Stocks are falling in afternoon trading Monday, led by declines in utilities and real estate companies. Eight of the 11 sectors of the Standard & Poor’s 500 index are lower. Janus Capital surges after announcing it is merging with another investment company.
KEEPING SCORE: The Dow Jones industrial average was down 53 points, or 0.3 percent, to 18,255 as of 2:05 p.m. Monday on Wall Street. The S&P 500 lost 8 points, or 0.4 percent, to 2,160. The Nasdaq composite declined 15 points, or 0.3 percent, to 5,297.
DRUGMAKER DOWNER: Merrimack Pharmaceuticals, which develops cancer drugs, slumped 39 cents, or 6 percent, to $5.96 after announcing that it would cut almost a quarter of its workforce and look for a new CEO.
JANUS JUMPS: Janus Capital surged $1.72, or 12 percent, to $15.73 after announcing it would merge with a London-based investment company, Henderson Group.
RETAIL ROCKET: Outdoor gear retailer Cabela’s shot up $7.99, or 14.5 percent, to $62.92 on news it is being bought by Bass Pro Shops for $4.5 billion.
THE QUOTE: Ernie Cecilia, chief investment officer at Bryn Mawr Trust, say of all the deals lately make sense because companies have few other ways of lifting results in a slow growth, low inflation world. “If you can’t raise prices, how else are you going to grow?”
BRITAIN UP: Britain’s FTSE 100 rose 1.2 percent thanks to a sharp drop in the pound, which helps the country’s exporters and multinationals. France’s CAC 40 rose 0.1 percent. German markets are closed for a holiday.
POUND DROP: The pound fell nearly 1 percent to $1.2868 following comments from Prime Minister Theresa May that the formal process by which Britain leaves the European Union will start by March next year. She signaled that she would prioritize controls on immigration over access to the European single market.
JOBS IN FOCUS: A number of economic reports are due out this week, culminating Friday with the government’s monthly jobs survey. Strong jobs numbers might encourage Federal Reserve to raise interest rates again this year.
ASIA’S DAY: Japan’s benchmark Nikkei 225 gained 0.9 percent and Hong Kong’s Hang Seng rose 1.2 percent. Australia’s S&P/ASX 200 rose 0.8. South Korean markets were closed.
ENERGY: Benchmark U.S. crude oil rose 25 cents to $48.49 a barrel while Brent crude, the international standard, rose 44 cents to $50.62 a barrel in London.
BONDS AND CURRENCIES: Bond prices fell. The yield on the 10-year Treasury note rose to 1.62 percent from 1.60 percent. The euro fell to $1.1217 from $1.1237 and the dollar rose to 101.55 yen from 101.41 yen.
METALS: Precious and industrial metals prices closed lower. Gold fell $4.40 to $1,312.70 an ounce, silver lost 35 cents to $18.87 an ounce and copper slipped 2 cents to $2.19 a pound.