US close: Markets finish last day of April in the red
Wall Street finished on a downbeat note on Monday, despite opening in the green after a profit beat at fast food giant McDonald's helped boost early sentiment, with investors spending the afternoon digesting a mixed bag of data.
Dow Jones I.A.
38,852.86
04:30 15/10/20
Nasdaq 100
18,869.44
12:15 28/05/24
The Dow Jones Industrial Average ended the day down 0.61% at 24,163.15, while the S&P 500 lost 0.82% to 2,648.05 and the Nasdaq 100 shed 0.76% to 6,605.57.
Deal news was in focus early in the day, as T-Mobile US and Sprint agreed a $26bn merger that would reduce the major US wireless providers to three from four.
However, RBC Capital Markets said regulatory approval for the deal was likely to be challenging.
"We believe Department of Justice staff feel vindicated in blocking the AT&T/T-Mobile merger several years ago and would want to maintain a four-player market to preserve competitive behaviour, whereas a three-player market may be susceptible to coordinated effects," RBC said.
Elsewhere, refiner Marathon Petroleum agreed to buy rival Andeavor for more than $23bn in a deal that is expected to produce synergies of $1bn.
Walmart was up 1.34% as its UK unit, Asda, agreed to merge with London-listed supermarket retailer Sainsbury's.
David Cheetham, chief market analyst at XTB, said that while the UK's Competition and Markets Authority has already stated that the merger will "likely be subject to review", it appears unlikely that the deal will be blocked.
"A market share in the low 30-percents is a long way from monopolistic and given the intense competition in the sector, aptly highlighted by the emergence of Lidl and Aldi, as well as the fact that the new market share will not be that much more than the one currently enjoyed by the market leader Tesco, the CMA are unlikely to stand in the way and scupper the arrangement."
McDonald's gained 5.77% after menu price increases fueled higher first-quarter earnings.
Arconic tanked 20.63% after cutting its full-year profit forecast, and AK Steel Holding lost 3.37% despite posting better than expected earnings.
On the data front, economic activity in the Chicago area improved a touch less than expected in April, according to figures released on Monday.
The MNI Chicago business barometer rose to 57.6 from 57.4 in March, snapping a three-month downward trend but still coming in below expectations for a reading of 57.9.
Elsewhere, a key measure of US inflation rose to the Federal Reserve's target for the first time in a year, lifting market expectations for future US interest rate rises.
Growth in March's personal consumption expenditures index picked up to 2% compared to a year ago, from a 1.7% pace in February, as economists expected. This was despite no change movement month-on-month between the headline PCE index.
Core PCE inflation, the Fed's preferred measure of inflation, reached 1.9% from 1.6%, in line with the market forecast, as the core PCE deflator rose 0.2% on the month.
Lastly, contracts to buy previously owned homes rose less than expected in March as a lack of properties for sale held back activity for another month, according to the National Association of Realtors.
The pending home sales index nudged higher to a reading of 107.6, up 0.4% from February and the second consecutive monthly rise.
January's index was slightly downwardly revised to 107.2.
Dow Jones - Risers
McDonald's Corp. (MCD) $167.44 5.77%
Apple Inc. (AAPL) $165.26 1.81%
Walmart Inc. (WMT) $88.46 1.34%
Walt Disney Co. (DIS) $100.33 1.13%
Visa Inc. (V) $126.91 0.71%
Exxon Mobil Corp. (XOM) $77.75 -0.05%
Caterpillar Inc. (CAT) $144.40 -0.22%
Coca-Cola Co. (KO) $43.21 -0.23%
JP Morgan Chase & Co. (JPM) $108.78 -0.57%
Goldman Sachs Group Inc. (GS) $238.28 -0.61%
Dow Jones - Fallers
Verizon Communications Inc. (VZ) $49.34 -4.32%
Microsoft Corp. (MSFT) $93.52 -2.40%
General Electric Co. (GE) $14.07 -2.16%
Boeing Co. (BA) $333.56 -2.15%
Intel Corp. (INTC) $51.62 -2.11%
United Technologies Corp. (UTX) $120.15 -1.89%
Nike Inc. (NKE) $68.39 -1.68%
Dowdupont Inc. (DWDP) $63.26 -1.68%
Unitedhealth Group Inc. (UNH) $236.52 -1.57%
Johnson & Johnson (JNJ) $126.49 -1.39%
S&P 500 - Risers
Andeavor (ANDV) $138.32 13.03%
McDonald's Corp. (MCD) $167.44 5.77%
United States Steel Corp. (X) $33.83 4.51%
Mattel Inc. (MAT) $14.80 4.45%
Western Union Co. (WU) $19.74 2.12%
Apache Corp. (APA) $40.95 1.89%
Apple Inc. (AAPL) $165.26 1.81%
Booking Holdings Inc. (BKNG) $2,178.00 1.69%
Devon Energy Corp. (DVN) $36.33 1.65%
F5 Networks Inc. (FFIV) $163.09 1.40%
S&P 500 - Fallers
First Solar Inc. (FSLR) $70.91 -9.03%
Marathon Petroleum Corporation (MPC) $74.91 -8.01%
Pitney Bowes Inc. (PBI) $10.22 -5.72%
Allergan plc (AGN) $153.65 -5.18%
Endo International Plc (ENDP) $5.73 -4.50%
Celgene Corp. (CELG) $87.10 -4.47%
Signet Jewelers Ltd (SIG) $38.87 -4.40%
Mallinckrodt Plc Ordinary Shares (MNK) $12.99 -4.34%
Verizon Communications Inc. (VZ) $49.34 -4.32%
Bed Bath & Beyond Inc. (BBBY) $17.46 -4.17%
Nasdaq 100 - Risers
Charter Communications Inc. (CHTR) $271.29 3.02%
Apple Inc. (AAPL) $165.26 1.81%
Booking Holdings Inc. (BKNG) $2,178.00 1.69%
NetEase Inc. Ads (NTES) $257.07 1.24%
Take-Two Interactive Software Inc. (TTWO) $99.71 1.10%
Activision Blizzard Inc. (ATVI) $66.35 0.85%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $250.91 0.84%
Hasbro Inc (HAS) $88.09 0.84%
Check Point Software Technologies Ltd. (CHKP) $96.51 0.81%
Ctrip.Com International Ltd. Ads (CTRP) $40.90 0.66%
Nasdaq 100 - Fallers
T-Mobile Us, Inc. (TMUS) $60.51 -6.22%
Celgene Corp. (CELG) $87.10 -4.47%
Dish Network Corp. (DISH) $33.55 -3.43%
Micron Technology Inc. (MU) $45.98 -3.24%
Align Technology Inc. (ALGN) $249.85 -3.12%
Alexion Pharmaceuticals Inc. (ALXN) $117.63 -3.08%
Regeneron Pharmaceuticals Inc. (REGN) $303.68 -2.99%
O'Reilly Automotive Inc. (ORLY) $256.07 -2.74%
Seagate Technology Plc (STX) $57.89 -2.74%
Western Digital Corp. (WDC) $78.79 -2.58%