Stock losses deepen on global economic concerns

Japan reports weak growth, and Greece logs yet another quarter of contraction. Motorola Mobility will lay off 4,000 workers. Groupon posts earnings after the close.

By Melly Alazraki Aug 13, 2012 9:31AM
Updated at 12:30 p.m. ET

Stocks slipped Monday after a report showed economic weakness in Japan, renewing concerns about global growth.


The Dow Jones Industrial Average ($INDU) was down 91 points at 13,117. The S&P 500 ($INX) was down 7 points at 1,399. The Nasdaq Composite ($COMPX) was down 16 points at 3,00.


Japan said its economy grew at an annualized pace of 1.4% in the second quarter, slowing from 5.5% in the first quarter and missing growth projections for 2.7% growth.

With fewer corporate earnings out these days, investors are focusing on economies. Japan's figures add to last week's disappointing Chinese trade figures and data out of Europe showing factory output in its strongest economy had fallen by more than expected in June, raising concerns about a further slowdown in global growth.
Asian markets closed mostly lower Monday. European stocks ended lower as the debt crisis continued to weigh in on investors. Greece said its economy contracted by 6.2% in the second quarter as austerity measures continued to take a toll. The drop follows a 6.5% GDP decline in the previous quarter. And amid Spain's high borrowing costs, concerns that the country may need an international bailout continue to mount.


Monday's pull-back comes on the heels of a five-week win streak for stocks, partly fueled by hopes that central banks will intervene with further easing measures as well as by expectations that the ECB is ready to act soon to ease funding pressures on certain eurozone nations.


Groupon (GRPN) will report earnings after the close. MarketWatch reports that analysts currently expect revenues for the second quarter to jump 46% from the same period last year to $573.1 million, according to FactSet. Earnings are expected to be 3 cents per share.


Independent refiner Tesoro (TSO) said it will buy BP Plc's (BP) refinery in Carson, Calif., and related assets for about $2.5 billion.


Motorola Mobility, which was bought by Google (GOOG) in a $12.5 billion acquisition in May, told employees Sunday that it will lay off 20% of its workforce and close a third of its 94 offices worldwide. A third of the 4,000 jobs lost will be in the U.S.

Google (GOOG) is also buying Frommer's travel publishing business from John Wiley & Sons.


Shares of Sears Holdings (SHLD), the retail empire controlled by billionaire Edward Lampert, are surging in early trading after the company announced plans to spin off some of its stores not connected to its flagship brand.


Pfizer (PFE) filed the initial public offering plan of about $100 million in shares for its animal health business. The pharmaceutical will use the proceeds to pay off debt.


Elan (ELN) also said Monday directors have approved the spin off of its discovery science and neotope biosciences businesses. It expects the new company, Neotope Biosciences, to be listed on a U.S. exchange by the end of the year. Elan shares took a beating last week after the Irish drug company's partners abandoned a development program for treatment for Alzheimer's disease.


FedEx (FDX) will offer voluntary buyout incentives to certain employees based in the U.S. as part of its efforts to improve efficiency and reduce costs. 


Barnes & Noble (BKS) cut prices on three models of its Nook e-reader and tablet devices Sunday ahead of back-to-school shopping and amid speculation that rival Amazon.com (AMZN) is preparing to introduce a new version of its Kindle Fire tablet.


Goldman Sachs upgraded Campbell Soup (CPB) to "conviction buy" from "sell," saying the risk-reward ratio is now favorable. The firm also upgraded J.M. Smucker (SJM) to "buy" from "neutral," saying the food producer will benefit from an improved cost profile. 


Yahoo (YHOO) was downgraded to a "hold" by Stifel Nicolaus due to the raised possibility that the Internet company might keep some of the cash it gets through the sale of its Alibaba stake to invest in the business.


  • More analyst calls here.


General Motors (GM) is recalling more than 38,000 Chevrolet Impala police cars in North America because the lower front control arms could fracture, increasing the risk of crash.


The next test for Facebook (FB) stock after its failed IPO could come soon, The New York Times reports. More than 1.6 billion shares will be eligible to come on the market in several waves starting on Thursday. Investors fear that an influx of shares could cause prices to fall even more.
187Comments
Aug 13, 2012 11:55AM
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Socialist, liberals and those who want more stimulus and government spending, do not believe that government cost money. They also, believe government can solve all our problems. These people do not face reality. If you cannot face reality you can not solve the problem.
Aug 13, 2012 11:12AM
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Apparently the Europe/Greece excuse has been used to much, so, now they are going with the growth excuse.  These excuses are almost as good as the gas pricing excuses.
Aug 13, 2012 11:52AM
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>>>HOW MANY PEOPLE HAVE BEEN HIRED IN THE PAST THREE YEARS BY POOR PEOPLE...???<<<

 

On the otherhand, how many cars are purchased by people that have no job?   What you're missing is that there's a symbiotic relationship between us all.  Rich, and those who want to be rich, will neither stay or become rich unless there's a market for their goods and services.  If consumers have neither jobs nor money, there will be no wealth creation.

Aug 13, 2012 9:49AM
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slow down at the day job from international concerns.  wage freeze for at least a year.  also a freeze on vacation acrual time also for at least a year.  not a good sign
Aug 13, 2012 9:49AM
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Paul Ryan certainly wasn't a surprise pick, but an interesting one nonetheless.  Looking into his voting record, he has a fairly consistent history of voting pro-marriage, pro-gun and anti-abortion.  However, bottom line, in his 13+ years in the House, he has consistently voted for some of the biggest expansions of the federal government in history. 

He voted for the Patriot Act initially, and has since voted several times to extend it.  He also voted in favor of the creation of the Dept of Homeland Security.  He voted for No Child Left Behind and also for the expansion of WIC and the Head Start Program.  He voted in favor of the Prescription Drug Bill.  He also voted to increase the debt ceiling.  Ryan also voted for TARP and for the extension of UE benefits.  In addition, Ryan has voted to expand the Temporary Aid to Needy Families program and he voted for the Energy Policy Act of 2005, costing billions.

Forget about the same ol' tired, "My side is better than your side" banter - all you establishment, big government partisan hacks should be absolutely, positively giddy this morning - you're in a "Win-Win/Can't Lose" situation.  On the one hand, you have Obama/Biden, who have a strong record of expanding the size and power of government.  On the other hand, you have Romney/Ryan, who also have a strong record of expanding the size and power of government.  To gripe about the differences in these candidates is like an alcoholic standing in front of a fully stocked bar and griping because they don't stock a particular brand of tequila.  So, instead of pi$$ing and moaning about mostly small and irrelevant differences between the candidates, relax and celebrate and have no fear; regardless of who wins, you'll see more government - not less, we'll continue to run massive deficits, our debt will continue to rise and our individual freedoms will continue to disappear.

For those of you who are truly interested in less government and more liberty, I suggest you stop feeding the donkeys and elephants.
Aug 13, 2012 11:11AM
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Well I find it refreshing that Romney and Ryan are trying to come up with a solution to a problem that could potentially bankrupt us.The left want things to go on just the way they are,they think that little bit of tax increase on the rich will solve things,we're beyond that right now I think.If we have to take less in benefits in 10 or 20 years I'm willing to save our kids from a life like my grandparents had to go through in the 20's and 30's.

Aug 13, 2012 11:40AM
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V_L,

The Vetting is fine... We should however go back and examine our current President.   Demand his tax returns, college transcripts, CREDIT report, Thesis copy, Birth Certificate, etc.   A question should be asked why the multiple Social Security numbers.

This corrupt Chicago machine Alderman  wannabe, is the one that needs to be vetted....

His tax returns from 1996-2004 need to be gone over by forensic accountants.  

In short, we need to air his dirty laundry...   And Harry Reid's and Bella Pelosi's too...
Aug 13, 2012 10:55AM
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Either way it's going to be okay. Whoever is president, if they don't represent the middle class and start trying to help us and our economy, there will be a revolution. Watch out. This would make Occupy look like a picnic.
Aug 13, 2012 10:09AM
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it took about 80 years for the banks to get glass-steagall deleted.  they will not let it get re-established again. 

 

>>>>>We need Glass-Steagall reinstated, not more free reign for banks.<<<<

Aug 13, 2012 11:17AM
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I quote:
"McIlroy now king of golf, NOT Tiger"

 

In November the quote will like this:

"Romney now US president, NOT Obama"

 

We are simply tired of people who are only good at screwing others.

Aug 13, 2012 12:18PM
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WOW !! Some here think that you have to be rich to employ people or own a business ? I guess from the point of view of you folks who have been living off the government for weeks on end (are you at 99 yet?), that might make sense to you-again from your point of view-you do nothing- so you have nothing !

 let's put it another way; "To much is given, much is expected". only those who create, build, active in community, building networks of people, problem solvers (not creators) can employ those who need jobs and improve the communities where they live, and promote a sustainable lifestyle. Nothing in that previous statement says you have to be rich. No one is going to give you anything as long as you sit behind that keyboard just to trash talk everyone.

 

Now it time to go to work, get off your blessed assurances and do something !

Aug 13, 2012 10:12AM
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We are in bad shape and need anyone but this Dictator/Tyrant we now have.
Aug 13, 2012 11:03AM
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Only in the world of the looney left is being a successful business man who makes a lot of money considered a negative. 

What we need is a good ol' fashioned community organizer that surrounds himself with guys that bomb the Capital building (Ayers), weirdos that think Animals have constitutional rights (Sunstein), douche bags that think Americans have no right to self defense (Eric Holder) and sexual deviants that think having a class for pre-teens on safe and more pleasurable sodomy cool (Jennings).
Aug 13, 2012 11:42AM
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The RICH here, the RICH there

NOW

HOW MANY PEOPLE HAVE BEEN HIRED IN THE PAST THREE YEARS BY POOR PEOPLE...???

IF THE TAXPAYERS (THE RICH) DON'T MAKE MONEY AND DON'T PAY TAXES AS A RESULT, WHERE IS THE MONEY THE FED WILL GIVE YOU COMES FROM????

 

NOW IF ALL THE RICH WOULD GIVE THEIR MONEY TO ALL THE "CRYING POOR PEOPLE" WHAT DO YOU THINK THEY WILL DO WITH IT..............they don't even have a clue ! ! ! ! !

Aug 13, 2012 10:29AM
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"
Google to cut 4000 Motorola Mobility jobs, take $275 million charge"


Got to free up money for a donation?
Aug 13, 2012 10:07AM
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We need Glass-Steagall reinstated, not more free reign for banks.

Wall Street and the mega-banks are supporting Romney over Obama. Romney wants to repeal bank regulations. How will this help us?

Aug 13, 2012 11:34AM
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Motorola Mobility, which was bought by Google in a $12.5 billion acquisition in May, told employees Sunday that it will lay off 20% of its workforce and close a third of its 94 offices worldwide. A third of the 4,000 jobs lost will be in the U.S. 


In the world of the looney left, this is ok because Google is a part of their looney lefty crowd. If a moderate or conservative company did this, they would be Hitler. The hypocrisy of the libtards knows no limits.
Aug 13, 2012 12:43PM
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Has anyone heard from Oprah this election, Why is she being quite?
Aug 13, 2012 12:31PM
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Oh, i see. They are just now starting to worry about slow Economic growth !!!!?????!!!!!!  Your many years too late Morons.
Aug 13, 2012 12:49PM
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Now............IMPACT ON THE MARKET.......WHO'S FAULT IS IT???

 

If it is bad, it sure will be Ryan

It if is good, it sure will be Obama

 

Funny, Obama can't even deal with Romney, he is picking on the VP.

Obama doesn't have a VP, he just got a CLOWN.

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