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Why is the stock market down today? Here is your answer for July 6, 2015.
How Did the Stock Market Do Today?
Dow Jones: 17,683.58; -46.53; -0.26%
S&P 500: 2,068.79; -8.02; -0.39%
Nasdaq: 4,991.94; -17.27; -0.34%
The DJIA today fell 46 points as traders braced for the consequences of Greek voters' decision to reject European austerity measures that would allow them to access much-needed financial assistance. Greece Finance Minister Yanis Varoufakis resigned from his position, stating that his absence in the future could potentially enable Prime Minister Alexis Tsipras to reach a deal with creditors. The European Central Bank, however, decided that it was not going to expand emergency funding for this debt-ridden nation, which has ignited fears that it could go bankrupt.
Top Stock Market News Today
- Stock Market News: All 10 S&P sectors were in the red this afternoon, led by energy and basic materials. Investors appear optimistic that a deal could still be struck between Greece and its international creditors. The markets opened down 0.5%, but quickly pared losses and even turned positive for a while on news that the International Monetary Fund may attempt to salvage the nation's fate in the coming days. Meanwhile, the U.S. economy got a shot in the arm on news that its U.S. services sector showed positive gains for the month of June.
- Energy Woes: Oil prices collapsed on global economic concerns ranging from Greece's debt woes to China's ongoing efforts to prevent an all-out crash in its stock markets. WTI crude futures for August slumped 7.4% this morning to hit $52.81 per barrel. Brent oil prices fell 5.8% to hit $56.78 per barrel. The declines punished oil producers. Shares of Chevron Corp. (NYSE: CVX) slipped 1.1%, while Exxon Mobil Corp. (NYSE: XOM) dipped 0.7%. The energy sector's biggest loser today was Comstock Resources Inc. (NYSE: CRK), which slipped more than 13%.
- On Tap Tomorrow: On Tuesday, the United States will announce its global trade figures and the JOLTS report. Companies reporting earnings tomorrow morning include CHS Inc. (Nasdaq: CHSCP) and Container Store Group Inc. (NYSE: TCS).
Stocks to Watch: AET, WTW, DLTR, KHC, MYL
- Stocks to Watch No. 1, AET: Shares of health insurer Aetna Inc. (NYSE: AET) slipped more than 6.5% on news that it will purchase rival Humana Inc. (NYSE: HUM) for roughly $37 billion. This represents the largest deal in the history of the insurance industry. The deal allows Aetna to challenge rival Anthem Inc. (NYSE: ANTM) to become the second-largest insurance company by membership. Humana shares were up nearly 1%.
- Stocks to Watch No. 2, WTW: Shares of Weight Watchers International Inc. (NYSE: WTW) jumped more than 8% on news that the firm is being considered by an activist hedge fund as a possible takeover candidate. The company's stock has fallen more than 85% since December 2014, but the New York Post reports it could receive a buyout offer in the range of $2 billion.
- Stocks to Watch No. 3, DLTR: Shares of Dollar Tree Inc. (Nasdaq: DLTR) slipped more than 0.5% intraday on news the discount retailer has received final permission from the Federal Trade Commission to purchase Family Dollar Stores Inc. (NYSE: FDO). Under its agreement with the government, Dollar Tree's $8.5 billion deal will require the newly combined company to close 330 stores over the next 150 days.
- Stocks to Watch No. 4, KHC: During its first official day of trading, the new food conglomerate Kraft Heinz Inc. (NYSE: KHC) jumped nearly 2.75% after analysts at Stifel began coverage and issued a "Buy" rating. The deal is a boon for Warren Buffett, whose stake is now worth $24 billion. The deal, which was announced in March, makes Kraft Heinz the world's fifth-largest food company.
- Stocks to Watch No 5, MYL: Shares of Mylan NV (Nasdaq: MYL) were up nearly 2% intraday on news that Teva Pharmaceutical Industries Ltd. (NYSE ADR: TEVA) may be preparing to raise its bid another $2 billion. The new deal, which could be worth $43 billion, might come as early as this week.
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