By Anora Mahmudova and Victor Reklaitis, MarketWatch
M&A news for GE, 3-D printing stocks, energy sector,
Danaher
U.S. stocks tipped lower in late-morning trade Tuesday as
investors returned from a three-day holiday weekend.
The S&P 500 index led early losses, weighed down by a slide
in retailers Nordstrom Inc. (JWN) and Gap Inc. (GPS). After
starting in positive territory, the Dow industrials followed the
large-cap benchmark's lead, sinking into negative territory.
The S&P 500 was off by 3 points, or 0.2%, at 2,176. The Dow
Jones Industrial Average gave up opening gains to trade off 0.2% at
18,466. McDonald's Corporation, up 1.6%, led advancers, with shares
of Nike Inc.(NKE), General Electric Co. (GE) and United
Technologies Corp. (UTX) topping blue-chip decliners.
Meanwhile, the Nasdaq Composite Index switched between small
gains and losses, recently trading 0.1% higher at 5,254.
Analysts said the Tuesday session is likely to remain muted as
U.S. traders try to shake off the cobwebs after an extended
weekend, with the market closed on Monday for Labor Day.
"After a number of important data last week, which were all
soft, markets are in a slight consolidation mode," said Karyn
Cavanaugh, market strategist at Voya Investment Management.
While stock-market reaction to a weaker-than-expected reading on
service-sector growth--the ISM nonmanufacturing index
(http://www.marketwatch.com/story/service-side-of-us-economy-grows-at-slowest-pace-since-2010-ism-finds-2016-09-06)--was
muted, bond yields
(http://www.marketwatch.com/story/treasury-yields-fall-to-nearly-2-week-low-after-weak-services-sector-data-2016-09-06)
and the dollar fell sharply
(http://www.marketwatch.com/story/dollar-meanders-as-investors-look-for-central-bank-clarity-2016-09-06),
as investors continue to play down the possibility of a rate rise
this year.
"The fact that 'soft news is good news' mentality appears back,
is not great in the long term. But the lack of alternative
investment choices will continue to drive U.S. stocks higher in the
short term because of relatively attractive valuations," Cavanaugh
said.
The S&P 500 and Dow industrials both gained modestly last
week after a weaker-than-expected monthly jobs report on Friday
bolstered the view that the Federal Reserve won't raise interest
rates in September, fueling a rise in stocks and other assets
perceived as relatively risky.
"Stocks are up about 7% since the start of the year, which is
not euphoric and there has been a distinct rotation out of
defensive stocks into riskier sectors--all because investors are
relying on the Fed and other central banks to absorb any risk,"
Cavanaugh said.
See: This could be a September to remember for investors
(http://www.marketwatch.com/story/this-could-be-a-september-to-remember-for-investors-2016-09-01)
Individual movers: Shares in seeds and pesticides giant Monsanto
Co.(MON) rose 0.5% after German chemicals titan Bayer AG(BAYN.XE)
raised its bid for the U.S. company
(http://www.marketwatch.com/story/bayer-raises-offer-to-buy-monsanto-2016-09-06-24852015)
to $127.50 a share, up from $125 a share.
General Electric Co.(GE) was little changed after the
conglomerate said it would acquire two European 3-D printing
companies
(http://www.marketwatch.com/story/ge-to-buy-two-3-d-printing-firms-for-combined-14-billion-2016-09-06)
for a combined $1.4 billion, gobbling up Sweden's Arcam AB
(ARCM.SK) and Germany's SLM Solutions Group AG(AM3D.XE).
In the deal's wake, shares of U.S. 3-D printing companies
Stratasys Ltd.(SSYS) and 3-D Systems Corp.(DDD) were up 7% and 6%,
respectively. The 3-D Printing ETF(PRNT), which launched in July
and hasn't attracted much investor money (http://www.etf.com/PRNT),
was also up more than 5%.
Enbridge Inc.(ENB) and Spectra Energy Corp.(SE) announced a
stock-for-stock merger transaction, valuing Spectra's common stock
at $28 billion to create North America's largest energy
infrastructure company
(http://www.marketwatch.com/story/enbridge-and-spectra-energy-to-merge-to-create-largest-energy-infrastructure-company-in-n-america-2016-09-06).
Enbridge fell 0.2%, while Spectra jumped 13%.
Cepheid(CPHD) soared 52% to $52.36 following news that
conglomerate Danaher Corp.(DHR) plans to buy
(http://www.marketwatch.com/story/danaher-to-buy-diagnostics-maker-cepheid-for-about-4-billion-2016-09-06)
the maker of clinical testing gear for $53 a share in cash, or
about $4 billion. Danaher fell 0.2%.
Chip maker Marvell Technology Group Ltd.(MRVL) dropped 6.5%
after reporting that quarterly revenue fell more than expected
(http://www.marketwatch.com/story/marvell-technology-swings-to-profit-but-sales-dip-2016-09-06)
and issuing a mixed outlook.
Other markets:The U.S. oil benchmark
(http://www.marketwatch.com/story/wti-crude-oil-gains-as-russia-saudi-deal-continues-to-generate-buzz-2016-09-06)
reversed earlier gains and traded flat as doubts surrounded a
Russia-Saudi agreement to monitor the oil market and come up with
recommendations to promote stability. European stocks were slightly
higher, gold futures gained, and a key dollar index lost
ground.
Asian stock markets were broadly higher Tuesday
(http://www.marketwatch.com/story/asian-markets-rise-but-aussie-stocks-buck-trend-after-rba-stands-pat-2016-09-06),
though Australian equities fell after the central bank there kept
interest rates unchanged, and the Philippine benchmark fell after
U.S. President Obama canceled a meeting with the country's
leader.
Economic news: The ISM services index fell to 51.4 in August,
its lowest since February 2010. Meanwhile, the Federal Reserve's
labor-market conditions index
(http://www.marketwatch.com/story/feds-labor-market-conditions-index-sinks-back-into-negative-territory-in-august-2016-09-06)slipped
back into negative territory in August after a positive reading in
July, the seventh negative reading in the past eight months.
Read more:Weak service sector data could further undercut
hawkish Fed stance
(http://www.marketwatch.com/story/weak-service-sector-data-could-further-undercut-hawkish-fed-stance-2016-09-03)
On the Federal Reserve front, San Francisco Fed President John
Williams is slated to speak in Reno, Nev., at 9:15 p.m. Eastern
Time. He isn't currently a voting member of the central bank's
policy committee
Check out:
(END) Dow Jones Newswires
September 06, 2016 11:20 ET (15:20 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.