On Merger Monday U.S. Stocks Rest After a Week of Surge, Dollar Eases

Nichole Harper
07 Jul, 2014
New York City

Stocks on Wall Street traded lower led by a fall in small cap stocks. Monday merger led to more deal announcements in the U.S. and Europe. ADM agreed to acquire Wild Flavors for $3 billion. Argentina enters in talks with bond holders.

[R]1:05 PM New York – Stocks on Wall Street traded lower led by a fall in small cap stocks. Monday merger led to more deal announcements in the U.S. and Europe. ADM agreed to acquire Wild Flavors for $3 billion. Argentina enters in talks with bond holders.[/R]

Stocks on Wall Street traded lower led by a decline in small cap stocks and investors focused on the direction of low interest rates for the rest of the year. World markets also traded down following a week of healthy advance and oil traded at elevated level.

Tollbooth Index decreased 0.4% or 35.98 to 9,496.94. Dow Jones eased 0.3%, Nasdaq Composite fell 0.7% and the S&P 500 index dropped 0.4%.

European Markets

The deal making was in full swing in Europe on Monday and ahead of month long holidays approaching in the region.

Anglo American intends to sell its 50% stake in Lafarge worth £885 million and Helvetia agreed to buy a majority stake in Nationale Suisse at about $2 billion.

Lafarge and Holcim plans to sale assets in Europe to raise up to €6 billion and meet regulatory demands for the $50 billion merger.

In London trading, FTSE 100 index slipped 0.5% or 34.63 to 6,831.42 and in Frankfurt the DAX index dropped 0.6% or 61.91 to 9,947.17.

In Paris, CAC 40 index declined 1% or 45.54 to 4,423.44.

Asian Markets

Stocks in Tokyo eased and market indexes turned lower after a week of advance led by a decline in resource and retail stocks. The yen traded below 102 mark. Retailers and resource stocks were in focus.

FamilyMart jumped 4.5% after Itochu plans to increase its stake to 37% before the end of current fiscal year. Aeon dropped 5% after quarterly net plunged.

The Nikkei 225 Stock Average slipped 57.69 or 0.4% to 15,379.44 and the broader Topix index fell 5.37 to 1,279.87.

The yen closed at 101.95 against one U.S. dollar.

In Mumbai trading ahead of financial and railway budget this week the Sensex Index jumped 138.02 or 0.5% to close at 26,100.08 The CNX Nifty gained 35.55 to 7,787.15.

Mahindra Holidays acquired 19% stake in Finland-based Holiday Club Resorts for €13 million.

Oil India plans to buy oil exploration block for $85 million in Russia.

Rajesh Exports secured jewelry export order of Rs 1,260 crore from a Dubai, UAE retailer.

U.S. Movers

Apple Inc ((AAPL)) increased 1.2% or $1.19 to $95.24 and the popular gadgets maker expected to launch its smart-watch before the end of this year.

Archer Daniels Midland Company ((ADM)) gained 45 cents to $46.22 after the food processing company agreed to acquire Switzerland-based Wild Flavors GmbH, a food flavors and specialty ingredients for €2.2 billion or $3.1 billion in cash.

Alcoa Inc ((AA)) fell 14 cents to $14.84 after the aluminum producer is scheduled to report earnings after the market close tomorrow.

BioDelivery Sciences International, Inc ((BDSI)) surged 12.8% or $1.53 to $13.52 after the therapeutics drugs maker said it experimental pain drug found effective in a second trial and expected to apply for a marketing approval by January 2015.

Expedia Inc ((EXPE)) dropped 1.8% or $1.51 to $80.70 after the company offered to acquire Australia based Wotif.com Holdings for $658 million.