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DJIA Today, Sept. 3, 2014: The Dow Jones Industrial Average managed to eke out a 10-point gain Wednesday, but overall U.S. markets were mixed as global tensions and strong auto sales offset one another. The Nasdaq was weighed down heavily by the tech sector this afternoon, as shares of Apple Inc. (Nasdaq: AAPL) slumped more than 4%.
Shares are on the decline due to the fallout after a possible breach of the iCloud led to the release of private photographs of numerous A-list female celebrities. The news comes just a week before an important Sept. 9 meeting in which the company is expected to unveil its new iPhone 6.
Here's the scorecard from today's trading session:
Dow: 17,078.28, +10.72 (+0.06%)
Nasdaq: 4,572.56, -25.62 (-0.56%)
S&P 500: 2,000.72, -1.56 (-0.08%)
The markets shed early gains this morning that were fueled by renewed optimism for a cease-fire between Ukrainian and pro-Russian forces in Eastern Europe. Meanwhile, the PHLX housing index dipped by 1.4% on the day. Despite doubling its quarterly revenue from last year, shares of Toll Brothers Inc. (NYSE: TOL) slipped more than 4% on the day, dragging down other stocks in the housing sector.
Here are more top stories from the stock market today:
- Time to Retire: Shares of Amazon.com Inc. (Nasdaq: AMZN) slipped almost 1% on the day, weighed down by negative pressure in the tech sector by Apple's new public relations problems. In addition, the company announced that its Chief Financial Officer Thomas Szkutak, who has been with the company since 2002, plans to retire in June 2015. Prior to joining the company, Szkutak worked at General Electric Co. (NYSE: GE) as a finance executive.
- Biotech Boom: The deals keep coming in the pharmaceutical sector. This afternoon, shares of Infinity Pharmaceuticals Inc. (Nasdaq: INFI) jumped by 44% on news that that company plans to develop and manufacture its new blood-cancer treatment in partnership with AbbVie Inc. (NYSE: ABBV). According to the deal, AbbVie offered $275 million upfront in the commercialization deal. Infinity also received incentives that could be worth up to $530 million in the event that the drug meets certain regulatory and sales milestones.
- Forecast Cuts: Shares of Delta Air Lines Inc. (NYSE: DAL) dropped by nearly 5% on news that the company slashed its third-quarter forecast for its operating margins and raised its outlook on jet fuel prices. Despite reporting a 2% increase in per-seat revenue, the company said it failed to meet its profit expectations, citing ongoing market concerns due to events in Ukraine and the Middle East.
- Inversion Fallout: Public outrage over tax inversions have swelled so much that yet another deal is now threatened. According to reports, talks between U.S. drug manufacturer Hospira Inc. (NYSE: HSP) and Danone SA (OTCMKTS ADR: DANOY) have stalled. Originally, the deal would have seen Hospira purchase Danone's medical nutrition business for $5 billion in cash and stock. In turn, the company would have been able to relocate its operations to Switzerland and reduce its corporate tax bill. The news that the deal has stalled comes in the wake of public and government pressure to have companies that are relocating abroad rethink their corporate strategies. Shares of Hospira were down 0.7% on the day.
Now our experts share some of the most important investment moves to make based on today's market trading – for Money Morning Members only:
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.