The seemingly never-ending concern from the eurozone made itself known again today, causing a broad sell-off across the market. Today's version centers on Greece's rejection of further austerity measures and the frailty of the Spanish banking system, while 10-year government bond rates rose for Spain and Italy. This is not to be confused with yesterday's version, where a similar European induced sell-off focusing on the election upheaval over the weekend tanked all three major indexes.
With that in mind, let's take a closer look at how the major indexes are faring and drill down on a few stocks making headlines.
Gain / Loss
Gain / Loss %
|Dow Jones Industrial Average (INDEX: ^DJI )||(97.03)||(0.75%)||12,835.06|
Source: Yahoo! Finance.
The Dow is performing significantly worse than the other two major indexes, as all but six components closed in negative territory. This marks the sixth straight decline for the index, as it briefly touched on a two-month low. Two of the biggest Dow winners were Disney (NYSE: DIS ) and Pfizer (NYSE: PFE ) , as both turned in gains of more than 1% today.
Disney's profit jumped 21% and shares hit an all-time high, as its theme parks and cable properties help balance out the epic failure of John Carter at the box office. With The Avengers currently a massive success ($702 million worldwide gross after just two weeks), a sequel on the way, and a new Pixar movie due this June, Disney is really on a roll.
Pfizer just got one step closer to approval for its rheumatoid arthritis drug tofacitinib after an FDA advisory panel recommended approval 8-2. This is no rubber-stamp vote, and the FDA will go against the panel's advice, especially where there are mixed votes or safety-versus-efficacy questions, which tofacitinib has. In tofacitinib's case, there are concerns over infections and lymphoma, while X-ray results question effectiveness, but its pill form is preferable to the current injectable drugs, such as Amgen's (Nasdaq: AMGN ) Enbrel already on the market. FDA approvals are increasingly important to Pfizer after the loss of Lipitor and streamlining the company into more of a pure pharmaceuticals play.
After hours, Cisco (Nasdaq: CSCO ) is plunging 9% thanks to poor guidance coming out of a quarter where the company barely topped expectations. Management doesn't like the macro trends for IT spending, where customers are exercising caution, and guided Cisco's fiscal fourth-quarter sales growth to roughly half of what analysts wanted. If tonight's action holds up in the morning, Cisco will be hitting a new 52-week low, giving value investors something to chew on.
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