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Stock market today, August 6, 2014: U.S. stock futures were in the red this morning as investors are concerned about renewed geopolitical tensions in Europe. Dow Jones futures were down 51 points, Nasdaq futures slumped 21 points, and S&P 500 futures were down 7 points.
New fears have emerged that Russian soldiers are gathering at the eastern Ukraine border, after heavy fighting between Ukrainian forces and pro-Russian separatists erupted in the city of Donetsk. In addition, German manufacturing orders slumped in June by 3.2% from the previous month, a sign that increased problems in Eastern Europe have begun to take their toll on the EU's top economy.
In the last trading session, the Chicago Board Options Exchange Volatility Index (VIX), which gauges investment fear, jumped roughly 11.5% on the day.
Here are the top news stories to watch that will affect the stock market today:
- No Relocation: Shares of Walgreen Co. (NYSE: WAG) were back on the rise, after falling 4% on news the firm will not invert and relocate its headquarters to the United Kingdom after its recent purchase of British pharmacy chain Alliance Boots. In a recent interview with the Economist, U.S. President Barack Obama blasted corporate culture and tax incentives that drive U.S. firms abroad. Inversions have ramped up talk of tax reform in Washington, though a deal is unlikely by the fall. We explain everything you need to know about the basics of tax inversion deals here...
- Frozen Profits: Shares of The Walt Disney Co. (NYSE: DIS) were flat in post-market hours after the company announced its third-quarter revenues beat Wall Street expectations. DIS announced year-over-year quarterly revenue jumped 22%, boosted by the smash-hit "Frozen," which received several Academy Award nominations. The studio division, which produced "Frozen," saw its profits double, the best performance of any Disney business line.
- The Deal Is Off: Shares of Rupert Murdoch's Twenty-First Century Fox Inc. (NYSE: FOXA) soared more than 7% after hours yesterday after the media mogul withdrew his $80 billion bid for Time Warner Inc. (NYSE: TWX). The deal would have instantly created one of the world's largest media companies, and Murdock coveted Time Warner's hot property HBO, which he aimed to convert into a digital product to compete directly against online streaming giant Netflix Inc. (Nasdaq: NFLX). Shares of Time Warner slumped by nearly 10% after hours.