The stock markets in the United Stated rebounded primarily due to the gains of equities in the consumer and staples sector, which offset the negative impact of the reports on the merger decisions of Sprint Corporation (NYSE:S) and Twenty-First Century Fox Inc (NASDAQ:FOX).

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Commenting on the market trends, Sam Turner, a fund manager at Riverfront Investment Group told Bloomberg, “There’s going to be a lot of noise intraday going forward, but we still see the fundamental trend moving higher.” He added, We might slip back to flush out the remaining weak hands, but we’re recommending buying this dip.”

Yesterday, the stock markets declined due to concerns regarding the potential escalation of conflict in Ukraine as Russian President Vladimir Putin showed retaliation on the new economic sanctions imposed by the European Union and the United States.

Putin said the “political tools of economic pressure are unacceptable and run counter to all norms and rules.” Russia signed a $20 billion trade agreement with Iran wherein both countries agreed to “cooperate in the oil-gas industry, construction of power plants, grids, supply of machinery, consumer goods and agriculture products.”

Today, Russia announced that it will ban all imported food products from the United States and all fruits and vegetables from Europe.

The NATO also reported that Russia increased the number of combat-ready troops to approximately 20,000 on Ukraine’s border, a sign that the battle on the ground will potentially escalate. In a statement, NATO spokesperson Oana Lungescu said, “We’re not going to guess what’s on Russia’s mind, but we can see what Russia is doing on the ground – and that is of great concern. Russia has amassed around 20,000 combat-ready troops on Ukraine’s eastern border.”

U.S. Markets

  • Dow Jones Industrial Average (DJIA)- 16,443.34 (+0.08%)
  • S&P 500- 1,920.24 (+0.00%)
  • NASDAQ- 4,355.05 (+0.05%)
  • Russell 2000- 1,125.55 (+0.35%)

European Markets

  • EURO STOXX 50 Price EUR- 3,050.37 (-0.71%)
  • FTSE 100 Index- 6,636.16 (-0.69%)
  • Deutsche Borse AG German Stock Index DAX- 9,130.04 (-0.65%)

Asia-Pacific Markets

  • Nikkei 225- 15,159.79 (-1.05%)
  • Hong Kong Hang Seng Index- 24,584.13 (-0.26%)
  • Shanghai Shenzhen CSI 300 Index- 2,363.22 (-0.26%)

Stocks in Focus

The stock price of Sprint Corporation (NYSE:S) declined almost 19% to $5.90 per share driven by a report that it will no longer pursue its intention to acquire T-Mobile US Inc (NYSE:TMUS) due to extreme regulatory hurdles, according to people familiar with the matter. The company also appointed Marcelo Claure as new chief executive officer.

The shares of T-Mobile US Inc (NYSE:TMUS) dropped more than 8% to $31.06 per share today. Aside from the report that Sprint is abandoning its takeover bid, the company was also impacted by the news that it rejected the request of Iliad SA (EPA:ILD) for information. The French company’s $15 billion bid is reportedly considered by T-Mobile as “dead on arrival.”

Twenty-First Century Fox Inc (NASDAQ:FOX) also abandoned its takeover bid for Time Warner Inc (NYSE:TWX). FOX shares climbed more than 3% to 32.33 per share while Time Warner’s stock price tanked more than 12% to $74.24 per share.

 

Walgreen Company (NYSE:WAG) declined more than 14% to $59.21 per share after the company revealed that it would pay approximately $15.3 billion to acquire the remaining 55% stake in Alliance Boots it does not already owns. The company said it would not use the transaction to transfer its tax address overseas.