The stock market today opened with all three indexes down at least 1.5%.
After what seemed like a reprieve from having the Eurozone debt crisis control the stock market, the worries have returned.
Nexen Stock Price History
Investors are selling on news that Spain might need more bailouts as its 10-year yield reaches a record high. The main concern is that bailouts will be needed not just for the banks, but for the entire nation and certain regions of the country.
The yield on Spain's 10-year bond reached a record high of 7.56% and the latest unemployment rate sits at a depressing 24.6%.
Another round of earnings is on tap with Apple (Nasdaq: AAPL) and Facebook (Nasdaq: FB) leading the way this week. Apple reports its earnings after tomorrow's (Tuesday) close and Facebook reports after Thursday's session.
Here are some other companies making headlines in the stock market today.
Nexen Inc. (NYSE: NXY) is today's biggest winner – huge news for subscribers of Money Morning expert Martin Hutchinson's Merchant Banker Alert service. Hutchinson, Money Morning's Global Investing Strategist, recommended the stock last November to his readers, and that pick paid off big today.
Nexen is a Calgary-based energy company focusing on oil and gas production. It announced today that it has entered into a definitive agreement with China's CNOOC Ltd. (NSYE ADR: CEO) where CNOOC will acquire Nexen for $27.50 a share.
The all-cash deal is worth over $15.1 billion and is a 61% premium from where NXY closed on Friday, July 20.
Commenting on the acquisition, Mr. Barry Jackson, Chairman of the Board of Nexen, said, "This transaction delivers significant and immediate value to Nexen shareholders. The Nexen Board is unanimous in its view that the transaction is in the best interest of Nexen and recommends shareholders vote in favor of the transaction."
I think the shareholders and anyone that heeded Martin's advice will agree with that statement.
Shares of NXY were up over 52% today and have now gained 67% from where Merchant Banker Alert subscribes received this recommendation.
McDonald's Corp. (NSYE: MCD) posted a decline in earnings and fell short of forecasts as same-store sales fell.
The world's largest restaurant chain reported earnings per share of $1.32, down from $1.35 a year earlier and below analysts' projections of $1.38 a share. Same-store U.S. sales, measured by stores open at least one year, rose 3.6%, the slowest growth in five quarters.
McDonald's was also hurt by the strengthening U.S. dollar as it gets more than 60% of its revenue from outside the U.S. The dollar is at a two-year high versus the euro today, one euro now gets you only $1.21.
Shares of MCD have lost 10% this year and were down 3.25% as of noon.
Halliburton Company (NYSE: HAL) the world's second-largest oilfield services company behind Schlumberger (NYSE: SLB), announced earnings per share of $0.79. That was a penny lower than a year ago but ahead of the expected EPS of $0.75.
Halliburton last month warned that a guar shortage in India would result in lower results this quarter. Guar is a vital component to the fluids used in "fracking" and has been cited to account for 30% of the overall cost of fracking.
Halliburton's revenue rose 23% to $7.23 billion compared to $5.93 billion in the same period last year. The company cited strong overseas numbers but the guar shortage hurt its North American production.
"North American margins came down, as expected, but revenues exceeded expectations and international markets showed strength," Scott Gruber, an analyst with Sanford Bernstein in New York told Reuters.
"North America is still going to be a good market for Halliburton and international will be where the growth comes from," Gruber said, adding that he preferred Schlumberger shares to Halliburton's.
HAL stock was up 1.3% today by noon.
Bottom line: the bull is running overseas. And chances are, you can't afford to miss it.
That's why editor Martin Hutchinson travels the four corners of the globe in search of these hidden gems, before the rest of the world knows they exist. So that as the masses pile in, you can sit back and reap the rewards. For more information about Martin's Merchant Banker trading service, please call 855-509-6600 or 410-622-3004 during business hours (ET).]
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