Stocks opened in negative territory and remained there for most of the session. The averages moved in a narrow range and stayed close to the flat line as the market digested its recent gains. The market was supported by the Q4 GDP report and Chicago Purchasing Manager’s report, which as both came in above expectations, and held up well in the face of the disappointing conclusion to the nuclear summit with North Korea. The President walked away from the bargaining table when he felt a “good” deal could not negotiated.
ECONOMIC EVENTS: In the U.S., Q4 GDP posted a 2.6% rate of growth, decelerating from 3.4% in Q3 but topping consensus expectations. The Chicago PMI bounced 8.0 points to 64.7 in February, more than recovering from a 7.1 point drop in January. Initial jobless claims rose 8,000 to 225,000 in the week ended February 23.
TOP NEWS: Shares of Celgene (CELG) fell nearly 9% after a major Bristol-Myers Squibb (BMY) shareholder said it would not support the acquisition. Wellington Management said it thinks Bristol-Myers shareholders are accepting too much risk and that Celgene shareholders are getting the drugmaker's shares at well below implied asset value. Another shareholder, Starboard Value, said it also opposes the deal.
HP Inc. (HPQ) declined 17% after the company reported first quarter results that prompted BofA analyst Wamsi Mohan to downgrade the stock two notches, to Underperform from Buy. His prior thesis was built on expectations for stability in high margin print supplies, which he now has lower confidence in, said the analyst, who lowered his price target on HP Inc. shares to $19 from $30.
MAJOR MOVERS: Among the noteworthy gainers was Horizon Pharma (HZNP), which rose 33% after the company reported its Phase 3 confirmatory trial evaluating teprotumumab for the treatment of active thyroid eye disease met its primary endpoint and all secondary endpoints. Also higher were JD.com (JD) and Monster Beverage (MNST), which gained a respective 7% and 9% after reporting quarterly results.
Among the notable losers was Box (BOX), which fell 19% after the company's "very disappointing" quarterly report prompted downgrades of the stock at Rosenblatt and KeyBanc. Also lower after reporting quarterly results were Booking Holdings (BKNG) and Itron (ITRI), which fell 11% and 14%, respectively.
INDEXES: The Dow lost 69.16, or 0.27%, to 25,916.00 , the Nasdaq gained/dropped 21.98, or 0.29%, to 7,532.53 , and the S&P 500 declined 7.89, or 0.28%, to 2,784.49 .
Bought by BMY
-7.92 (-8.70%)
Bristol Myers
+0.7 (+1.37%)
HP Inc.
-4.11 (-17.25%)
Horizon Therapeutics
+7.17 (+32.81%)
JD.com
+1.73 (+6.66%)
Monster Beverage
+5.17 (+8.81%)
Box
-4.62 (-18.58%)
Booking Holdings
-211.45 (-11.09%)
Itron
-8.55 (-13.89%)