Markets Mixed As Oil Continues To Drop
U.S. markets were mixed to start the week as the price of crude oil traded at levels it hasn't seen in more than two years following Saudi Arabia's announcement it will cut the selling price of oil to the U.S. and raise prices for other locations.
Economic data released today showed manufacturing activity rose to its best reading since March 2011 while separate data showed construction spending dipped in September.
Looking forward to Tuesday, Alibaba (NYSE: BABA) will report earnings for the first time as a public company. International trade data will be released at 8:30 a.m. ET with factory orders to follow at 10:00 a.m. ET.
- The Dow lost 0.14 percent, closing at 17,366.24.
- The S&P 500 lost 0.01 percent, closing at 2,017.81.
- The Nasdaq gained 0.18 percent, closing at 4,638.91.
- Gold lost 0.44 percent, trading at $1,166.50 an ounce.
- Oil lost 2.59 percent, trading at $78.34 a barrel.
- Silver gained 0.20 percent, trading at $16.19 an ounce.
News Of Note
- October Gallop U.S. Consumer Spending rose to $89 from $87 in September.
- October ISM Manufacturing Index rose to 59.0 from 56.6 in September.
- September Construction Spending fell 0.4 percent month over month to $950.9 billion.
- Eurozone manufacturing PMI rose to 50.6 in October from 50.3 in September.
- China's HSBC manufacturing PMI rose to 50.4 in October from 50.2 in September.
Top Equities-Specific News
Sysco (NYSE: SYY) reported its first quarter results this morning. The company earned $0.52 per share, beating the consensus estimate of $0.51. Revenue of $12.45 billion beat the consensus estimate of $12.35 billion. Shares lost 2.78 percent, closing at $37.47.
Analysts at Credit Suisse maintained a Neutral rating on Exxon Mobil (NYSE: XOM) with a price target raised to $100 from a previous $95. Analysts at JPMorgan maintained a Neutral rating with a price target lowered to $98 from a previous $101. Shares lost 1.50 percent, closing at $95.26.
Analysts at Morgan Stanley initiated coverage of Facebook (NASDAQ: FB) with an Overweight rating and $90 price target. Shares lost 1.48 percent, closing at $73.88.
Analysts at Raymond James downgraded Home Depot (NYSE: HD) to Market Perform from Outperform. Shares lost 1.47 percent, closing at $96.09.
Analysts at Morgan Stanley initiated coverage of Twitter (NYSE: TWTR) with an Equal-Weight rating and $42 price target. Shares lost 3.04 percent, closing at $40.21.
The Wall Street Journal reported Apple (NASDAQ: AAPL) is considering a bond sale in a currency other than dollars. A euro-denominated offering is expected as early as Tuesday. Shares hit new 52-week highs of $109.90 before closing the day at $109.40, up 1.30 percent.
LabCorp (NYSE: LH) has agreed to acquire Covance (NYSE: CVD) for $5.6 billion in cash and stock. Shares of LabCorp lost 7.37 percent, closing at $101.23 while shares of Covance surged 25.87 percent, closing at $100.57.
France-based Publicis Groupe (OTC: PUBGY) has agreed to acquire Sapient (NASDAQ: SAPE) for $3.7 billion, or $25 per share. Shares of Sapient surged to new 52-week highs of $24.73 before closing the day at $24.60, up 42.03 percent.
RCS Capital (NYSE: RCAP) said that it will no longer pursue its $700-million acquisition of Cole Capital Advisors from American Realty Capital (NASDAQ: ARCP). Shares of RCS Capital hit new 52-week lows of $13.55 before closing the day at $13.69, down 16.58 percent. Shares of American Realty Capital also hit new 52-week lows of $7.38 before closing the day at $7.85, down 11.50 percent.
Allergan (NYSE: AGN) confirmed that it was approached by Actavis (NYSE: ACT) over a potential acquisition and stated that “premature disclosure with respect to the possible terms of any transaction might jeopardize continuation of any discussions or negotiations. Shares of Allergan hit new 52-week highs of $193.63 before closing the day at $193.14, up 1.62 percent while shares of Actavis gained 1.96 percent, closing at $247.50.
Ford (NYSE: F) sold 188,654 vehicles in the U.S. throughout October, a decrease of 2 percent from a year ago. Shares lost 0.71 percent, closing at $13.99.
General Motors (NYSE: GM) sold 226,819 vehicles in the U.S. throughout October, a 0.2 percent increase from a year ago. Shares lost 0.70 percent, closing at $31.18.
Quote Of The Day
“Although Wall Street analysts were soured by [Elon Musk's] Los Angeles presentation of the Dual Motor Tesla Model S P85D and the mysteriously tweeted "something else" (Musk's personal wealth dropped $500 million by the next morning), all we can say is that the Wall Street suits haven't ridden in the Model S P85D. And best they don't if they want to keep their Brooks Brothers slacks dry, because we've just tested it, and as insane goes, it makes Charlie Manson look like Charlie Rose.” – MotorTrend reviewing Tesla's Model S P85D.
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