Dow Finishes Down 100+ Points For Second Consecutive Day
For the third consecutive day, stocks continued lower. This time it is on weak European economic data and concerns about increased U.S. involvement in Middle Eastern conflict.
- The Dow Jones Industrial Average fell 117 points, or 0.68 percent, to 17,056.
- The S&P 500 dropped 12 points, or 0.58 percent, to 1,983.
- The Nasdaq Composite sold of 19 points, or 0.42 percent, to close at 4,509.
Alibaba (NYSE: BABA) gave up 3 percent Tuesday, meaning the company has lost value every session since undergoing the world’s largest IPO last week. Shares are down 7.8 percent since they opened.
Legislation on tax inversions have some investors skeptical that many proposed deals will not be completed. Acquisitions most concerning include Medtronic (NYSE: MDT) buying Covidien (NYSE: COV) and Burger King (NYSE: BKW) buying Tim Hortons (NYSE: THI).
Shares of Plug Power (NASDAQ: PLUG) surged 9.6 percent higher after the company announced a new financing deal. CEO Andy Marsh commented that the deal will help the company to reach more than $75 million in revenue during 2014.
Salix Pharmaceuticals (NASDAQ: SLXP) shares shot up 5.8 percent to $169.17 on report of takeover talks with Allergan. Allergan (NYSE: AGN) is set to acquire Salix Pharmaceuticals in a deal probably worth more than $10 billion, according to Dow Jones Newswires.
Shares of Sangamo Biosciences (NASDAQ: SGMO) got a boost, shooting up 5.4 percent to $11.35 after dropping 5.90 percent on Monday. Jefferies initiated coverage on Sangamo BioSciences with a Buy rating and a $22.00 price target.
CarMax (NYSE: KMX) was down, falling 9.5 percent to $47.80 after the company reported downbeat fiscal second-quarter profit.
Energy prices were mostly down Tuesday, with WTI and Brent mixed. At the close of equities, WTI contracts were up 0.62 percent and Brent contracts were down 0.16.
Gold got a significant bounce higher on weakness in equities. Gold futures were last trading 0.43 percent higher to $1,223.10. Silver futures finished the day flat.
Asian markets were mostly down last night. The Shanghai index was up 0.87 percent, but Hong Kong's Hang Seng closed down 0.49 percent and Japan’s Nikkei gave up 0.71 percent.
European markets were sharply lower on weak manufacturing data. The Euro Stoxx index, which tracks 50 eurozone blue chips, sold off 1.6 percent percent. London's FTSE gave up 1.44 percent, and France's CAC led losses with a 1.87 percent decline.
The U.S. dollar was once again stagnant with the U.S. Dollar Index at 84.81. 85 is a major resistance level and has stopped the dollar from making a year high for the past week.
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