Image via CrunchBase Here is today's story from Marketwatch which pretty much sums up the economy as a whole right now. Most BioPharma Stocks are down for today. When they do well they tend to do really well but just not today. Monday showed investor's fear as job data comes out Friday. No Jobs = No RecoveryMarket Snapshot for Monday August 30th, 2010.
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fell sharply Monday, adding to losses for August so far, as investors worried about the economy at the start of a data-riddled week, which culminates with the monthly employment report.
"The problem is Friday's unemployment number, and investors may be staying on the sidelines concerned about it," said Howard Silverblatt, senior index analyst at Standard & Poor's.
"Those monthly numbers are important. Whether we're looking at housing, durable goods or anything else, it still comes down to jobs -- no jobs, no recovery," Silverblatt said.
The Dow Jones Industrial Average (DJIA 10,010, -140.92, -1.39%) fell 140.92 points, or 1.4%, to end at 10,009.73, near session lows.
The Dow is currently off 4.4% for August, with only one trading session left in the month.
"The market is having a bit of a temper tantrum, saying businesses should step up and start hiring people or we need one more shot of stimulus," said Burt White, chief investment officer at LPL Financial.
All but one of the Dow's 30 components traded lower. Intel Corp. (INTC 17.98, +0.02, +0.11%) dropped 2.2% after the world's largest computer-chip manufacturer said it would pay about $1.4 billion to acquire Infineon Technologies AG's wireless unit. Read about Intel's deal.
Also weighing on the Dow, shares of 3M Co. (MMM 79.65, -1.35, -1.67%) were off 1.7% after the company said it would buy Cogent Inc. (COGT 11.32, +0.23, +2.07%). Read about 3M's deal.
Hewlett-Packard Co. (HPQ 38.43, -0.13, -0.34%) was the sole blue-chip gainer, up 1.5%, with shares of the technology titan bolstered by a share-repurchase plan amid its pursuit of a deal to acquire 3Par (PAR 31.92, +0.10, +0.31%). Read about H-P's $10 billion buyback authorization.
'No jobs, no recovery.' Howard Silverblatt, S&P
The spate of M&A "illustrates companies are flush with money and willing to use it, and valuations are relatively cheap," said White, who added that buyout premiums being offered are relatively modest, showing "companies are nervous and not willing to overspend."
And, "investors are thinking, if companies are not going to overbuy here, maybe I shouldn't either," he added.
Genzyme Corp. GENZ 69.80, -0.11, -0.16%) rejected an $18.5 billion acquisition offer from Sanofi-Aventis (SNY 28.84, +0.21, +0.74%). Read about Genzyme's spurned bid.
The S&P 500 Index (SPX 1,049, -15.67, -1.47%) declined 15.67 points, or 1.5%, to end at 1,048.92, with financials leading losses that included all 10 of the index's industry groups, with regional banks KeyCorp (KEY 7.27, -0.02, -0.27%) and First Horizon National Corp. (FHN 9.89, -0.02, -0.20%) both down around 4%.
The broad-market average is down 4.8% for August so far.
The Nasdaq Composite Index (COMP 2,120, -33.66, -1.56%) shed 33.66 points, or 1.6%, to 2,119.97.
The technology-heavy index has fallen 6% in the month so far.
For every stock on the rise, nearly four fell on the New York Stock Exchange, where 818 million shares traded.
Earlier Monday, the Commerce Department reported that personal spending climbed 0.4% in July, the largest rise in four months, while personal income gained 0.2% on the month. Read more about the latest economic data.
On Friday, the government will release figures on nonfarm payrolls and the jobless rate for August. See more in MarketWatch's Economic Preview.
On the New York Mercantile Exchange, crude-oil futures fell 47 cents to $74.7 a barrel, while gold futures gained $1.3 to end at $1,239.20 an ounce.
Kate Gibson is a reporter for MarketWatch, based in New York.
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