Mixed Trading on Wall Street, Mylan Soars 8% on Teva Takeover Offer

Nichole Harper
21 Apr, 2015
New York City

On Wall Street market indexes struggled to rise and investors remained cautious on the earnings front. The rise of dollar against the euro and collapse in oil and commodities prices are expected to offer a strong headwinds to earnings. Mylan soared on a takeover approach by Teva.

[R]3:00 PM – On Wall Street market indexes struggled to rise and investors remained cautious on the earnings front. The rise of dollar against the euro and collapse in oil and commodities prices are expected to offer a strong headwinds to earnings. Mylan soared on a takeover approach by Teva.[/R]

Stocks on Wall Street struggled and investors reacted to individual company earnings news but the broader tone of the market is still cautious with a downward bias.

Market indexes have been hostage to stretched valuation, collapse in oil price and corporations struggling with earnings on the surge in dollar in the last six months.

On Wall Street, Tollbooth Strategy Index rose 0.1% or 14.34 to 10,636.38.

S&P 500 index slid 0.92 or 0.04% to 2,099.47 and the Nasdaq Composite Index rose 25.11 or 0.5% to 5,019.87.

Crude oil in New York gained 12 cents to $56.50 a barrel and gold jumped $8.50 to $1,202.20 an ounce.

U.S. Movers

Mylan soared more than 8% after Teva Pharmaceutical Industries offered to acquire the generic pharmaceuticals to create a combination with annual sales of $27 billion.

E I Du Pont De Nemours And Co ((DD)) dropped 2.9% or $2.14 to $70.70 after the industrial conglomerate reported net sales in the first-quarter ending in March declined 7.7% to $9.37 billion from a year ago period.

Net income in the quarter plunged 28.5% to $1.03 billion or $1.13 per diluted share compared to $1.44 million or $1.54 from the same quarter last year.

International Business Machines Corp ((IBM)) slipped $1.52 to $164.64 after the computer system maker and services provider reported total revenues in the first-quarter ending in March plunged 11.9% to $19.59 billion from a year ago period.

Net income in the quarter dropped 2.4% to $2.33 billion or $2.35 per diluted share compared to $2.38 billion or $2.29 from the same quarter last year.

Lockheed Martin Corporation ((LMT)) fell 95 cents to $195.85 after the security and aerospace company said net sales in the first-quarter ending in March dropped 5.1% to $10.11 billion from a year ago period.

Net income in the quarter declined 5.9% to $878 million or $2.74 per diluted share compared to $933 million or $2.87 from the same quarter last year.

European Markets

In London trading, FTSE 100 index rose 0.2% or 15.82 to 7,067.95 and in Frankfurt the DAX index increased 0.6% or 67.47 to 11,959.38.

In Paris, CAC 40 index gained 0.2% or 10.74 to 5,198.33.

Associated British Foods Plc declined 4.9% to 2,723 pence after the U.K.-based diversified food processing company said group revenues in the first-quarter ending in February rose 1% to £6.25 billion from £2.21 billion in a year ago period.

Net profit in the quarter tumbled 62.9% from a year ago period to £124 million compared to £334 million and diluted earnings per share fell to 10 pence from 9.7 pence.

SAP SE climbed 3.2% to €69.51 after the Germany-based enterprise application developer reported total revenue in the first-quarter ending in March surged 22% to €4.50 billion from €3.70 billion in a year ago period.

Net profit in the quarter plunged 23% from a year ago to €414 million compared to €534 million and diluted earnings per share rose to €0.35 from €0.45.

The company said revenues from cloud subscriptions and support in the quarter more than doubled to €503 million and software support revenues soared 17% to €2.45 billion. Software licenses and support revenues jumped 16% to €3.15 billion.

Asian Markets

Tokyo market indexes closed higher following a rebound in New York and European markets.

Daiichi Sankyo said it plans to exit from its investment in India-based generic pharmaceuticals maker Sun Pharma. Yamada Denki said latest fiscal year declined 1.7%.

Aeon Co Ltd gained 1.9% to 1,552 yen after the supermarkets and convenience stores operator reported net sales in the first-quarter ending in February soared 10.7% to 7.08 trillion yen from 6.40 trillion yen in a year ago period.

Net income in the period declined 7.7% to 42.07 billion yen compared to 45.60 billion yen and diluted earnings per share jumped to 49.56 yen from 50.13 yen in the same period a year ago.

The retailer forecasted net sales in the first-half ending in August to climb 13% to 8 trillion yen and net income to increase 1% to 42.50 billion yen.

The company forecasted net sales for the year to jump 5.4% to 45 billion yen and net income to climb 35.3% to 9.15 billion yen.

Stocks in Mumbai traded lower and rupee turned lower and dropped to the low in the year on the worries that the central government is not likely to standardize rates for alternative minimum tax for foreign investors.

Rupee decreased 12 paisa to 63.19.

The Sensex Index fell 34.95 to close at 27,850.56. The CNX Nifty slid 13.10 to 8,434.95.

Adani Power agreed to acquire Hyderabad-based Lanco Infratech controlled Udupi Power worth ₹6,300 crore.

Sun Pharma said Japan-based Daiichi Sankyo plans to sell its entire stake of 8.3% worth $3.6 billion in the company. Hindustan Zinc said net in the quarter rose 6%.

Sun Pharmaceutical Industries Ltd plunged 8% to ₹960.40 after the pharmaceutical products maker said Japan-based Daiichi Sankyo plans to sell its entire stake of 8.3% worth $3.6 billion in the company.

Australian stocks opened higher after the Reserve Bank minutes of latest meeting in April showed an easing bias.

The central bank statement was widely interpreted as a possible easing as early as next meeting as long as the economic data suggest that the price pressure remain weak and in-line with expectations of the policymakers.

Australian dollar closed at 76.90 U.S. cents and in stock trading turnover rose to 655 million shares worth $4.5 billion.

At close, the ASX 200 Index jumped 39.20 or 0.7% to 5,872.30 and the broader All Ordinaries Index increased 37.20 to 5,844.

Rio Tinto Limited jumped 1.5% to $55.50 after the mining company reported total iron-ore shipment in first-quarter ending in March climbed 9% to 72.5 million metric tons from a year ago period but declined 12% from the previous quarter.

The company reaffirmed its full-year forecast for iron-ore shipments to nearly 350 million tons.

The miner said global iron ore production in the quarter soared 12% to 74.7 million metric tons but dropped 6% compared to fourth-quarter.