S&P 500 2,441.20 17.28
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Nasdaq 6,253.81 61.92
Crude Oil $60,490.00      $-1570.00
Market Update

S&P 500 Wipes Out Yearly Gain, Oil Prices at One-Year Low


Author: Nichole Harper
ticker.com
Last Update: 2:29 PM ET July 27 2015

2:20 PM New York City, New York Market indexes on Wall Street extended losses and major indexes are nearing to wipe out gains in the year. Crude oil extended five-week long losses but gold rebounded. Asian markets dropped after another sharp decline in Shanghai.

Stocks on Wall Street headed lower on Merger Monday, weakening outlook for commodities prices and another sharp fall in Chinese stocks.

In addition, lacklustre economic data and earnings also contributed to the lack of enthusiasm on Wall Street.

U.S. durable goods orders in June jumped 3.4% to $235.3 billion after two months of decline and 2.1% decrease in May.

Orders excluding transportation increased 0.8% and defense climbed 3.8%, the Department of Commerce said.

On Wall Street, Tollbooth Strategy Index slipped 63.09 or 0.6% to 10,684.22.

S&P 500 index slid 8.43 or 0.4% to 2,070.31 and the Nasdaq Composite Index fell 40.61 or 0.8% to 5,048.28.

Crude oil in New York slipped 46 cents to $47.68 a barrel and gold jumped $11.70 to $1,097.20 an ounce.

U.S. Movers

McGraw Hill Financial Inc (MHFI) plunged 6.2% or $6.49 to $99.09 after the benchmarks and ratings agency agreed to acquire a financial data and information company SNL Financial owned by private equity firm New Mountain Capital LLC for about $2.23 billion.

McGraw said it may finance $525 million in cash and $1.7 billion in new debt.

The transaction is expected to close in the third quarter of this year.

Separately, the ratings and financial statistical data provider reported sales in the second-quarter ending in June increased 3% to $1.34 billion from a year ago period.

Net income in the quarter soared 21% to $353 million or $1.28 per diluted share compared to $292 million or $1.06 from the same quarter last year.

The company reaffirmed its full-year forecast for adjusted earnings per share between $4.35 and $4.45.

Teva Pharmaceutical Industries Ltd (TEVA) surged 12.7% or $7.84 to $69.68 after the pharmaceutical company agreed to acquire the generic drugs business of Ireland-based Allergan Plc for about $40.5 billion in a cash and stock.

The generic drugs maker received $33.75 billion in cash and shares valued at $6.75 billion of Teva.

The transaction is expected to close in the first quarter of 2016.

Separately, the company said it has withdrawn its proposal to acquire all of the outstanding ordinary shares of Mylan N.V.

Separately, Teva said revenues in the second-quarter ending in June slid 2% to $4.97 billion from a year ago period.

Teva added free cash flow as of June 30, of about $1.3 billion jump 51% from the second-quarter of 2014.

The company lifted earnings per share forecast for the year in the range of $5.15 to $5.40 compared to previous estimated range between $5.05 and $5.35.

European Markets

European markets traded lower and metals and crude prices dropped to a new low in the year as China slow down looms and the U.S. dollar continues its advance.

In London trading, FTSE 100 index fell 44.92 or 0.7% to 6,534.84 and in Frankfurt the DAX index slumped 229.35 or 2% to 11,119.26.

In Paris, CAC 40 index dropped 97.24 or 1.9% to 5,960.02.

Deutsche Boerse AG slipped 1% to 83.28 after the Germany-based stock exchange operator agreed to acquire domestic foreign exchange trading platform 360T Beteiligungs GmbH for 725 million or $796 million.

Pearson Plc declined 4% to 1,170.25 pence after the U.K.-based media company confirmed that the company is in talk with The Economist Group Board and trustees regarding the potential sale of 50% stake in the group.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc