Closing Update: Wall Street Extends Losing Streak On Worries Over Earnings, Valuation

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Stocks retreated for a third consecutive day as profit-taking amplified by the outlook for disappointing earnings and overvaluation in tech and momentum stocks drove the S&P 500 below key support at 1,850 and the Nasdaq Composite under its 50-day moving average.

Although there wasn't a definitive catalyst for today's sell-off, weakness in European markets, pressure on retail stocks, and bargain-hunting in U.S. government bonds and utility sector all exacerbated the already defensive tone after Friday's post-jobs freefall.

In corporate news, Ireland's Mallinckrodt ( MNK ) made a $5.6 billion offer for Questcor Pharmaceuticals ( QCOR ), Mannkind ( MNKD ) shares stumbled on news that the FDA was extending the review date for its insulin inhaler by another three months, and cloud-marketing software developer Vocus ( VOCS ) agreed to be acquired by private-equity firm GTCR for $18 per share, a 48% premium over its current price.

Here's where the markets stand at the close:

US MARKETS

Dow Jones Industrial Index was down 166 points (-1%) at 16,245

S&P 500 was down 20 points (-1.1%) at 1,845

Nasdaq Composite Index was down 47 points (-1.2%) at 4,079

GLOBAL SENTIMENT

FTSE 100 was down 1.09%

Nikkei 225 was down 1.69%

Hang Seng Index was down 0.59%

Shanghai China Composite Index was up 0.74%

UPSIDE MOVERS

(+) PXLW David Tupman, ex-Apple ( AAPL ) executive who led development efforts for iPhone and iPod, has been named to the company's board of directors.

(+) VOCS Agrees to be bought by private-equity firm GTCR for $18 per share.

(+) QCOR Mallinckrodt ( MNK ) makes $5.6 billion for Questcor Pharmaceuticals.

(+) AGIO (+27.54%) A study on the company's AG-221 drug candidate to treat blood cancer showed "promising" clinical activity.

DOWNSIDE MOVERS

(-) WWE Despite upbeat subscriber outlook, stock falls on profit-taking.

(-) HYGS, HYG.TO Lowered Q1 revenue forecasts to $7 mln - $7.5 mln from $11.7 mln analyst consensus

(-) MNKD FDA delays approval of insulin inhaler for three months.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: MNK , QCOR , MNKD , VOCS , AAPL

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As of 9/2/2014, 04:15 PM

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