On The Fly: Top stock stories for Monday
Stocks on Wall Street spent the day in the red, continuing the pull back from the highs seen the day after last week's FOMC meeting as investors now turn their attention to the presidential race. The race for the White House begins its final stretch with tonight's first presidential debate, and while both Clinton and Trump's camps will surely be out tomorrow claiming that their candidate "won" the debate, the uncertainty inherent in the big decision facing Americans will not be resolved for certain until after election day. ECONOMIC NEWS: In the U.S., new home sales dropped 7.6% to 609,000 unit rate in August, which was better than the 8.3% month-over-month decline in the new home sales rate that was expected. In Asia, Bank of Japan Governor Haruhiko Kuroda suggested in a speech that the Japanese central bank was prepared to push rates deeper into negative territory if needed to help meet its inflation target. COMPANY NEWS: Twitter (TWTR) ended the trading day higher after media reports emerged saying that Disney (DIS) is working with a financial adviser to explore a potential offer for the company. According to CNBC's David Faber, a sale of the company could happen within the next 30-45 days, with Microsoft (MSFT) also among the many suitors. Salesforce (CRM) is said to be considering an offer of its own and has retained Bank of America for the process, Bloomberg reported. Prior to the news, Oppenheimer analyst Jason Helfstein downgraded Twitter to Underperform, saying that a media company, which he sees as the most likely acquirer of Twitter, would not pay meaningfully more than the valuation implied by his $17 price target on the stock. Disney was also downgraded this morning to Hold from Buy at Drexel Hamilton, but for different reasons, with analyst Tony Wible saying he believes a large step up in NBA costs, incremental subscriber losses, difficult studio comps, a riskier studio slate, and Shanghai cost pressures will weigh on fiscal 2017. When the day was done, Twitter closed 3.2% higher at $23.37, while Disney shares slipped 1.4% to $91.96 per share... Shares of Deutsche Bank (DB) trading in New York dropped 7% to $11.85 amid worries about its capital position after German Chancellor Angela Merkel ruled out government aid for the bank. The German bank, which faces a potential fine of as much as $14B in the U.S. over mortgage-securities investigations stemming from the 2008 financial crisis, denied that the company ever asked Merkel to intervene in the bank's dispute with the Justice Department, adding that a government bailout is "not on our agenda"... Pfizer (PFE) announced that, after an extensive evaluation, the company's Board of Directors and executive leadership team have determined the company will not pursue splitting Pfizer Innovative Health and Pfizer Essential Health into two, separate publicly traded companies at this time. MAJOR MOVERS: Among the notable gainers was Array Biopharma (ARRY), which advanced 81% after a Phase 3 study evaluating a combo treatment in patients with BRAF-mutant advanced, unresectable or metastatic melanoma met its primary endpoint. Also higher was Chemtura (CHMT), which gained 15.8% after agreeing to accept Lanxess' offer to buy the company for $33.50 per share. Among the noteworthy losers was Lands' End (LE), which dropped 14% after the company announced that its CEO will step down after less than two years in the position as the retailer looks to restore sales growth. Also lower was RetailMeNot (SALE), which slipped nearly 21% after the stock was downgraded by Stifel, with analyst Scott Devitt saying third party data indicates that the company's traffic trends have deteriorated recently. Additionally, Natus Medical (BABY) slid 9.7% after the company cut its third quarter guidance and announced that it has agreed to acquire the GN Otometrics business from GN Store Nord in an all cash transaction for $145M. INDEXES: The Dow fell 166.62, or 0.91%, to 18,094.83, the Nasdaq lost 48.26, or 0.91%, to 5,257.49, and the S&P 500 declined 18.59, or 0.86%, to 2,146.10.