Wall Street opens down
Posted by admin | Under corporations, facts, information, management, occupation Monday Jul 12, 2010U.S. stocks opened lower Monday as investors remain concerned about budget problems and the situation of banks in Europe, but activity in the area of mergers and acquisitions limit their decline.
A few minutes after opening, the Dow Jones gives 31.15 points, or 0.3%, to 10,166.88 points. The S & P 500 was down 3.77 points (0.3%) to 1074.19 points while the Nasdaq went up into the green and gained 0.3% to 2203.37 points.
Wall Street took a breather after the biggest weekly increase recorded by the S & P this year and before the start of the season results will be given after the closure of Alcoa.
The questions also persist about the strength tests conducted on the European banks.The magazine Der Spiegel reported this weekend that the test included a discount on the German debt, a hypothesis that several sources had previously rejected.
"There is a risk that banks are not doing that well in these tests," said Dan McMahon of Raymond James Financial."We do not know how likely it is but there is a certain pessimism.
Aon Corp., the first global insurance broker, announced that it would buy services company Hewitt Associates human resources for about 4.9 billion dollars (3.9 billion euros) in cash and stock.
The action Hewitt burns 33% to 47.05 dollars while Aon was down 7.4% to $ 35.50.
"This new (fusion) is very positive when we start to earnings season," said Hugh Johnson, chief investment officer Hugh Johnson Advisors. "It's very positive when we see money flowing into this market."
Title Playboy Enterprises also jumped 34.3% to 5.29 dollars.The eponymous magazine founder Hugh Hefner has presented an agreement to leave the company of NYSE, proposing to buy all shares it does not already own for $ 5.50 in cash.