Dow Jones To Head Lower on China (DJIA, AIG, BP, ZNGA, AEZS, KERX, LCC, MCP, YHOO)

Stocks Weak On China Outlook (DJIA, AIG, BP, ZNGA, AEZS, KERX, LCC, MCP, YHOO)U.S. stocks edged down on Monday as China trimmed its growth forecast to an eight-year low and European private sector activity contracted during the recent month. However, stocks made an attempt to came off session lows following an unexpected rise in the ISM service-sector index for the month of February.Earlier today, Chinese Premier Wen Jiabao decided to cut the growth forecast by 50 bps to 7.50% in 2012, which were last seen 2004.In Europe, The final Composite Output Index slid to 49.3 in February, below the earlier flash estimate of 49.7 from 50.4 in January.The Dow Jones Industrial Average slid 61 points to 12,915. S&P 500 Index dropped 6.40 points to 1,363, while Nasdaq 100 futures lost 15 points to 2,960.In the local news, The Institute for Supply Management reported that nonmanufacturing index surged to 57.3% from 56.8% in January, surpassing economists’ estimates of 55.5% as New orders grew to 61.2% from 59.4%.This week is going to be very critical as key data is supposed to set the tone of the global markets with results from Greek debt swap deal is very critical. Also in focus would be orders data, the consumer credit report and the revised fourth quarter non-farm productivity and costs statistics.Stocks In Focus:BP plc (ADR)(NYSE:BP) shares are up about 1% after the company finally reached a settlement agreement for $7.8 billion with individuals and companies affected by the Gulf of Mexico oil spill.American International Group, Inc.(NYSE:AIG) is one of the notable gainers and climbed 3.52% to $30.85 after insurer decided to divest part of its holdings in AIA Group Limited, which is expected to provide inflows of around $6 billion. These funds are expected to use to pay back the U.S. government for its bailout.Zynga Inc(NASDAQ:ZNGA) shares are falling this morning, wiping out some of its recent gains as analyst at JPMorgan believe that the stock is fairly valued even considering news game launches and there is very limited upside going forward soon. Shares of ZNGA are down 5.11% to $13.94 after rising about 14% in the past week.Shares of two biotech firms - AEterna Zentaris Inc. (USA)(NASDAQ:AEZS) and  Keryx Biopharmaceuticals(NASDAQ:KERX) are surging after an analyst Jeremy Richards is bullish on the company’s pending results for Phase 3 clinical information, which is due after two weeks. Shares of KERX are up over 20% and AEZS rose 16%.US Airways Group, Inc.(NYSE:LCC) slid 7.60% in the morning session after the company said mainline passenger load factor rose 1.5% to 78.3% for the month of February.Molycorp, Inc.(NYSE:MCP) added 3.26% on positive comments from Morgan Stanley, which expects prices of rare-earth to bottomed following a 25% fall year to date. Justifying its comments, the firm said that Yttrium prices rose in February, which could give a boost to rare-earth prices. The firm has a price target of $81 on the stock.Yahoo! Inc.(NASDAQ:YHOO) is trading with modest gains on reports that the company is working on several restructuring, including layoffs likely to number in the thousands.