Stocks drifted between small gains and losses Monday, with the
major indices ending just in positive territory and most investors
reluctant to stake out long positions in defensive trade ahead of
the Federal Open Markets Committee policy-setting meeting later
this week. Early declines were limited somewhat by bullish economic
data and another flurry of deal-making although ongoing unrest in
Iraq and Ukraine and the International Monetary Fund reducing it
outlook for U.S. growth this year also weighed on equities
The IMF today said the U.S. economy will likely grow about 2.0%
this year, down from its earlier forecast for 2.8% growth. It
blamed harsh winter weather and the resulting Q1 slowdown for the
diminished outlook but said recent data suggest "a meaningful
rebound is now underway," later adding "2015 should well exceed
The World Bank last week similarly reduced its outlook for
global and U.S. growth because of the winter downturn this year in
large parts of the country.
Closer to home, the Federal Reserve Bank of New York today
reported a surprise increase in its general business conditions
index, climbing to a 19.28 reading this month from 19.01 in May and
topping the market consensus looking for a decline to 15.0.
Industrial production also rebounded in May, the Fed said today,
with activity at factories, mines and utilities climbing a
seasonally adjusted 0.6% and reversing a 0.3% decline in April.
April production was also revised higher from the 0.6% decline
The National Association of Home Builders/Wells Fargo housing
market index also rose to a 49.0 reading this month from 45.0 in
May, beating estimates for a smaller rise to a 47.0 reading.
Crude oil for July deliver settled $0.01 cent higher at $106.90
per barrel while July natural gas was down $0.03 at $4.71 per 1
million BTU. August gold rose $1.20 to finish at $1.275.30 per
ounce while July silver added 7 cents, settling at $19.72 per
share. July copper climbed 2 cents to finish at $3.05 per
Today's merger and acquisition activity was dominated by
) $42.9 billion offer for Covidien (
) in a combination of medical-device giants. Other deals today
include a $7.3 billion offer for TW Telecom (
) by Level 3 Communications (
) along with Sandisk's (
) bidding $1.1 billion for Fusion-IO (FIO), and Williams Companies
(WMB) looking to acquire a 50% stake of pipeline operator Access
Midstream Partners (ACMP) for $6 billion.
Here's where the U.S. markets stood at the end-of-day:
Dow Jones Industrial Average up 5.27 (+0.03%) to 16,781.01
S&P 500 up 1.62 (+0.08%) to 1,937.78
Nasdaq Composite Index up 10.45 (+0.24%) to 4,321.11
Hang Seng Index down 0.08%
Shanghai China Composite Index up 0.74%
FTSE 100 Index down 0.34%
UPSIDE MOVERS WMB,ACMP,FIO,SNDK,BLUE,KPTI,DWA,LAYN
(+) WMB, Offers $6 billion to buy Global Infrastructure
Partners' 50% stake in Access Midstream Partners LP (ACMP), along
with 55.1 million limited partner units, increasing its overall
stake in the pipeline company to 50%.
(+) FIO, Agrees to $1.1 billion buyout proposal from SanDisk (
), which is offering $11.25 a share for the data-storage firm.
(+) BLUE, Reports positive results for its LentiGlobin
experimental gene therapy, saying two patients with the
beta-thalassemia blood disorder were able to stop blood
transfusions after one LentiGlobin treatment.
(-) KPTI, FDA Center for Veterinary Medicine offers only
conditional support for the company's Verdinexor drug candidate to
treat canine lymphoma.
(-) DWA, "How to Train Your Dragon 2" sequel sells about $50 mln
in tickets during its opening weekend, trailing estimates for a $65
mln box office.
(-) LAYN, Reports 15.5% decline in fiscal Q1 revenue to $191.2
mln, lagging Street view by $15.4 mln. Net loss widens to $27.7
mln, or $1.41 per share, down from a $23.8 mln loss in the year-ago
period and missing estimates looking for $0.35 loss.
Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.