Fly Intel: Wall Street's top stories for Thursday
Stocks opened in negative territory on the heels of Chinese stock markets having fallen nearly 3% overnight. The U.S. averages moved in a wide range in the early going, but were never able to gain upside momentum. The S&P was down just a few points as of 11 am ET before coming for sale and spending the rest of the session deep in negative territory. The Nasdaq has now lost ground in nine of the past ten sessions and is in the midst of one of its worst months of the year. Oil prices are lower despite the tension with Saudi Arabia and its threat to retaliate with oil to any sanctions the U.S. may impose from the death of Jamal Khashoggi. The price of crude oil settled down 1.5% at $68.65 a barrel. ECONOMIC EVENTS: In the U.S., initial jobless claims fell 5,000 to 210,000 in the week ended October 13. The Philly Fed index dipped 0.7 ticks to 22.2 in October, which was a little better than forecast. The leading economic indicators index rose 0.5% to 111.8 in September, which is a fresh record peak and a little better than forecast. Additionally, Treasury Secretary Steve Mnuchin announced that, after meeting with President Trump and Secretary of State Mike Pompeo, they have decided he will not be participating in the Future Investment Initiative summit in Saudi Arabia. COMPANY NEWS: Novartis (NVS) reported mixed Q3 results, with core EPS that narrowly topped consensus and revenue that missed the average forecast, while also backing its view of FY18 core operating income growth. Additionally, the company announced a deal to acquire Endocyte (ECYT) for $24 per share, or a total equity value of approximately $2.1B in cash. Endocyte shares rose 50% to $23.40 following the news, while Novartis shares closed 1% higher... Shares of Travelers (TRV) slid 1% despite the Dow member reporting Q3 earnings and revenue that topped estimates... Coca-Cola (KO) announced key changes in top leadership, naming Brian Smith to serve as president and COO, effective Jan. 1, 2019. John Murphy, who currently serves as president of the company's Asia Pacific group, will become executive vice president and CFO on March 16, 2019, following the retirement of Kathy Waller... Apple (AAPL) announced a Special Event that will be broadcast live from Brooklyn, New York on October 30. It is assumed that the company will be presenting a refreshed line up of iPads and Mac computers... Meanwhile, Netflix (NFLX) shares fell nearly 5% after NBC News reported that company executives have been bracing employees for a Wall Street Journal investigation that they are expecting to be similar to The New York Times' critical 2015 look into Amazon's (AMZN) corporate culture. MAJOR MOVERS: Among the noteworthy gainers was Acadia (ACHC), which rose 8% after Reuters reported that the company is in talks with private equity firms about selling itself. Also higher was Alcoa (AA), which gained 6% after reporting quarterly results. Among the notable losers was Apellis (APLS), which dropped 17% after the company voluntarily implemented a temporary pause in dosing in its Phase 3 geographic atrophy program. Also lower was Snap-On (SNA), which fell about 10% after reporting quarterly results. INDEXES: The Dow fell 327.23, or 1.27%, to 25,379.45, the Nasdaq lost 157.56, or 2.06%, to 7,485.14, and the S&P 500 declined 40.43, or 1.44%, to 2,768.78.