LONDON (ShareCast) - With US and European debt fears taking their tolls, stocks dropped by an average 2% on Monday. While the Dow clawed back from its earlier +300-point fall, the index still closed down 249 (-2.11%) at 11,547. Meanwhile, the Nasdaq dropped 49 (-1.92%) to 2,523 and the S&P 500 fell 23 (-1.86%) to 1,193.

A so-called “super committee” of US politicians seem unable to reach a deal on $1.2trn of cuts to the federal budget. This stasis at the top level of government means the US’s credit rating will come under more pressure following the August downgrade by Standard & Poor’s from AAA to AA+.

However, it seems that there is still a ray of hope. In the Wall Street Journal, Montana Senator Max Baucus reportedly stated that "negotiations are continuing" and that all the "distress" resulting from the lack of agreement would have served as incentive for both parties to "work more creative."

Another nation with its credit rating at risk is France. Moody's has warned that increased government bond yields and an uncertain economic outlook has put its AAA credit rating at risk. "Elevated borrowing costs persisting for an extended period would amplify the fiscal challenge the French government faces amid a deteriorating growth outlook, with negative credit implications," credit office Alexander Kockerbeck said.

COMPANY MOVEMENTS

Financials bore the brunt of the sell-off, with JPMorgan Chase, Citigroup, Morgan Stanley and Bank of America suffering steep losses.

Shares of Hewlett-Packard were down ahead of its third quarter earnings figures released after the bell. Other tech stocks including LinkedIn, Apple, Google and IBM, also finished lower.

Alleghany, the property and liability insurer, fell lower after it confirmed the acquisition of reinsurance company Transatlantic for $3.4bn. The $59.79 per share price tag is a 10% premium over Friday's closing price of $54.43 for Transtalantic.

Biopharmaceutical company Gilead Sciences dropped after acquiring Pharmasset for $137 per share, in an agreed deal that values the drugs developer at $11bn. Pharmasset finished over 80% higher.

MACROECONOMY

The Chicago Federal Reserve´s national activity index rose to -0.13 in October from -0.20 the month before.

Existing home sales rose by 1.4% on month in October to 4.97m (Consensus: 4.8m).

BC

S&P 500 - Risers
Nvidia Corp. (NVDA) $14.63 +5.03%
Macy's Inc. (M) $31.01 +2.14%
E*TRADE Financial Corp. (ETFC) $8.40 +2.07%
Janus Capital Group Inc. (JNS) $6.20 +1.97%
Family Dollar Stores Inc. (FDO) $57.57 +1.50%
GameStop Corp. (GME) $22.72 +1.16%
Reynolds American Inc. (RAI) $40.55 +1.10%
Patterson Companies Inc. (PDCO) $29.32 +1.03%
Dentsply International Inc. (XRAY) $33.93 +1.01%
Ross Stores Inc. (ROST) $86.91 +0.94%

S&P 500 - Fallers
Eastman Kodak Co. (EK) $1.10 -9.09%
Gilead Sciences Inc. (GILD) $36.26 -9.08%
Wynn Resorts Ltd. (WYNN) $112.07 -7.96%
Genworth Financial Inc. (GNW) $5.78 -5.09%
Bank of America Corp. (BAC) $5.49 -5.02%
Citigroup Inc. (C) $25.00 -4.87%
Goodyear Tire & Rubber Co. (GT) $12.14 -4.86%
ProLogis (PLD) $26.21 -4.83%
AK Steel Holding Corp. (AKS) $8.01 -4.76%
Tiffany & Co. (TIF) $71.87 -4.73%

Dow Jones I.A - Risers

Dow Jones I.A - Fallers
Bank of America Corp. (BAC) $5.49 -5.02%
Hewlett-Packard Co. (HPQ) $26.86 -4.04%
Walt Disney Co. (DIS) $34.33 -3.65%
Caterpillar Inc. (CAT) $91.12 -2.99%
Intel Corp. (INTC) $23.57 -2.96%
Pfizer Inc. (PFE) $18.96 -2.92%
Boeing Co. (BA) $65.56 -2.82%
United Technologies Corp. (UTX) $74.07 -2.68%
3M Co. (MMM) $78.39 -2.67%
General Electric Co. (GE) $15.24 -2.62%

Nasdaq 100 - Risers
Nvidia Corp. (NVDA) $14.63 +5.03%
Henry Schein Inc. (HSIC) $61.75 +1.28%
Patterson Companies Inc. (PDCO) $29.32 +1.03%
Dentsply International Inc. (XRAY) $33.93 +1.01%
Ross Stores Inc. (ROST) $86.91 +0.94%
Seagate Technology Plc (STX) $16.15 +0.87%
Urban Outfitters Inc. (URBN) $26.12 +0.62%
Comcast Corp. (CMCSA) $21.52 +0.42%
O'Reilly Automotive Inc. (ORLY) $75.78 +0.41%
J.B. Hunt Transport Services Inc. (JBHT) $43.68 +0.37%

Nasdaq 100 - Fallers
Gilead Sciences Inc. (GILD) $36.26 -9.08%
Wynn Resorts Ltd. (WYNN) $112.07 -7.96%
Dish Network Corp. (DISH) $23.59 -4.61%
Research in Motion Ltd. (RIMM) $17.36 -4.56%
First Solar Inc. (FSLR) $43.53 -4.20%
Amazon.Com Inc. (AMZN) $189.25 -4.00%
Infosys Technologies Ltd. (INFY) $50.98 -3.97%
Priceline.Com Inc. (PCLN) $477.65 -3.88%
Lam Research Corp. (LRCX) $38.99 -3.68%
eBay Inc. (EBAY) $28.75 -3.56%

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE