S&P 500 Index Consolidates as Oil Price Falls and Apple Weighs

Nichole Harper
26 Oct, 2015
New York City

Market indexes were in consolidation after the S&P 500 index rose 7.9% in the month so far. Weak third-quarter trading was largely overcome in the last three weeks as tech and large caps lead the gainers.

[R][4:10 PM New York City, New York – Market indexes were in consolidation after the S&P 500 index rose 7.9% in the month so far. Weak third-quarter trading was largely overcome in the last three weeks as tech and large caps lead the gainers.[/R]

Stocks on Wall Street traded lower and energy complex led the decliners and Apple Inc edged down ahead of earnings on Tuesday.

Market indexes have advanced consistently in October after a weak third-quarter with the S&P 500 index jumping 7.9% in the month so far.

On Wall Street, Tollbooth Strategy Index edged up 6.15 to 10,939.52.

S&P 500 index slid 5.80 or 0.3% to 2,069.35 and the Nasdaq Composite Index rose 1.80 to 5,032.94.

Crude oil in New York fell 49 cents to $44.11 a barrel and gold added $1.85 to $1,166.30 an ounce.

U.S. Movers

Duke Energy Corp ((DUK)) dropped 2.6% or $1.90 to $71.84 after the energy company agreed to acquire natural gas distributor Piedmont Natural Gas Inc for about $4.9 billion in cash and increase one million of natural gas customers in the Carolinas and Tennessee.

Under the terms, shareholders of Piedmont will receive $60 in cash per share, a premium of 40% on closing price of October 23. Both companies started their operation in Carolinas more than 60 years ago.

Piedmont Natural Gas Company, Inc stock surged 39.5% to $58.88.

General Atlantic LLC, the privately-held equity firm agreed to acquire 21.6% stake in the India-baed IIFL Wealth Management Limited for about $173 million or ₹11.2 billion.

IIFL Wealth is a wealth management company managing $12 billion of assets for over 8,600 clients through its 150+ relationship managers.

Intercontinental Exchange Inc ((ICE)) decreased 1.4% or $3.58 to $245.22 after the trading exchanges operator agreed to acquire Interactive Data Corporation, a analyze data and trading solutions provider for about $5.2 billion, including $3.65 billion in cash and $1.55 billion in stock.

The transaction is expected to close by the end of this year.

Pep Boys-Manny Moe and Jack ((PBY)) surged 23.4% or $2.84 to $14.99 after the automobile components retailer agreed to be acquired by Japan-based Bridgestone Americas Inc. for $15 per share in cash or about $835 million, a premium of 23% over the closing price Friday.

The transaction is expected to close during the first-quarter of 2016 and its stock will not trade on the New York Stock Exchange.

Starwood Capital Group, the privately-held real estate and energy infrastructure developer agreed to acquire 23,262 apartment units in 72 assets across the United States from its rival Equity Residential for about $5.37 billion.

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

Western Refining, Inc ((WNR)) fell 11 cents or $42.15 after the oil refiner and marketer submitted proposal valued at about $2.56 billion to Northern Tier Energy LP in a cash-and-stock as it already owns 38% stake in the Northern Tier.

The offer consist 15% premium on closing price of October 23 that including $17.50 in cash and 0.2266 of a share.

European Markets

In London trading, FTSE 100 index slipped 23.23 or 0.4% to 6,421.01 and in Frankfurt the DAX index increased 39.99 or 0.3% to 10,835.55.

In Paris, CAC 40 index fell 11.20 or 0.2% to 4,912.10.

Koninklijke Philips NV fell 0.3% to €23.68 after the Netherland-based customer and healthcare products maker reported sales in the third-quarter ending in September soared 12.5% from a year ago to €5.84 billion.

Net in the quarter swung to profit from a year ago to €324 million compared to a loss of €103 million and diluted earnings per share of €0.34 from a diluted loss per share of €0.11.

Philips reaffirmed to complete the separation of its Lighting business in the first half of next year with estimated costs for 2015 of about €200 million to €300 million.

Peugeot S.A slipped 1.8% to €15.94 after the passenger cars and trucks maker reported group revenues in the third-quarter ending in September jumped 3.2% form a year ago to €12.39 billion.

The group forecasted operating free cash flow to increase €2 billion through 2017.

Asian Markets

Nikkei average in Tokyo closed at a 2-month high after China lowered its rate in a surprise move and ECB offered to do more to support lending.

The moves by two central banks stoked speculation of additional stimulus steps from the Bank of Japan.

The Nikkei 225 Stock Average jumped 121.82 or 0.6% to 18,947.12 and the broader Topix index rose 11.15 to 1,558.99.

The yen strengthened to 120.94 against a dollar.

Hitachi, Ltd surged 6.1% to 730.50 yen after the diversified company lifted revenues forecast for the first-half ending in September to jump 2.3% to 4.81 trillion yen from the earlier estimate of 4.70 trillion yen.

Net income for the period forecasted to soar 38.6% to 97 billion yen from the previous guidance of 70 billion yen.