- Obama urges governors to push Congress to prevent harsh spending cuts
- America's worst oil spill disaster heads to trial
- US Treasury yields hit lowest level in a month

Dow Jones Industrials: -1.55%
Nasdaq: -1.44%
S&P 500: -1.83%

US equities plunged Monday as lawmakers came no closer to a deal to avoid automatic spending cuts due from Friday.

President Barack Obama called on governors to push Congress to reach an agreement to prevent harsh across-the-board reductions, known as sequestration, in this fiscal year. He said the solution involved a "little bit of compromise".

Programs including defence, education and public health will be affected by the cuts should the government fail to find a way to cushion the blow before the end of the week.

"These impacts will not be all felt on day one, but rest assured the uncertainty is already having an effect," Obama told the governors at the White House during their annual meeting, according to Bloomberg.

"While you are in town I hope that you speak with your congressional delegation and remind them in no uncertain terms exactly what is at stake."

The sequestration would shrink federal spending by $85bn for fiscal 2013, which ends September 30th, and total $1.2trn over nine years, out of an annual federal budget of about $4.0trn.

On the company front, BP started the first day of its trial Monday in New Orleans over the 2010 Deepwater Horizon explosion and oil spill that caused one of the worst US environmental disasters.

The company was accused of putting profits before safety by the lawyer for the plaintiffs' steering committee which represents thousands of businesses and individuals.

BP could be hit with the biggest civil fine in history of up to $17.6bn. The trial will determine the causes of the spill, who was responsible and how much oil was actually leaked.

BP and other firms associated with the spill are going head to head against the Department of Justice and the US and Gulf states that were affected by the spill.

"Production over protection. Profits over safety," Jim Roy said.

BP has said it was willing to settle on "reasonable terms" but would fiercely refute claims of gross negligence, calling it a "tragic accident".

Amgen shares rose after a rival drug for the treatment of anemia was taken off the market because of severe allergic reactions and deaths in some patients.

Morgan Stanley plunged following reports a former broker for the company revived his case against the firm on claims of intentionally hiding relevant and indispensable information and malicious abuse of process.

Expedia dropped after Frontier Airlines said it was pulling its flights and fares off the company's online travel booking site.

Front month West Texas crude futures were falling by 1.085 to the $92.130/barrel mark on the NYMEX.

10 year US Treasury yields fell 9 basis points to 1.88%, the lowest level in about a month.


S&P 500 - Risers
Amgen Inc. (AMGN) $89.55 +3.14%
Staples Inc. (SPLS) $13.54 +2.03%
Total System Services Inc. (TSS) $23.16 +1.27%
Perrigo Company (PRGO) $114.60 +1.14%
McDonald's Corp. (MCD) $96.14 +0.93%
Verizon Communications Inc. (VZ) $45.72 +0.70%
Newmont Mining Corp. (NEM) $40.96 +0.34%
Safeway Inc. (SWY) $22.76 +0.31%
Sealed Air Corp. (SEE) $21.08 +0.29%
Time Warner Cable Inc. (TWC) $86.61 +0.25%

S&P 500 - Fallers
F5 Networks Inc. (FFIV) $93.90 -7.08%
Chesapeake Energy Corp. (CHK) $19.11 -6.78%
Morgan Stanley (MS) $22.03 -6.57%
Alpha Natural Res (ANR) $8.15 -6.00%
Genworth Financial Inc. (GNW) $8.33 -5.56%
Eastman Chemical Co. (EMN) $68.00 -5.15%
Ensco Plc. (ESV) $58.35 -5.11%
Marathon Oil Corp. (MRO) $32.94 -5.10%
Peabody Energy Corp. (BTU) $21.55 -4.98%
Leucadia National Corp. (LUK) $26.76 -4.97%

Dow Jones I.A - Risers
McDonald's Corp. (MCD) $96.14 +0.93%
Verizon Communications Inc. (VZ) $45.72 +0.70%
Wal-Mart Stores Inc. (WMT) $70.44 +0.06%

Dow Jones I.A - Fallers
Bank of America Corp. (BAC) $11.03 -3.58%
Caterpillar Inc. (CAT) $89.16 -2.60%
Alcoa Inc. (AA) $8.42 -2.55%
Home Depot Inc. (HD) $63.92 -2.53%
General Electric Co. (GE) $22.81 -2.48%
JP Morgan Chase & Co. (JPM) $47.70 -2.47%
United Technologies Corp. (UTX) $88.37 -2.34%
Travelers Company Inc. (TRV) $79.25 -2.17%
Unitedhealth Group Inc. (UNH) $53.30 -2.15%
Boeing Co. (BA) $75.03 -2.13%

Nasdaq 100 - Risers
Amgen Inc. (AMGN) $89.55 +3.14%
Staples Inc. (SPLS) $13.54 +2.03%
Perrigo Company (PRGO) $114.60 +1.14%
Randgold Resources Ltd. Ads (GOLD) $82.64 +0.94%
Catamaran Corp (CTRX) $54.95 +0.55%
Facebook Inc. (FB) $27.27 +0.52%
Liberty Global Inc. Series A (LBTYA) $65.17 +0.48%
Virgin Media Inc. (VMED) $44.80 +0.29%
Sba Communications Corp. (SBAC) $70.13 +0.19%
Akamai Technologies Inc. (AKAM) $36.31 +0.11%

Nasdaq 100 - Fallers
F5 Networks Inc. (FFIV) $93.90 -7.08%
Expedia Inc. (EXPE) $62.14 -3.64%
Starz Class A (STRZA) $18.59 -3.58%
Autodesk Inc. (ADSK) $36.62 -3.40%
Avago Technologies Ltd. (AVGO) $32.95 -3.34%
KLA-Tencor Corp. (KLAC) $53.02 -3.21%
Seagate Technology Plc (STX) $30.84 -3.14%
Viacom Inc. Class B (VIAB) $57.31 -2.90%
Ross Stores Inc. (ROST) $56.56 -2.75%
Celgene Corp. (CELG) $99.01 -2.60%

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