According to reports, the EU will require a one-time tax of 6.75% on bank deposits of less than 100,000 euros, and 9.9% tax for those over 100,000 euros, a move many are dubbing "legalized bank robbery." A vote on this bailout, originally scheduled sometime Monday, is said to have been pushed back, with debate continuing on the terms of the deal. By day's end, the Parliament had put off the vote for at least another day say its banks would remain closed through Thursday.
First Fear Then Calm
While the news caused some initial panic in the markets -- the Dow shed 100 points at opening bell -- fears of the potential fallout from Cypriot bailout request retreated as trading progressed. In a note, analysts at Barclays Capital commented that given the small size of Cyprus' economy it is unlikely that financial contagion will spread through the euro zone. The Cypriot economy makes up less than 0.5% of the euro zone's output. "We consider the likelihood of a bank run in other periphery countries to be limited, including in Greece," the analysts wrote in the report.
Stateside, the NAHB Housing Market Index, a gauge of home builder's confidence, registered a reading of 44, which was down from the prior month's reading of 46. Today's reading also missed the Briefing.com consensus which anticipated a 48. The 44 reading was the lowest since October.
Commodities finished mixed. Oil futures added 0.26% to close at $93.69 a barrel, while gold futures closed up 0.75% at $1,604.60 per ounce.
Here's Where The Markets Stood At Day's End
- Dow Jones Industrial Average down 62.05 (-0.43%) to 14,452.06
- S&P 500 down 8.60 (-0.55%) to 1,552.10
- Nasdaq Composite Index down 11.48 (-0.35%) to 3,237.59
- Nikkei 225 Index down 2.71%
- Hang Seng Index down 2.00%
- Shanghai China Composite Index down 1.69%
- FTSE 100 Index down 0.55%
- DAX down 1.03%
- CAC 40 down 0.96%
- (+) WILC, Climbed to a 52-week high of $6.90 after the company announced that Q4 sales increased 29.6% to US $20.5 million from Q4 2011. EPS share for Q4 were $0.18 compared to EPS of $0.06 in Q4 2011.
- (+) JCP, Beaten down shares of discount retailer fly off the shelf after Oppenheimer said its store tours over the weekend suggested customers look to be reacting positively to the Joe Fresh launch on Friday, according to MarketWatch.
- (+) FU, Stock jumps after company reports revenues of $24.0 million, up from $879,912 in the fourth quarter of 2011, with net income of $2,274,415 or $0.11 per share versus a net loss of$7.8 mln or $1.03 per share in 2011.
- (-) ADVS, Software firm shares fall after the company says it completed its review of strategic alternatives. The company's board of directors said that it believes "it is in the best interests of the company and its shareholders to continue to execute on its strategic plan as an independent company."
- (-) INCY, Shares are under pressure after the company was informed, last week, of a case of progressive multifocal leukoencephalopathy in a 75 year old male patient from the UK with myelofibrosis treated with the company's ruxolitinib.
- (-) ENTR, Selling takes hold after company says it expects Q1 revenue between $74 mln to $76 mln,below its prior view of $79 mln to $81 mln and south of the Street view of $80 mln.
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