YAHOO [BRIEFING.COM]: Markets closed lower for a third consecutive session after disappointing data out of China and Japan along with a rise of Spanish yields weighed. A tamer than expected 2.2% YoY Chinese CPI reading and a 14.8% MoM plunge in Japan’s core machinery orders pushed Asian markets lower, and that weakness spread into Europe as Spain’s 10-yr climbed back above 7.00%. All three of the major averages finished in the red with as the Dow paced the decline with a loss of 0.3%.

Shares of Alcoa (AA 8.76, +0.03) were in focus today with the company set to kick off the second quarter earnings season after today’s closing bell. The Capital IQ Consensus Estimate is calling for earnings per share of $0.06 on revenues of $5.82 billion. The key earnings release this week will be Friday’s J.P. Morgan Chase & Co. (JPM 33.96, +0.06) results which will show investors just how big of an impact the ‘London Whale’ trade had on the quarter.

Barclays (BCS 10.23, -0.04) fell 0.4% and closed lower for the sixth time in seven sessions as the fallout from the recent allegations the company attempted to manipulate the British Bankers’ Association’s LIBOR rate continued. The stock is now down close to 17% since the news broke following its June 27 close.

Amerigroup (AGP 88.79, +24.45) surged 38% following word that Wellpoint (WLP 61.95, +2.04) was acquiring the company for $92.00 per share in cash, or $4.9 billion. Upon completion of the deal, Wellpoint will serve more than four-and-a-half million beneficiaries of state sponsored health care programs. Another acquisition saw Campbell Soup (CPB 32.72, -0.27) purchase Bolthouse Farms for $1.55 billion in cash.

Payment processors Visa (V 123.65, -1.63) and MasterCard (MA 431.27, -10.36) lost 1.3% and 2.4% respectively after UBS downgrade the stocks to sell, noting shares were near all-time highs despite exposure to a weakening consumer backdrop.

A solid bid in Treasuries dropped the 10-yr yield more than three basis points to 1.513%. Today’s buying flattened the yield curve as the 2-10-yr spread narrowed to 125 basis points. Meanwhile, light selling dropped the Dollar Index to the 83.15 level. Both the euro and the pound saw small gains ending the day near 1.2315 and 1.5530 respectively.

A weaker dollar gave a boost to crude oil in today's pit trade. The energy component briefly touched a session low of $84.25 per barrel in negative territory but quickly turned around and climbed higher. It rose to a session high of $86.53 per barrel but pulled-back moments before pit close on headlines suggesting that Iran could close the Strait of Hormuz if "denied access to Persian Gulf." Crude still managed to book a gain of 1.8% as it settled at $85.92 per barrel.

Natural gas spent its entire floor session in the black. It pushed to a session high of $2.90 per MMBtu in afternoon action and settled just below that level at $2.88 per MMBtu for a gain of 3.6%.

Precious metals also had upward momentum during their floor sessions as the dollar declined. Gold came off its session low of $1581.20 per ounce and traded up as high as $1590.00 per ounce before it closed at $1588.90 per ounce, or 0.6% higher. Silver advanced to a session high of $27.45 per ounce and settled just below that level for a 1.7% gain at $27.43 per ounce.

Grains also posted solid results today as dry weather and heat create additional stress on the U.S. corn crop. Dec corn rose 37 cents to $7.29/bushel, Sept wheat rose 22 cents to $8.29/bushel, and Nov soybeans rose 41 cents to $15.47

There is no data tomorrow. Treasury will auction $32 billion 3-yr notes.DJ30 -36.18 NASDAQ -5.56 SP500 -2.22 NASDAQ Adv/Vol/Dec 1049/1.39 bln/1699 NYSE Adv/Vol/Dec 1344/649.7 mln/1699