Stocks: Monday's review
Japanese stocks fell the most in more than a week ahead of a vote in Greece’s parliament that may forestall a European banking crisis and before a report expected to show slowing growth in U.S. consumer spending, dimming the outlook for export earnings.
Japanese shares have also declined on signs the U.S. economic recovery is slowing and amid a debt crisis in Greece that the International Monetary Fund said may “spill over,” hurting banks in the region that hold the country’s bonds.
Sony Corp. (6758) which sells about 20 percent of its PlayStation game consoles and other products in Europe, dropped 2.1 percent.
Toyota Motor Corp. (7203), the world’s biggest carmaker by sales, fell 2.3 percent.
Mitsubishi UFJ Financial Group Inc. (8306), the country’s biggest lender by market value, erased losses after Goldman Sachs Group Inc. said capital requirement rules agreed to by international regulators are “positive” for Japan’s lenders.
Mitsui & Co., Japan’s second-largest trading company, dropped 1.1 percent to 1,346 yen.
Among stocks that rose, Tokyo Electric Power Co., operator of the crippled Fukushima Dai-Ichi power plant, climbed 2.6 percent to 316 yen. The Yomiuri newspaper reported the utility may sell two units as part of restructuring plans.
Nakabayashi Co., a maker of office equipment, soared by its upper daily limit of 29 percent to 221 yen, the biggest gain since at least June 1981.
European stocks closed little changed as Greek lawmakers debated austerity measures needed to secure more aid and stave off default.
Northumbrian Water Group Plc (NWG) soared 8 percent after Cheung Kong Infrastructure Holdings Ltd. said it may make a takeover offer for the U.K. utility.
United Utilities Plc, a rival U.K. water company, climbed 3.3 percent to 587.5 pence.
Niscayah AB jumped to a three-year high after agreeing to be bought by Stanley Black & Decker Inc. Niscayah jumped 16 percent to 18.20 kronor after Stanley Black & Decker agreed to buy the Swedish company for about $1.2 billion to secure expansion in the market for electronic security systems.
Securitas AB (SECUB), which last month offered to acquire Niscayah through a share swap, advanced 1.8 percent to 62 kronor.
Akzo Nobel NV (AKZA) sank the most in 16 months after the world’s biggest paint maker forecast a drop in profit.
Danske Bank lost 5.2 percent to 88.60 kroner, Jyske Bank A/S retreated 3.1 percent to 191.5 kroner and Sydbank A/S fell 2.4 percent to 110 kroner.
Cable & Wireless Communications Plc (CWC) surged 5.3 percent to 39.52 pence. Chief Executive Officer Tony Rice bought 2.5 million shares in the phone company at 37.63 pence apiece before an investor day on July 1.
Stocks started off the week with solid gains, as strength in the technology sector boosted all three major indexes.
Adding to the tech sector's strength, Amazon (AMZN, Fortune 500) shares rose 4.5% after Morgan Stanley issued a bullish report on the company and added the tech giant to its "Best Ideas" list.
Companies: Microsoft (MSFT, Fortune 500) shares surged after the software maker announced a licensing deal, under which military contractor General Dynamics will pay royalties for developing products using Android software.
General Dynamics' Itronix division makes rugged tablets and mobile devices using Android. And although Google (GOOG, Fortune 500) owns that software -- Microsoft has already sued several companies using Android, claiming it infringes on their patents.
Citigroup (C, Fortune 500) said 3,400 of the customers who were hacked in its recent data breach suffered about $2.7 million in losses. The news came after the company said last week it discovered that more than 360,000 accounts had been hacked.
Shares of Chinese company LDK Solar (LDK) surged 4.8%, after the company said it plans to buy back $110 million of its American depositary shares.
Appliance maker Stanley Black & Decker (SWK, Fortune 500) made a $1.2 billion offer to buy Swedish information technology company Niscayah Group. Shares of Stanley Black & Decker rose 0.3%.
Nike (NKE, Fortune 500) shares surged about 4% after the bell, following an earnings report that surpassed Wall Street forecasts. The athletic apparel maker said it earned $1.24 per share in its fiscal fourth quarter, crushing analyst estimates for earnings of $1.16 per share.
Nike's revenue rose 10% to $20.9 billion during the quarter.
Economy: Personal income rose 0.3% in May, the Commerce Department reported Monday. That was slightly lower than the 0.4% economists had forecast, and follows a 0.4% rise in April.
Spending was unchanged in May, after ticking up 0.4% in the previous month. Economists surveyed by Briefing.com were looking for spending to have edged up 0.1% last month.