Stocks slide on weak factory data
US manufacturing activity and new orders slow. Construction spending rises. Barclays' chairman quits over a rate-fixing scandal. Bristol-Myers Squibb is buying Amylin Pharmaceuticals.
By Andrea Tse and wire reports
Stocks fell Monday after a report showed U.S. manufacturing slowed last month for the first time in nearly three years.
The Institute for Supply Management's index of manufacturing activity fell to 49.7, down from 53.5 in May to the lowest reading since July 2009, The Associated Press reported. Readings below 50 indicate contraction. New manufacturing orders also dropped below 50 for the first since April 2009. Factories also reported lower demand from overseas, likely because of Europe's financial crisis, AP said.
And the Commerce Department reported that U.S. builders increased their spending in May by the largest amount in five months, rising 0.9% after a 0.6% rise in April. It was the biggest percentage gain since December, AP reported. The increase pushed spending to a seasonally adjusted annual rate of $830 billion, 11.3% above a 12-year low hit in February 2011. Still, the level of spending is roughly half of what economists consider to be healthy, AP said.
U.S. stocks staged a huge rally Friday as investors cheered the progress being made at the latest European Union summit to address the region's debt crisis.
"With the summit safely out of the way we can raise our minds from the gutter of European politics to the pure atmosphere of economics," said Paul Donovan, a global economist at UBS.
The FTSE in London was rising 0.61% and the DAX in Germany was gaining 1.31%. Hong Kong's Hang Seng index was closed for the day. The Nikkei in Japan finished down 0.04%.
Bristol-Myers Squibb (BMY) is purchasing diabetes drugmaker Amylin Pharmaceuticals (AMLN) in a deal valued at about $7 billion. The companies said Friday that Bristol-Myers will pay $31 a share in cash for Amylin. The deal includes Amylin's net debt and a payment obligation to Eli Lilly (LLY), bringing the total value of the transaction to about $7 billion, the companies said. The purchase price offers a 9.9% premium of to Amylin's closing share price Friday of $28.20.
Barclays (BCS) said Monday its chairman, Marcus Agius, has resigned after the bank's $453 million settlement of an investigation into alleged interest rate manipulation. Regulators in the U.S. and the U.K. alleged that Barclays had submitted false data for setting the London interbank offered rate, or Libor, between 2005 and 2009. Agius had been chairman at Barclays since the beginning of 2007.
Technology distributor Ingram Micro (IM) has agreed to acquire wireless device distributor BrightPoint (CELL) for $840 million, including debt. The offer of $9 a share is a 66% premium to BrightPint's closing price Friday of $5.41.
Germany's Linde has agreed to buy Lincare (LNCR) for about $3.8 billion. Under the deal, Linde will pay $41.50 a share for Lincare, a leader in the U.S. home respiratory market. Lincare shares closed Friday at $34.02.
Apple (AAPL) paid $60 million to Shenzhen Proview Technology to settle a dispute in China over ownership of the iPad name, a court announced Monday, according to The Associated Press. The deal removes a potential obstacle to sales of the iPad in China, a key market.
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SEE what the last four letters can say about a name....?
November is the rodent's removal month.
DNC Plan: Tax us into oblivian as evidenced by Obama Tax... Congress can always think of more and more ways to take our hard earned money -- they are the greediest bunch around. Everyone complains about corporate greed, but what about political greed?
Why should we pay more taxes to the government when all they do is waste, abuse, and mismanage every dime? Ever here of $500.00 dollar hammers and toilet seats? Any vote for the DNC is a vote for more of the same -- tax, tax and tax. If it moves tax it. If it continues to move regulate it, if it stops moving subsidize it... Idiocy 101.
I think Republicans have no problem paying more taxes as long as there are similar cuts in spending,thats what will get rid of deficits.I think Democrats have the problem with taxes and they love the spending.I think EVERYONE should have a tax increase,Get rid of Earned income credits and put them where they should be in Welfare also food stamps in Welfare not the farm bill. Cut Corporate Subsidies,cut everything at least 10%.
The only way out of this mess is a strong economy and NO Obami El Salami!
Go Mitt go.
"What does Mitt Romney have in common with a mirror? Don't answer. All you see is the reflection of a man and not his true image."
This step n fetch it is talking about "true image"
SEE, how pathetic these commies are?
We have a president , we don't know where he was born.
We don't see his college transcripts , ever ?
We can't look into his religious beliefs or past associations - (It's the R word , don't you know? )
He was against Gay marriage BEFORE he "evolved"
He was against amnesty before he decided to sht on the constition.
He was against lobbyist BEFORE he hired them for his admin
He was against excessive campaign funding UNTIL Geo Soros decided to make him our next president and bought him like a slave
He was going to lower the deficit by half - BEFORE he decided to triple it!
He was against corruption until he found the green energy magic corruption button - then he kept pushing it -- SOLYNDRA and more !
ALL THAT TRANSPARENCY TOO
SEE what the last four letters can say about a name....?
November is the rodent's removal month.
50 thumbs UP and 10 thumbs DOWN
I guess from the replies I read SOME are very sore losers...ARE YOU AFRAID OF THE TRUTH...?
Kinda like all that "TRANSPARENCY" , cretin?
Tell me what is made in America. GM(Government Motors) Would not purchase a GM product. Chrysler at least they have paid the tax payers back. Ford, simply the best. The done it the American way, stood on their on 2 feet. Not much left that is made in America. Who ray for plastics. Good old Sterilite, still and American Company. Think most all others have sold out to China. Our problem, the rich don't care, and the poor are being turned in to Socialists. Us working people well we are jus Fd.
Fat Cat, the only way out of this is for people to stop believing in an institution that runs it's business like a casino. Wall Street is nothing more then a big casino where you buy your chips and every day's activities are a game of chance! It's like pulling the one armed bandit. And many times Wall Street is the master bandit!!!!!!!
I do not hate the potus... however, he is a marxist advocate and sympathizer and I don't see how anyone can deny that. He and most of the DNC think that big government can/will solve all our problems, when, in fact, they usually create an even bigger mess. I, for one, have more faith in the private sector than the government sector... It is really as simple as that. However, that is not to say that the government does not have a role to play in our lives when it comes to national security or emergency response. But, even in the case of emergency response, why do we continue to bail-out people when they make a decision to build a house along the banks of the Mississippi? Everyone knows it has a tendency to flood, but, disaster after disaster, there the gov. is with a big fat paycheck... Just saying...
You have to question why are we having these wide market swings ? Yea- Friday was great ! Based on hope though-will the EU follow through ? And if bad news comes- and it will this week- the ticker falls like a rock; doesn't matter, it seems, how financially well the individual US companies are doing. If you go back to 2007, you had these wild swings before the bottom dropped out- No I'm not saying it will, but things aren't all rosy neither. Just continue to invest in you own local economy, small business, and your state.
BTW: looks like you got a new hot wheel fat cat- nice picture of it !!
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[BRIEFING.COM] The S&P 500 ended this week with a bang, roaring to a new all-time high on the back of stronger-than-expected economic data, influential leadership, and an ongoing appreciation for the Fed's monetary policy support.
The bullish bias was evident in premarket action as the S&P futures pointed to a higher start without the benefit of any definitive news catalyst. Stocks indeed benefited from a blast of buying interest at the opening bell on this ... More
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