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The Beating Ain’t Done Yet: Monday’s IP Market Recap

However, an afternoon rally helps stem some losses


InvestorPlace Market RecapMonday didn’t start out how investors might have hoped, as persistent worries about the Federal Reserve’s stimulus policy and a disquieting statement from The People’s Bank of China that led to losses in Asia sent U.S. stocks plunging early before a modest rally pared the losses by day’s end.

The People’s Bank urged a cautious lending approach for China’s largest banks, while asking them to to improve balance sheets, warnings that spread fears of a liquidity crunch through the markets.

The S&P 500 dropped 1.21% to close at 1573.09. The Nasdaq lost 1.09% to 3320.76, marking its worst four-day losing streak since 2011. The Dow Jones Industrial Average lost 0.94% to close at 14659.56, and has now shed a full 6% since it hit 15542.20 in May.

Leading the S&P 500 and Nasdaq lower was Apple (AAPL), which fell 3% and briefly dipped below $400 for the first time since mid-April, putting the stock down 25% year-to-date. Jefferies lowered its 12-month price target on AAPL from $420 to $405 based on weakness in iPhone sales and inventory levels.

A majority of the tech sector followed Apple down, with Yahoo (YHOO) tumbling nearly 4%, and Hewlett-Packard (HPQ) and Intel (INTC) falling close to 3%.

June did get another big Merger Monday. Vanguard Health Systems (VHS) surged after inking a $1.8 billion acquisition deal with Tenet Healthcare (THC). The $21-per-share offer represents a 70% premium to VHS’ Friday closing price. THC finished the day up more than 4%.

Meanwhile, Vodafone (VOD) bought Kabel Deutschland (KBDHY) — Germany’s largest cable operator serving nearly 8.5 million customers — for $10.1 billion, marking its entry into the growing German cable market. Vodafone finished up fractionally on the news.

 Three Up

  • Isis Pharmaceuticals (ISIS): Up 29.2% ($6.43) to $28.42.
  • Hercules Offshore (HERO): Up 5.9% (38 cents) to $6.83.
  • Blackberry (BBRY): Up 2.4% (33 cents) to $14.17.

Three Down

  • Walter Energy (WLT): Down 16.1% ($2.04) to $10.60.
  • Trina Solar (TSL): Down 7.7% (43 cents) to $5.16.
  • Arch Coal (ACI): Down 6.7% (26 cents) to $3.65.

Marc Bastow is an Assistant Editor at As of this writing he is long AAPL.

Article printed from InvestorPlace Media,

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