A Greek Curveball (PFE, BHI, ADM, ICLK, YHOO, EDV, ASIA)

Stocks took it on the chin for a second day as Greece’s prime minister surprisingly said he’d let the Greek people vote on whether to accept the EU rescue package and subsequent austerity measures. If the vote goes through and the bailout is rejected, it would likely lead to a Greek default and possibly the exit of Greece from the European Union. Some Greek lawmakers, however, were unhappy with the decision, and the voting referendum could be squashed if the Greek government loses a confidence vote this Friday that could cost Prime Minister George Papandreou his job. Europe continues to remain a risk, and today’s news was certainly an unexpected curveball. We’ve been cautiously optimistic, but today’s news leaves us a bit more cautious than before.

The Bond ETFs Index was the top performing tickerspy Index on the day, led by Vanguard Extended Duration ETF (EDV) with a 5% gain. The Chinese IT Stocks Index was the day’s worst performing tickerspy Index, with Asiainfo-Linkage (ASIA) down -22%.

Stocks slumped on the day, as the Dow fell -296 points to close at 11,659. The S&P tumbled -35 points to 1,218, while the Nasdaq plunged -77 points to 2,607. Oil slipped -$1.00 to $92.19 a barrel, while gold dropped -$13.40 to $1,711.80 an ounce.

In economic news, the Institute for Supply Management’s factory index dropped to 50.8 in October from 51.6 in September. Economists had expected an October reading of 52.0. Readings above 50 indicate expansion.

Dow component Pfizer (PFE), the world’s largest drugmaker, raised its full-year 2011 profit forecast and said its 2012 profit will be little changed. Pfizer reported a third-quarter profit of $3.74 billion, or 48 cents per share, compared with $866 million, or 11 cents per share, a year earlier. Excluding one-time items, Pfizer earned 62 cents. Revenue rose 7% to $17.19 billion. Analysts had expected a profit of 56 cents on revenue of $16.42 billion. Pfizer forecast a full-year 2011 profit of $2.24-$2.29 per share up from previous guidance of $2.16-$2.26 a share. The company forecast a 2012 profit of $2.25-$2.35 a share. Shares of Pfizer rose 0.4%. Nearly 400 pros held Pfizer in their portfolios at the end of Q3 and more than 3,100 tickerspy members own the stock in their portfolios.

Shares of oil services provider Baker Hughes (BHI) plunged -7.7% despite the company saying its third-quarter profit nearly tripled. Texas-based Baker Hughes reported a profit of $706 million, or $1.61 per share, compared with $255 million, or 59 cents per share, a year earlier. On an adjusted basis, the company earned $1.18 a share. Revenue surged 27% to a record $5.18 billion. Analysts had expected a profit $1.21 per share on $5.18 billion in revenue. More than 60 pros held Baker Hughes in their portfolios at the end of Q3 and more than 400 tickerspy members own the stock in their portfolios.

Shares of Archer Daniels Midland (ADM), the world’s largest grain processor, slid -4.2% after the company’s third-quarter profit missed estimates. The company said its third-quarter net income jumped 33% to $460 million, or 68 cents a share, from $345 million, or 54 cents, a year earlier. On an adjusted basis, ADM earned 58 cents a share, missing the 66-cent analyst consensus. Sales increased to $21.9 billion from $16.8 billion a year earlier.

Shares of interclick (ICLK) soared 20.8% after Yahoo (YHOO) agreed to acquire the company for $270 million. Yahoo will pay $9 a share for New York-based interclick, a 22% premium to where the shares closed on Monday. Yahoo, itself believed to be a takeover candidate, fell -4.5%.

Tags: ADM, ASIA, BHI, EDV, ICLK, PFE, YHOO