Spain Protest Tires FireSpanish miners burn tires to block a road during a miner’s demonstration today in northern Spain.

Photo: Blazquez Dominguez/Getty Images

The rally this morning was wiped out as the market trended sharply into negative territory.First the scoreboard:

Dow:  12,411.2, -1.1%

S&P 500: 1308.9, -1.3%

NASDAQ: 2809.7, -1.7%

And now the top stories:

  • India was threatened by a possible downgrade to junk by Standard and Poor’s this morning, making it the first BRIC nation to lose its investment grade status. In April, the ratings agency lowered its outlook on the country to negative from stable on slowing GDP growth and political hurdles.
  • Diamond Foods did not meet a deadline to restate past quarterly results and file delayed 2012 performance today, resulting in its possible delisting from the Nasdaq. The owner of Pop Secret popcorn and Kettle Brand potato chips said it expects to receive a delisting determination letter from the exchange, which could lead to its expulsion from the exchange. Click here to read all about the rise and fall of Diamond >
  • The euro briefly traded below $1.25 per U.S. dollar, erasing gains the currency had made after falling tumultuously earlier in the month. At 4:00 p.m. the euro traded at $1.2497.
  • Fitch Ratings downgraded Spain’s two largest banks, Santander and BBVA, to BBB+ from A, following the downgrade of the country’s long-term credit rating last week to BBB. Fitch kept both banks above Spain’s rating because of “geographical diversification, strong financial performance and a proven capacity to absorb credit shocks. However, the agency believes that there is a close link between bank and sovereign credit risk.”
  • Italy and Spain both sold off after strong morning rallies, suggesting that investors are concerned with parts of the Spanish bailout. Particularly, yields rocked higher in both countries on fears that the European bailout funds could subordinate other holders of sovereign debt. Here’s why everyone is freaking out that the Spanish bailout won’t work >
  • Apple revealed a number of new products and upgrades at its World Wide Developers Conference in San Francisco. The tech giant revamped its lineup of laptops, launched Maps for iOS, and added sports to Siri. Shares in Apple, which were up for most of the day, ended down more than 1 per cent. During its announcement, fellow tech companies Facebook and OpenTable got a boost, when Apple revealed new integration with their products.  
  • Late in the afternoon, the U.S. said it would offer seven countries exemptions from Iranian oil sanctions, including India and South Korea. Crude oil futures declined more than $2 to $81.94.

SEE ALSO: The 20 Countries With The Highest Probability Of Default >

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