By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Valeant jumps on deal news; oil, euro tumble
NEW YORK (MarketWatch) -- U.S. stocks ended Monday's choppy
session roughly where they started it, as a late-afternoon rebound
helped pare early losses.
A drop in oil prices weighed on energy companies. Meanwhile, a
pickup in merger-and-acquisition activity in the pharmaceutical
industry helped push health-care stocks slightly higher.
The Nasdaq Composite (RIXF) ended the session 5 points, or 0.1%,
higher at 4,960, helped in large by a 2.7% jump in Apple, Inc.
(AAPL) Monday's gain is the tech-heavy index's ninth in a row. The
last time the index rose for this long was in September 2010,
according to FactSet.
10 stocks that are pushing the Nasdaq to 5,000
(http://www.marketwatch.com/story/10-stocks-that-are-pushing-the-nasdaq-to-5000-2015-02-23)
The S&P 500 (SPX) closed flat at 2,109.66. Monday's trade
was skewed toward defensive plays, as investors preferred utilities
and health-care stocks, while staying away from telecoms, energy
and consumer discretionary companies.
The Dow Jones Industrial Average (DJI) retreated from a record
close notched on Friday. The blue-chip index slipped 23.54 points,
or 0.1%, to 18,116.90. More than half of its 30 members finished
lower. Boeing Co. (BA) was the biggest decliner, while UnitedHealth
Group Inc. (UNH) led gainers.
David O'Malley, chief executive officer at Penn Mutual Asset
Management, said geopolitical news has tended to dictate market
direction at the open, with money flows then pushing stocks higher
in afternoon trading.
"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 [reassurances] to be patient
and data-dependent while money is pouring into equity funds,"
O'Malley said.
Steven Wieting, global chief investment strategist at Citi
Private Bank, said investors are waiting to see the 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)
(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 15% 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) shares rose 1.3% after the drug maker
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.
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 rose 2.7%.
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 Greece's bailout extension, while the euro (EURUSD)
fell 0.5% against the dollar after 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
(http://www.marketwatch.com/story/oil-rises-marginally-gains-capped-by-high-us-supplies-2015-02-23-2103192)
an earlier gain and settled below $50 a barrel on Monday amid
investor concerns about excess crude supply in U.S.
Gold (GCJ5) dropped $4.10
(http://www.marketwatch.com/storyno-meta-for-guid) to finish at
$1,200.80 an ounce.
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