A late-day sell-off, for the third consecutive day, witnessed the markets go slightly lower on Wednesday. On a lackluster day of major events that could negatively impact the indices, markets were partially affected by a rise in Treasury yields. Euro-zone debt crisis re-surfaced concerns among investors but it was subdued by positive domestic data on regional manufacturing and industrial production.
The Dow Jones Industrial Average was down 0.17% to 11,457.47. The S&P 500 slipped 0.51% to 1,235.23 and the tech-laden Nasdaq Composite registered a modest decline of 0.40% to close at 2,617.22. On the New York Stock Exchange, the advance decline ratio was 1:2 and volume was on the lighter side.
Though the indices shed some points the fall was limited due to some positive news for the economy. The Federal Reserve stated that industrial production, in US, rose at its fastest pace in four months, in November. It was also the fifth consecutive month that the factory output has increased. In another news, Labor Department mentioned that inflation has remained flat last month. Investors had earlier been building some optimism from the decision on the extension of Bush-era tax cuts. Finally, yesterday, the Senate passed the $850 billion package but the bill will now face the test in the House of Representatives.
On to merger and acquisition news, Novartis NVS is reported to have taken full control of Alcon ACL by paying $ 12.9 million for the remaining 23% in the U.S. eye-care company. Novartis rose 5.7% and Alcon gained 1%. Cypress Bioscience CYPB surged 12% after it agreed to be acquired by Ramius LLC, a hedge-fund operator, for about $255 million.
On the financial sector, some key financial stocks such as Goldman Sachs GS and Morgan Stanley MS, fell 1.3% and 1.6% respectively. The fall was after some analysts slashed fourth quarter earnings estimates on investment banks because of lower-than-expected trading volumes in commodities, fixed income and currencies.
Now coming to some individual stocks that outperformed the market were Joy Global JOYG, which jumped 6.9% on the news of an 18% rise in the fiscal fourth quarter earnings. Boston Beer SAM surged 12% after a solid 2010 earnings forecast. U.S. based rare-earth producer Molycorp MCP rose 9.4% after information about China's plan to increase export duties on different rare earth minerals from next year and to retain temporary duties on the export of crude oil, nonferrous metals, fertilizers and coal.
ALCON INC (ACL): Free Stock Analysis Report
CYPRESS BIOSCI (CYPB): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JOY GLOBAL INC (JOYG): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
BOSTON BEER INC (SAM): Free Stock Analysis Report
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