Fallout from Europe continued to dominate financial news for the early week, with Tuesday’s announcement that Greek Prime Minister George Papandreou was putting last week’s bailout agreement to a referendum sending markets spiraling downward, and more revelations from Monday’s bankruptcy filing of euro debt-riddled brokerage firm MF Global (NYSE:MF).
The major indices were down almost 3% Tuesday on news that a long-awaited deal to bail banks out from Greece’s sovereign debt — reached late last month, sparking an enormous market rally — would go to Greek voters in January. This sparked worries that a populace already suffering some austerity measures might vote down the deal for fear of more economic hardship.
Financial stocks were down across the board, including Barclays (NYSE:BCS, -9.3%, $11.35), Citigroup (NYSE:C, -7.7%, $29.17) and Morgan Stanley (NYSE:MS, -8%, $16.23) — all of which also got slammed Monday on the MF Global news.
Also Tuesday, The Associated Press reported that an unnamed executive from MF Global admitted to regulators Monday that the firm used client cash in its own trades, which would violate government regulations. The admittance came after regulators discovered about $700 million was missing.
Adding to MF’s problems, JPMorgan Chase (NYSE:JPM), which is owed more than $1.2 billion by MF Global, filed an objection Tuesday in bankruptcy court. The filing asks the court to limit MF’s use of cash collateral and asks for preference over other creditors for MF Global’s assets. JPM finished Tuesday down 5.9% at $32.71.
Yahoo (NASDAQ:YHOO), the subject of much takeover talk of its own, announced Tuesday it was making strides into localized advertising with a $270 million purchase of Interclick (NASDAQ:ICLK). Yahoo released a statement saying Interclick’s technology, which includes gathering demographic and geographic data, would “allow Yahoo to expand its targeting and data capabilities to deliver campaigns with stronger performance metrics.” The $9 per share offer gave ICLK a 21% gain on the day, but YHOO couldn’t fight the market, losing 4.5% to $14.93.
- Pharmasset (NASDAQ:VRUS): Up 9.36% ($6.59) to $76.99.
- Acme Packet (NASDAQ:APKT): Up 6.41% ($2.32) to $38.53.
- Expedia (NASDAQ:EXPE): Up 4.27% ($1.12) to $27.38.
- General Motors (NYSE:GM): Down 9.75% ($2.52) to $23.33.
- CME Group (NASDAQ:CME): Down 8.59% ($23.68) to $251.88.
- Royal Caribbean Cruises (NYSE:RCL): Down 8.24% ($2.45) to $27.27.
As of this writing, Kyle Woodley did not own a position in any of the aforementioned stocks. Check out recaps from previous trading days here.