Wednesday, December 14, 2011

STOCKS SINK, OIL FALLS, GOLD GETS KILLED: Here's What You Need To Know, December 14, 2011

View this email online | Add newsletter@businessinsider.com to your address book

Wednesday, December 14, 2011

STOCKS SINK, OIL FALLS, GOLD GETS KILLED: Here's What You Need To Know

Sam Ro | Dec. 14, 2011, 4:00 PM | 1,379 | 8

Basically, everything sold off today.

First, the scoreboard:

Dow: -131.5 pts, -1.1%
S&P 500: -13.9 pts, -1.1%
NASDAQ: -40.0 pts, -1.6%

And now, the top stories:

Italy had another bad bond auction this morning, with €3 billion euros worth of bonds selling at a sky high yield of 6.47%. There was some chatter that S&P would soon strip France of its AAA credit rating. But we heard nothing from the ratings agency today. The euro dipped below $1.30 and European stock markets closed near their lows. The Story Of France, And Why Everyone Thinks It's Going To Lose Its AAA >
Gold got demolished today, crashing through its 200-day moving average. The February futures contract settled at $1,586.90 per ounce, down $76.20 from yesterday. The yellow metal fell another $10. 10 Countries Who Have Been Getting Crushed In The Latest Gold Collapse >
Gold wasn't the only commodity that fell today. Crude oil futures fell 5.2% to $94.95 per barrel. Base metals and food commodities also fell.
Chevron and Transocean were asked by Brazilian authorities to suspend all activity. Chevron was also asked to pay a $10.7 billion fine related to a recent oil spill off the coast of Rio de Janeiro. Chevron and Transocean closed down 3.0% and 3.9%, respectively.
Caterpillar, a key bellwether of the global economy, reiterated its 2011 guidance and published its preliminary 2012 guidance. However, management's estimates for 2011 earnings and 2012 revenue were weak. The company noted "slow growth in the developed parts of the world." Shares closed down 4.4%.
First Solar shares got slammed, falling 21.4%, after management slashed 2011 and 2012 revenue and earnings guidance. The solar panel maker announced another restructuring, which would include around 100 job cuts. This Is The Jim Chanos Presentation That Nailed The Collapse Of First Solar >
Green Mountain Coffee Roasters shares fell 3.3%. According to a Stifel Nicolaus analyst, channel checks revealed that demand in China was falling sharply. This follows a separate report published yesterday that said the K-Cup maker was losing market share.
Today was the first day most of the major Wall Street research houses were able to make there calls on Groupon. For the most part, it was a lukewarm reception. The stock closed down 3.3%.
Avon Products investors cheered, sending shares up 5.1%, after the company announced it would replace CEO Andrea Jung. The company's financial health has deteriorated substantially since Jung took the helm in 1999.
Don't Miss: BARCLAYS: These Are The Absolute Best Stocks For 2012 >