Stocks Pressured by Indecision on Greek Debt Restructuring

Published on Monday, 30 January 2012 13:05 Written by J Hawk

New York, January 30^th (TradersHuddle.com) - U.S. stocks opened lower this morning as traders and investors grew increasingly concerned over the lack of a viable debt restructuring plan for Greece. European and Asian stock markets were also broadly lower this morning. 

Adding to concerns over Greece were comments by German finance minister Wolfgang Schauble in an interview with the Wall Street Journal. “Greece needs to decide,” Schauble responded when asked whether the EZ would grant or withhold the second bailout package estimated at $172 billion.

Even though Schauble stated that Europe is “prepared to support Greece” with the bailout, he cautioned that, “Unless Greece implements the necessary decisions and doesn’t just announce them…there’s no amount of money that can solve the problem.” Traders will be closely watching today’s EU Economic Summit in Brussels for further developments. 

 The Dow Jones Industrial Average opened 98 points lower or -0.8 percent this morning, paring some of its losses towards midday. The blue chip index was down -80 or -0.63 percent to 12,581 at midday, with the S&P index down -9 or -0.71 percent to 1,307, while the NASDAQ composite shed -11 or -0.37% to 2,806.

U.S. Stocks in the News

Pep Boys (NYSE: PBY) stock was up +2.79 or +23.10 percent to $14.87per share midday, after the 90 year old auto parts chain agreed to be taken private by investment firm The Gores Group for approximately $791 million or $15 per share. Pep Boys announced a 23 percent increase in third quarter net income last month on increased tire and service sales. The company operates more than 700 retail outlets in 35 states and Puerto Rico.  

Gannett Co. (NYSE: GCI) stock was down -1.07 or -7.03 percent midday to $14.20 per share, after the company reported its fourth quarter profit had dropped to $116.9 million, or 49 cents per share, compared to $174.1 million, or 72 cents per share in the same period one year ago. The publisher of USA Today and over 80 other newspapers and magazines also reported a +9.4 percent increase in digital revenue, to $181.5 million, largely attributed to its CareerBuilder website.

Wendy’s Co. (NYSE: WEN) stock was down -0.11 or 2.11 percent to $5.10 per share midday, after the company reported a key measure of earnings had declined by 30 percent in the fourth quarter, after Wendy’s dropped its affiliation with Arby’s. Income from continuing operations dropped to $4.3 million in the fourth quarter, down from $6.1 million for the same period one year ago. The company had originally reported a loss of $10.8 million, last year when it was still combining its results with Arby’s. Despite the lower income figure, revenue for the fourth quarter rose by almost 6 percent.  

GTX Inc. (NASDAQ: GTXI) stock was up +1.49 or +37.8 percent to $5.43 per share midday, after the Memphis, TN based analysts at Citigroup raised Biopharmaceutical Company’s price target. The new price target for GTX was raised to $19 per share. The company specializes in the discovery, development and commercialization of molecular treatments for cancer and other serious medical conditions.

Apple (NASDAQ: AAPL), the maker of iPads and iPhone, was buckling the trend gaining 1.21% to $452.70, trading near its all-time high of $454.45.

And Citigroup (NYSE: C) was falling 2.2% to $30.19 as the financial sector was being hit. Citi was trading lower despite being upgraded to a Buy from Neutral at Goldman Sachs.