U.S stocks gapped down on Monday with all the major indices plunged between 1.80%-2.50% in the opening session as sovereign bond yields skyrocketed amid renewed fears about the future of the euro zone and worries over debt problems in Spain’s regions and Greece. More panic was created when trading in major Italian banks was suspended for about an hour during the morning after their shares incurred steep drops, while authorities in Spain and Italy imposed ban on short selling to stem market volatility.
The shares of Apple Inc.(NASDAQ:AAPL) gapped down this morning and slumped over 1.92% to $592.72 as the broader markets were hammered down with the DOW plunged over 200 points. Moreover, investors are awaiting APPL’s third quarter earnings on Tuesday after market hours. The stock could remain highly volatile until it reports its earnings. On an average analysts are estimating the company to report $10.35 a share, compared to a year ago profit of $7.79 with revenue is projected to grow by 30.30% to $37.23 billion, from $28.57 billion a year ago quarter. An analyst at Pacific Crest Securities in Portland predicts that the company may sell about 25.4 million iPhones, he estimates, compared with 35.1 million in the previous quarter. “It’s going to be bad now, but great later.”
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Deckers Outdoor Corp(NASDAQ:DECK) plunged 6.50% to $43.71 in the opening session as analyst at Sterne Agee downgraded the stock to Underperform . The firm, which had upgraded Deckers in April on valuation grounds, is lowering its target for the shoemaker to $38 from $60. Deckers delivers its Q2 report on Thursday.
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Nokia Corporation (ADR)(NYSE:NOK) also lost 1% as Moody's downgrades Nokia's debt rating to Ba3 from Ba1 with a negative outlook, saying its "transition in the smartphone business will cause deeper operating losses...than we had previously assumed." The cut follows Fitch downgrading Nokia to to BB- from BB+ last week. The company says that Moody's action would have a limited effect and that its cash balance remains strong.
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