Equities Open Lower Amid European Worries
04-Feb-13 09:45 ET
[BRIEFING.COM] The major averages are trading near their early lows following a downbeat open. The S&P 500 is off by 0.6% with the initial weakness stemming from cautious European trade. Benchmark indices in France, Germany, and the United Kingdom are all down in excess of 1.0%. Meanwhile, Italy's MIB and Spain's IBEX are down 3.0% and 1.8% respectively. Italian stocks are pressured by an ongoing investigation into the country's banks. Elsewhere, Spanish Prime Minister Mariano Rajoy has become entangled in a corruption scandal, which has sparked calls for his resignation from opposition leaders.
Domestically, all ten S&P 500 sectors are trading in the red. Energy, health care, and financials are among the weakest performers in the early going. Meanwhile, utilities and telecoms are outperforming as they register slimmer losses than the broader market.
In acquisition news, Acme Packet (APKT 29.31, +5.38) is surging 22.5% after the networking company was acquired by Oracle (ORCL 35.92, -0.28) for $29.25 per share. The transaction price represents a 22.2% premium to Acme's Friday closing price.
The day's lone economic data point will come in the form of December factory orders. This report will hit the wires at 10:00 ET.