On The Fly: Top stock stories for Monday
Stocks on Wall Street closed broadly and sharply lower as losses from markets overseas weighed on sentiment and Facebook (FB) shares dropped on reports that data of 50M users were misused. This week's Federal Reserve's policy meeting is also in focus as investors prepare for a potential interest rate hike. ECONOMIC NEWS: No major economic reports were released today. COMPANY NEWS: Shares of Facebook slipped 6.8% after it suspended Cambridge Analytica, the political data company that worked with the Trump presidential campaign, claiming it violated rules by failing to delete user data collected by an app for research purposes, The Financial Times reported. Over the weekend, The New York Times published an article saying the data analytics company harvested private information from more than 50M Facebook users in developing techniques to support Trump's 2016 election campaign. The social media giant released a statement later saying it has hired digital forensics firm Stroz Friedberg to conduct a comprehensive audit of Cambridge Analytica, which agreed to comply and afford the firm complete access to their servers and systems. In response, Cambridge Analytica said it "strongly denies" the claims made by media reports... Meanwhile, Newell Brands (NWL) shares fell 6.5% after it announced an agreement with Carl Icahn, who owns about 6.9% of shares. The company agreed to appoint four independent directors designated by Icahn, with Icahn agreeing to vote in favor of the company's proposed director slate at the upcoming annual meeting... In addition, Macy's (M) shares rose 1.3% after it said it will roll out Mobile Checkout nationwide to all full-line stores by the end of this year. In addition, an augmented reality furniture shopping experience will be incorporated into the Macy's app with a rollout beginning in April, the company said. MAJOR MOVERS: Among the notable gainers was Stewart Information Services (STC), which rose 4.7% after it agreed to be acquired by Fidelity National Financial (FNF) for about $1.2B in cash and stock. Also rising were shares of Heron Therapeutics (HRTX), which surged nearly 27% after the company said its completed Phase 3 studies of the investigational agent HTX-011 met all primary and key secondary endpoints. Pacira Pharmaceuticals (PCRX), which makes a competing drug, closed 0.7% lower. Among the noteworthy losers was Universal Display (OLED), which dropped 12.1% amid speculation Apple (AAPL) is producing its own device displays for the first time. Also lower was Hecla Mining (HL), which fell 13.5% after it agreed to acquire all outstanding shares of Klondex Mines (KLDX) for consideration of $462M with a mix of cash and shares of Hecla common stock and the newly formed company. INDEXES: The Dow fell 335.60, or 1.35%, to 24,610.91, the Nasdaq lost 137.75, or 1.84%, to 7,344.24, and the S&P 500 declined 39.09, or 1.42%, to 2,712.92.