Dow down 200 as stocks end July with a thud
Mark Blinch/Reuters
NEW YORK (CNNMoney) -
This is shaping up to be the worst day for stocks in three months.
The Dow was down more than 200 points in midday trading. The S&P 500 and Nasdaq fell sharply as well. All three indexes have given back the gains they made in July.
Heavy selling overseas, driven by worries about Argentina's latest debt default and more problems with a big Portuguese bank, offset good economic data in the United States released Wednesday.
International markets: European markets fell broadly, with the EuroStoxx 50 index down 1.7%. Lisbon-listed shares of Banco Espirto Santo, the Portuguese bank whose deteriorating funding situation have brought the spotlight back to Southern Europe's shaky banks, was down 42%.
Asian markets, outside of strongly performing Chinese stocks, were also lower.
Argentina failed to rectify its debt problems an defaulted yesterday. Markets were tremendously optimistic on a deal, but nothing has materialized. Argentina's benchmark Merval index is down almost 7%.
Stock movers: Yum Brands, the conglomerate behind KFC, Taco Bell and Pizza Hut, reported disappointing earnings last night and lowered its guidance after its second tainted Chinese meat scandal in as many years. The stock dropped 5% today.
Whole Foods is also hurting. Despite reporting good earnings, the company disappointed on sales and also cut its outlook guidance once again, raising questions about the company's future direction. Its shares, which have been among the worst performers this year, are down more than 3%.
3-D printing stocks are sinking after a poor earnings report from 3D Systems. Its shares dived 10.5% and that put pressure on rivals voxelJet, Stratasys and ExOne.
Bright Spots: A few big names are managing to cut through the chaos. T-Mobile was up 6% following reports that French telecom firm Iliad extended a buyout offer. Sprint, long considered a potential merger partner, is down 3%.
Vistaprint suprised analysts by turning a profit on strong sales, skyrocketing 29%.
And red hot grilled chicken IPO El Pollo Loco was up 10% today.
Glu not holding: Glu Mobile developed a wildly popular game based around celebrity Kim Kardashian, but Wall Street isn't impressed. Even though results beat expectations, the stock is down 19% after announcing that it was buying Cie Games for $100 million.
Impossible is Russia: Adidas, down 15% in Germany, is also lowering its guidance, saying that its reducing its Russian footprint by closing stores or delaying new openings. Golf sales are also lower. It joins McDonald's and Wendy's in reporting difficulties operating in the country.
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