Halftime Report 6.4.2012

Stocks opened flat to positive after some positive information out of Europe for a “master plan” from their central banks but quickly fell as the Commerce Department reported that manufacturing goods fell in April and once again, disappointed with respect to analyst predictions.

Industrials, materials, and financial stocks continue to underperform significantly as firms with the most international exposure have been hit the hardest in recent weeks.

Lightening the mood were reports that Germany is signaling that it would eventually be willing to lift its objections to ideas such as common euro-zone bonds or mutual support for European banks. In addition, Portugal said it would inject €6.65 billion, or $8.27 billion, into three of its largest lenders to help strengthen the banking sector.

Despite its large online following, not investor wants to be “friends” with Facebook (FB) as its stock price fell -3.1% following reports that Bernstein analysts announced a $25 target price and an “underperforming” rating. Separately, Facebook is rumored to be developing technology to allow young children to use the site. Currently, children under 13, per age restrictions on the internet, cannot join Facebook but with their new development, Facebook hopes to keep a safe environment for children with parent friendly settings. Auxilium Pharmaceuticals (AUXL) jumped 9.61% after the company announced positive test results from a trial of its treatment for Peyronie’s disease.

In deal news, Vanguard Natural Resources (VNR) fell 1.2% after the company said it had agreed to buy natural-gas and liquids assets from Antero Resources for $445 million.

Crude-oil futures rose 0.1% to $83.32 a barrel, while gold futures declined 0.3% to $1,616 a troy ounce. The U.S. dollar slipped against the euro but rose versus the yen. The yield on the benchmark 10-year U.S. Treasury note rose to 1.506%.

Thomas Doherty is a student at Villanova University majoring in Finance and Economics. All questions and comments can be sent to Thomas@KeeneOnTheMarket.com