The torrential market downpour skipped the pond and is having devastating effects in the United States; investors are exiting stocks and taking shelter in government bonds. The United States 10-Year Treasury Note hit a record low, with yields receding as small as 1.414%, while bailouts seem inevitable in Spain and funds are increasingly scarce in Greece.

It turns out Valencia isn't the only place that needs immediate attention, as six Spanish regions are looking toward the central government for financial help. The Spanish 10-year bond yield is skyrocketing, now trading above the dangerous 7% level. The country still has to sell over $30 billion in bonds this year to cover its deficit and pay back existing debt maturing in 2012.

Spain is the main worry due to the country's size, but Greece is still in the most precarious position in the eurozone. Greece has not fulfilled the stipulations placed on it by the ECB in exchange for its 200-billion-euro bailout. If the austerity measures are not met, the spigot will be turn off and the country will have no option but to default and subsequently exit the euro.

Market recap
The systemic problems emanating from Europe are causing investors to flee the market, with the Dow Jones Industrials (INDEX: ^DJI) falling 1.15% at midday. Despite dividends offering greater yields than the 10-year note, the S&P 500 (INDEX: ^GSPC) is down 1.35% on the day. Oil prices also retreated heavily on the day. West Texas Intermediate prices dropped 2.75%, thanks to the debt concerns that suggest oil demand will be curbed in the near term.

In the Dow, McDonald's (NYSE: MCD) dropped 3% after releasing earnings before the market opened. The fast-food restaurant posted earnings of $1.32, missing analyst estimates by $0.06. The company was hurt by a strong dollar which shaved $0.07 per share off its quarterly earnings.

Halliburton (NYSE: HAL) also released its second-quarter earnings today and continued the trend of impressive earnings from the oil services majors. The stock is up 0.85% on the day. The exploration and production service provider recorded revenue of $7.2 billion, a 22% increase year over year, and EPS of $0.80, slipping past estimates by $0.05. Like Schlumberger last Friday, international revenue and operating margins gave Halliburton the extra boost.

Facebook (Nasdaq: FB) is down 1% at midday as the company is gearing up for its first public earnings report after its IPO launch in May. Analysts expect revenue of $1.15 billion and EPS of $0.12 as investors

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