By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Valeant jumps on deal news; oil, euro tumble
NEW YORK (MarketWatch) -- U.S. stocks struggled to push higher
on Monday as a drop in oil prices once again hit energy
companies.
A pickup in merger-and-acquisition activity Monday in the
pharmaceutical industry helped push health-care stocks higher.
The S&P 500 (SPX) was weighed down by losses in seven of the
main 10 sectors. Energy, financials and telecoms led the
losses.
The Dow Jones Industrial Average (DJI) retreated from its record
level reached on Friday. About 66% of its 30 member were trading in
the red. Boeing Co was the biggest decliner, while UnitedHealth
Group Inc. led gainers.
The Nasdaq Composite (RIXF) switched between small gains and
losses. Biotechs led the gains, lifted by a deal news.
Need to Know: Nasdaq at 5,000 isn't a pipe dream
(http://www.marketwatch.com/story/knocking-down-nasdaq-5000-as-us-dollar-sentiment-hits-extremes-2015-02-23)
David O'Malley, chief executive officer at Penn Mutual Asset
Management, said geopolitical news lead the market open, but money
flows are pushing them higher in afternoons.
"There is a 180 degree shift in sentiment in all markets. In
January, investors were worried the U.S. will have deflationary
problems, but the Fed eased fears with reassuring to be patient and
data-dependent while money is pouring into equity funds," O'Malley
commented.
Steven Wieting, global chief investment strategist at Citi
Private Bank, said investors are still waiting to see more positive
economic effects of falling oil prices.
"We have seen immediate effects of lower oil prices in reduced
earnings and cuts in capital expenditures by energy companies, but
consumers are not spending their windfall just yet," Wieting
said.
Read: Three things Yellen could say to surprise investors
(http://www.marketwatch.com/story/three-things-yellen-could-say-to-surprise-investors-2015-02-20)
Economic preview: U.S. economy's growth not touching all the
bases
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)
News that eurozone ministers agreed to extend Greece's bailout
for four months
(http://www.wsj.com/articles/eurozone-approves-greece-bailout-extension-1424435121?mod=mktw)
had helped drive late gains for Wall Street on Friday. Still,
Greece must present a list of budget cuts and economic overhauls by
Monday evening for approval from its international creditors.
Also read: Why Germany beat Greece in the battle of the bailout,
in five charts
(http://www.marketwatch.com/story/how-germany-is-walloping-greece-in-the-battle-of-the-bailout-in-5-charts-2015-02-20)
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)Monday
deals: Valeant(VRX) shares surged after it said Sunday that it will
buy Salix
(http://www.marketwatch.com/story/valeant-pharmaceuticals-to-buy-salix-for-about-10-billion-2015-02-22-161035324)(SLXP)
for about $10 billion in cash, which will take it into a
multibillion-dollar market for drugs that treat stomach
disorders.
Bristol-Myers Squibb(BMY) announced on Monday an agreement to
buy privately-held biotechnology company Flexus Biosciences in a
deal that could be valued at up to $1.25 billion.
3M Co.(MMM) said Monday that it has entered into a definitive
agreement to buy Polypore International Inc.'s (PPO) separations
media business for a total purchase price of $1 billion
(http://www.marketwatch.com/story/3m-to-buy-polypore-unit-for-1-billion-2015-02-23).
Polypore shares jumped 12%, while 3M was flat.
Shares in Discovery Communications (DISCA) jumped, making it the
best performer on the S&P 500. Shares rose after news reports
on Sunday that 21st Century Fox was in talks to purchase the cable
operator. A Fox spokesperson denied the rumors, saying 'there is no
truth" in the report. 21st Century Fox was part of MarketWatch
parent News Corp. until being spun off in 2013.
Apple Inc.(AAPL) said Monday that it will invest EUR1.7 billion
($1.92 billion)
(http://www.marketwatch.com/story/apple-to-invest-19-billion-in-european-data-centers-2015-02-23-5912328)
to build two data centers in Europe that will run 100% on renewable
energy -- in County Galway, Ireland and central Jutland, Denmark.
Shares were 1.6% higher.
For more notable movers, read our Movers & Shakers column
(http://www.marketwatch.com/story/dish-dillards-express-scripts-earnings-in-focus-2015-02-23).
(http://www.marketwatch.com/story/dish-dillards-express-scripts-earnings-in-focus-2015-02-23)
(http://www.marketwatch.com/story/dish-dillards-express-scripts-earnings-in-focus-2015-02-23)Other
markets:European stocks
(http://www.marketwatch.com/story/european-stocks-higher-as-greek-bailout-extended-2015-02-23)
got a lift from news of Greece's bailout extension, while the euro
(EURUSD) fell 0.7% against the dollar after news that German
business confidence improved for a fourth straight month in
February, but less than expected.
In Asia, the Nikkei 225 index
(http://www.marketwatch.com/story/japan-stocks-advance-for-fourth-day-to-15-year-high-2015-02-23)
advanced for a fourth session to another 15-year high.
Oil prices (CLJ5) reversed an earlier gain, falling $1.2, or
2.4%, while gold (GCJ5) also fell about $3.9, to $1,201.20 an
ounce.
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