Post Market Update
Stocks that were active in the U.S. trading on Wednesday include Mead Johnson Nutrition CO (NYSE:MJN), EXCO Resources Inc (NYSE:XCO), Linn Energy LLC (NASDAQ:LINE), Walgreen Company (NYSE:WAG) and Entropic Communications Inc. (NASDAQ:ENTR).
- U.S.: Dow Jones: 15,020.07 (+0.59 percent), S&P 500: 1,616.78 (+0.17 percent), Nasdaq: 3,448.13 (+0.43 percent)
- World Markets: Shanghai: 1,994.27 (-0.61 percent), Nikkei 225: 14,055.56 (-0.31 percent), Hang Seng Index: 20,147.31 (-2.48 percent), TSEC: 7,911.42 (-1.30 percent), FTSE 100: 6,229.87 (-1.17 percent), EURO STOXX 50: 2,570.76 (-1.25 percent), BSE Sensex: 19,177.76 (-1.47 percent)
- Metals: Gold: $1,253.50 (+0.81 percent), Silver: $19.75 (+2.28 percent), Platinum: $1,352.50 (-1.12 percent)
- Currency: EUR/USD: 1.2971 (-0.05 percent), USD/JPY: 99.70 (-0.88 percent), GBP/USD: 1.5263 (+0.72 percent), USD/CAD: 1.0521 (-0.19 percent), USD/CNY: 6.1308 (-0.04 percent), AUD/USD: 0.9068 (-0.85 percent)
- 10 year U.S. Treasury: 2.47 percent (+0.01), 30 year U.S. Treasury: 3.48 percent (+0.02)
Market & Economy Update
Data showed that jobless claims fell for the second consecutive week to 343,000 last week as private employers hired more workers than expected. Concerns over the renewed political turmoil in Portugal pushed global shares down. However, U.S. stocks posted gains after a string of positive economic data yesterday. The Dow Jones Industrial Average rose 73.72 points to 15,006.13, the S&P 500 Index inched up 2.36 points to 1,616.44, while Nasdaq jumped 14.39 points to 3,447.79.
Stocks In Focus
Mead Johnson Nutrition CO (NYSE:MJN)
Mead Johnson shares came under pressure after reports that China has launched an investigation into international infant formula companies. Chinese authorities suspect that Mead Johnson and other companies were involved in price fixing. Mead Johnson and other infant-formula makers like Nestle, Danone are being investigated by China’s National Development and Reform Commission. Mead Johnson shares plunged 9.83 percent to $67.56.
EXCO Resources Inc (NYSE:XCO)
EXCO has announced to acquire Chesapeake Energy's assets in the Haynesville Shale and Northern Eagle Ford Shale through one of its subsidiaries for $1 billion. EXCO expects to close the deal in the current quarter. Shares soared 8.20 percent to $8.06.
Linn Energy LLC (NASDAQ:LINE)
Linn Energy is being investigated by the Securities and Exchange Commission. The regulators said they have launched an informal investigation into the company's hedging strategies, accounting practices and Linn's planned merger with merger Berry Petroleum. Shares skidded 15.82 percent to end the session at $22.79.
Walgreen Company (NYSE:WAG)
The drugstore chain said that the same-store customer traffic continued to decline in June. Though same store sales jumped 2.3 percent due to consistent improvement in Walgreen's pharmacy section. Analysts were expecting a 3.1 percent increase in same store sales. Shares plunged 0.79 percent to close the trading session at $44.11.
Entropic Communications Inc. (NASDAQ:ENTR)
Entropic has announced to slash its workforce by 10 percent globally. The company is undergoing massive restructuring. The chipmaker expects second quarter sales to come at the lower side of its original forecast. Entropic said the restructuring would generate $9 million in annual savings. Shares plunged 4.17 percent to end the session at $4.14.