Market News: Mylan, Perrigo, Fossil Group, Nordstrom

Market News: Mylan, Perrigo, Fossil Group, Nordstrom
market news

The stock markets in the United States decline again due to the retail sales data, which was below expectations for the month of October. Investors are concern about the U.S. economic growth as the Federal Reserve is considering increasing interest rates next month.

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The Department of Commerce reported that the retail sales climbed 0.1% last month. Economist expected a 3% increase. On the other hand, the Department of Labor showed that the producer price index (PPI) declined 0.4% last month. Market observers suggested that the inflation will likely remain weak based on the report.

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TD Securities Chief Economist Millan Mulraine told Reuters, “The weak reports will provide some cause for caution at the Fed, and while they are unlikely to change the prevailing bias for a December liftoff, they could add to the case for a shallower tightening path thereafter.”

Yesterday, Fed officials commented that an interest rate hike is possible this year. William Dudley, president of the Federal Reserve Bank of New York, would probably normalize monetary policy once it is satisfied with the economic conditions.


Policy makers are becoming confident to raise rates because of the continued improvement in the labor market.

Jim Dunigan, chief investment officer at PNC Wealth Management, was quoted by the Wall Street Journal saying, “Every time the market comes face to face with the fact that we will no longer have zero interest rates, it struggles.”

U.S. Markets

  • Dow Jones Industrial Average (DJIA) – 17, 246.11 (-1.16%)
  • S&P 500- 2,023.20 (-1.11%)
  • NASDAQ- 4,927.88 (-1.54%)
  • Russell 2000- 1,147.90 (-0.60%)

European Markets

  • EURO STOXX 50 Price EUR- 3,360.65 (-0.80%)
  • FTSE 100 Index- 6,118.28 (-0.98%)
  • Deutsche Borse AG German Stock Index DAX- 10,708.40 (-0.69%)

Asia-Pacific Markets

  • Nikkei 225- 19,596.91 (-0.51%)
  • Hong Kong Hang Seng Index- 22,396.14 (-2.15%)
  • Shanghai Shenzhen CSI 300 Index- 3,746.24 (-1.29%)

Stocks in Focus

The stock price of Mylan surged more than 12% to $48.71 per share. The company failed to convince a majority of the shareholders of Perrigo to approve its $26 billion takeover proposal.

The ordinary shares of Perrigo declined more than 7% to $145.01 per share. Only 40% of the company’s shareholders voted for Mylan’s proposal. The requirement is 50% shareholder approval for the company to go ahead with the transaction.

Fossil Group plummeted more than 35% to $32.77 per share. Investors were disappointed with the company sales performance. The company posted third-quarter earnings of $1.19 per share, higher than the $1.13 per share expected by analysts. However, its $771.30 million in sales were below the $796.36 million consensus estimate.

The shares of Nordstrom fell almost 15% to $54.01 per share. The company reported a 43% decline in third-quarter earnings to $0.42 per share from $0.73 per share in the same period last year. Analysts expected the company to deliver earnings of $0.72 per share.


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