11:00 AM New York – U.S. stocks struggled to rise above flat lines as deal talks dominated markets sentiment. Apple is in talks to acquire Beats Electronics for as much as $3 billion. Omnicom Group and Publicis Groupe abandoned $35 billion merger.
U.S. stocks edged lower and market indexes struggled to rise above flat lines after a two-month correction in tech and internet stock continued.
Deal news also dominated market sentiment after New York based Omnicom Group Inc and Paris based Publicis Groupe SA abandoned their $35 billion merger.
Both companies cited regulatory hurdles and lack of clarity of tax regime and the delay in deal also created confusion among employees and customers.
S&P 500 index decreased 0.5% or 4.77 to 1,870.84 and the Nasdaq Composite Index declined 0.16% or 4.96 to 4,046.53.
Apple in Discussions to Acquire Beats Electronics
Apple Inc is said to be in discussion to acquire privately held for Beats Electronics for as much as $3 billion according to people close to the company.
The maker of popular Beats by Dr. Dre headphones would be the largest purchase by Apple as sales of music through the iTunes stores slowdown and more people around the world opt for streaming music services.
As many as 28 million people are said to be paying $1.1 billion around the world for music streaming services, according to the data available from International Phonographic Industry.
The largest Internet radio service is operated by Pandora with 75 million monthly users.
European markets declined and the euro edged lower to $1.38 after investors reacted for the second day in a row to dovish comments from the European Central Bank President Mario Draghi.
Expectations ran high for another round of monetary stimulus including a rate cut as early as next month.
Market indexes in India shot up ahead of the conclusion on national election this week on Monday and the opposition party Bhartiya Janata Party is expected to make substantial gains.
In Mumbai trading, market indexes soared on strong foreign fund flows and rising expectations of a stronger central government led by Bhartiya Janata Party after the national elections that are scheduled to end on May 12.
The widely followed Sensex surged the most since September 2013.
The Sensex Index vaulted 650.19 or 2.9% to close at 22,994.23. The CNX Nifty soared 198.95 or 3% to close at 6,858.80. For the week, Sensex jumped 2.6%.
India’s Trade Deficit, Exports and Imports Decline
April trade deficit edged lower to $10.1 billion from $10.5 billion in March and plunged from $17.7 billion in the month a year ago, ministry of commerce said today.
Exports dropped to a five-month low of $25.6 billion from $29.6 billion but higher from $24.35 billion in the month a year ago.
Imports declined to $35.7 billion from $40.08 billion in March and from $42.02 billion in the month a year ago.