Market News: ARC Healthcare, Broadcom Corporation, Protective Life Corp.

Market News: ARC Healthcare, Broadcom Corporation, Protective Life Corp.
market news

Stock markets in the United States fluctuated today after the Institute of Supply Management (ISM) corrected the manufacturing index for May two times.

The Dow Jones Industrial Average (DJIA) and the S&P 500 ended the trading session with 0.16% and 0.07% gains, respectively. On the other hand, the NASDAQ declined 0.13%.

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The ISM originally reported that the manufacturing index for May declined from 54.9% to 53.2%. It first corrected its reading to 56% and then changed it again to 55.4%.  Economists surveyed by Bloomberg had forecast an increase to 55.5%.

The institute corrected its reading after discovering an error in the software program it used to calculate the manufacturing PMI last month. In a statement, Bradley J. Holcomb, chairman of the ISM Manufacturing Business Survey Committee, said, “We apologize for this error. We have recalculated and confirmed that the actual index indicates that the economy is accelerating. Our research team is analyzing our internal processes to ensure that this doesn’t happen again.”

Stephen Carl, principal and head equity trader at Williams Capital Group LP, told Bloomberg, “The correction improved market direction modestly. Going forward, you’re looking for expected improvement in the ISM number, so maybe this just adds to it. Overall, it wasn’t a big, meaningful change, but there was certainly a reaction in the market.”

U.S. Markets

  • Dow Jones Industrial Average (DJIA)- 16,743.63 (+0.16%)
  • S&P 500- 1,924.97 (+0.07 %)
  • NASDAQ- 4,237.20 (-0.13%)
  • Russell 2000- 1,129.32 (-0.46%)

European Markets

  • EURO STOXX 50 Price EUR- 3,247.80 (+0.10%)
  • FTSE 100 Index- 6,864.10 (+0.29%)
  • Deutsche Borse AG German Stock Index DAX- 9,950.12 (+0.07%)

Asia-Pacific Markets

  • Nikkei 225- 14,935.92 (-0.00%)
  • Hong Kong Hang Seng Index- 23,081.65 (+0.31%)
  • Shanghai Shenzhen CSI 300 Index- 2,156.46 (+0.06%)

Stocks in Focus

The stock price of American Realty Capital Healthcare Trust, Inc. (NASDAQ:HCT), also known as ARC Healthcare, gained 9.45% to close at $10.89 per share after announcing that Ventas, Inc. (NYSE:VTR) agreed to acquire all of its outstanding shares for $11.33 per share or $2.6 billion in cash and stock. Shares of Ventas dropped 2.8% to $64.93 per share today.

Shares of Broadcom Corporation (NASDAQ:BRCM) surged 9.32% to $34.84 per share after the company engaged the services of JPMorgan Chase & Co. (NYSE:JPM) to help in exploring strategic alternatives for its baseband unit. The communications chips maker also updated its outlook for its June quarter and forecast revenue to be in the range of $2 billion to $2.1 billion.

The stock value of Protective Life Corp. (NYSE:PL) climbed 11.87% to close at $58.51 per share. The upside on the stock was driven by reports that Dai-ichi Life Insurance Co Ltd (TYO:8750), the second-largest life insurer in Japan, is in discussions to acquire Protective Life for 500 billion yen ($4.9 billion).

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