Market Update: Monday's Mid-Day Movers, China's Stock Market Crash And More
China stocks suffered the sharpest daily decline since 2007. According to The Wall Street Journal, worries arose that authorities are “pulling back on measures to prop up the market.” China worries that government support will slow down, causing heavy selling in China’s stock market.
The Shanghai Composite Index declined 8.5 percent, the worst daily drop since February 27, 2007. China’s main index is down 28 percent since its high in June.
According to the WSJ, analysts specified that investors are fearing that the government would curb its purchases of blue-chip stocks, causing a massive selloff. A rising, strong dollar alongside the expected rise in interest rates have shoved commodities to multi-year lows, causing investors to shift to high-yielding assets.
Turkey and the United States have reached a deal in which Turkey will allow U.S. planes to utilize Turkish bases to attack Islamic State militants to establish a “de facto no-fly zone” in northern Syria, according to WSJ.
Fiat Chrysler Automobiles NV (NYSE: FCAU) was hit with a record fine of $105 million for recall lapses in which cover millions of vehicles.
U.S. energy companies are eyeing to layoffs and more asset sales to cope with the continued struggling of the oil prices. The WTI crude oil index dropped 1 percent down to $47.68.
The Dow Jones Industrial Index was down 0.78 percent, the S&P 500 Index down 0.50 percent, the NASDAQ Composite declined 0.79 percent, and the U.S. Dollar Index was down 0.52 percent on Monday.
Nymox Pharmaceutical Corporation (NASDAQ: NYMX) skyrocketed 110 percent after the Canada-based biopharmaceutical company reported the pivotal Phase III NX-1207 BPH Extension Trial as successfully meeting its primary endpoint. The company plans to file for regulatory approvals for NX-1207, Fexapotide Trifulate.
Magnetek Inc (NASDAQ: MAG) soared 54 percent after it was reported that all of its shares outstanding would be acquired by Columbus McKinnon Corp (NASDAQ: CMCO) for $50 per share, a deal amounting to $188.9 million.
Xueda Education Group (NYSE: XUE) was lifted 50 percent after the holding company struck a $350 million deal amid being delisted from the New York Stock Exchange. The Chinese education holding company is to be acquired by a Tsinghua Unigroup-controlled company listed on the Shenzhen Stock Exchange.
MediciNova Inc (NASDAQ: MNOV) rose 26 percent after the company reported an FDA approval of the Phase II protocol for MN-001, tipelukast, for a NASH indication. The study targets NASH patients with hypertriglyceridemia.
Teva spiked 14 percent after the company agreed to acquire Allergan’s generic drug business for $40.5 billion.
Bellerophon Therapeutics LLC (NASDAQ: BLPH) dwindled 62 percent after the clinical-stage biotherapeutics company’s implantable heart device failed to prevent heart failure in patients in a large study.
Republic Airways Holdings Inc. (NASDAQ: RJET) declined nearly 48 percent after the holding company hinted a warnings for second quarter earnings. The company expects to report earnings of $0.08 to $0.10 per share, below analyst expectations of $0.28 per share.
BioLine RX Ltd (NASDAQ: BLRX) was down 17 percent after the therapeutics company confirmed negative results of its implantable heart disease treatment.
Mylan NV (NASDAQ: MYL) sunk 14 percent after the global pharmaceutical company was dropped in a bid by Teva.
SFX Entertainment Inc (NASDAQ: SFXE) was down 11 percent after it announced the end of “go-shop” period set forth in a previously announced merger agreement.
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