.
Fear that the struggling eurozone member is in much worse shape than originally thought drove the Dow down 220 points at the open, as Spanish 10-year bonds rose above 7.5%, a figure considered to be a sign of serious financial danger. In response to the news, securities regulators in Spain and Italy both instituted temporary short-selling bans Monday to try to stop the heavy selling in European markets.
The spillover in the U.S. was as predictable as it was swift, with investors selling stock positions and moving into U.S. Treasuries, with the 10-year Treasury yielding an historic low of 1.395% before ending at 1.44%. Oil and copper prices also sank, and the euro weakened further, dropping to $1.21 by the end of the day.
However, U.S. markets steadied themselves during the day to hold down losses. When the dust settled, the Nasdaq fell 1.2% to end at 2,890, while the S&P fell 0.89% to 1,350, and the Dow slipped 0.79% to 12,721.
Beyond the mess in Europe, earnings were once again market movers, with disappointing news from McDonald’s (NYSE:MCD) pushing its shares down over 2% after the company missed earnings and revenue expectations due to slowing global economy. Halliburton (NYSE:HAL) also shared in the earnings woes, but its shares managed to climb 2.4% on the day. Toymaker Hasbro (NYSE:HAS) made it a trio by also announcing lower profits. However, Hasbro managed to beat the Street estimates enough to see its stock price climb nearly 4% on the news.
Telecom laggard Nokia (NYSE:NOK) managed to gain just over 7% (12 cents) on the day despite a downgrade from Moody’s (NYSE:MCO), and the small momentum carried over to another struggling member of the family, Research In Motion (NASDAQ:RIMM), which managed to eke out a 1.25% (9 cents) gain.
The technology sector in general didn’t fare well, though, as Microsoft (NASDAQ:MSFT) fell 2.7%, while Oracle (NASDAQ:ORCL) dropped 1.5%, although no particular news came out on either stock. Adobe (NASDAQ:ADBE), Red Hat (NYSE:RHT) and BMC Software (NYSE:BMC) all fell over 2% on the day.
The remainder of the earnings calendar is full this week, with UPS (NYSE:UPS), AT&T (NYSE:T), Ford (NYSE:F) Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Facebook (NASDAQ:FB) all set to release their latest reports.
- Zynga (NASDAQ:ZNGA): Up 6.67% (32 cents) to $5.12
- Arena Pharmaceutical (NASDAQ:ARNA): Up 3.99% (38 cents) to $9.90
- Caribou Coffee (NASDAQ:CBOU): Up 4.11% (46 cents) to $11.66
- Petmed Express (NASDAQ:PETS): Down 14.03% ($1.58) to $9.68
- Vivus (NASDAQ:VVUS): Down 6.96% (52 cents) to $22.47
- JDS Uniphase (NASDAQ:JDSU): Down 5.59% (52 cents) to $8.79
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he is long MSFT and AAPL.