Mid-Morning Market Update: Markets Tumble; Fiat To Acquire Rest Of Chrysler
Following the market opening Thursday, the Dow traded down 0.68 percent to 16,463.64 while the NASDAQ declined 0.91 percent to 4,138.42. The S&P also fell, dropping 0.69 percent to 1,835.60.
Fiat SpA (OTC: FIATY) announced its plans to buy the rest of the Chrysler Group LLC for $3.65 billion.
Fiat already owns 58.5% stock of Chrysler. Fiat projects the deal to complete on January 20.
Chico's FAS (NYSE: CHS) was also up, gaining 4.09 percent to $19.61 after Jefferies upgraded the stock from Hold to Buy and raised the price target from $17.00 to $23.00.
Intersil (NASDAQ: ISIL) tumbled 4.81 percent to $10.92 after Evercore Partners downgraded the stock from Equal-Weight to Underweight.
Texas Industries (NYSE: TXI) was down, falling 4.36 percent to $65.78 after Longbow Research downgraded the stock from buy to neutral.
In commodity news, oil traded down 1.37 percent to $97.07, while gold traded up 1.73 percent to $1,223.10. Silver traded up 3.69 percent Thursday to $20.09, while copper fell 0.34 percent to $3.39.
European shares were mostly lower today. The Spanish Ibex Index fell 0.76 percent, while Italy's FTSE MIB Index climbed 0.43 percent. Meanwhile, the German DAX dropped 0.64 percent and the French CAC 40 fell 0.99 percent while U.K. shares declined 0.19 percent.
U.S. initial jobless claims fell by 2,000 to 339,000 in the week ended December 28. However, economists were expecting claims to total 344,000 in the week.
The final reading for the manufacturing PMI surged to 55 in December, versus November's reading of 54.7. However, economists were expecting a reading of 54.7.
The ISM manufacturing index fell to 57.00 in December, versus a prior reading of 57.30. However, economists were expecting a reading of 56.80.
The Bloomberg Consumer Comfort Index declined to-28.70 for the week ended December 29, versus a prior reading of -27.40.
U.S. construction spending rose 1.00% in November, versus economists' expectations for a 0.60% gain.
The Treasury is set to auction 3-and 6-month bills. The Treasury will also auction 3-and 10-year notes.
Data on money supply will be released at 4:30 p.m. ET.
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