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Stock slip on weak earnings and world economy

Specialist Neil Gallagher, left, and trader Thomas Lee

Specialist Neil Gallagher, left, and trader Thomas Lee work on the floor of the New York Stock Exchange on Friday, Feb. 26, 2016. Credit: AP / Richard Drew

A midday rally fizzled Monday and stocks slipped at the close as weak earnings for drugmakers put health care stocks under pressure. Global stocks were mixed after a meeting of leading economic policymakers ended without any specific moves to shore up the world economy.

At the close on Wall Street, the Dow Jones industrial average was down 123.5 points, about 0.7 percent, at 16,516.5. The Standard & Poor’s 500 index gave up 15.8 points, about 0.8 percent, to 1,932.2. The Nasdaq composite lost 32.5 points, about 0.7 percent, to 4,557.9.

CRUDE ENERGY: As markets closed, benchmark U.S. crude oil rose 98 cents to $33.76 a barrel in trading on the New York Mercantile Exchange. Brent crude, the global benchmark, added 87 cents, or 2.5 percent, to $35.97 a barrel in London.

DRUGMAKERS TUMBLE: Endo International lost $11.19, or 21.1 percent, to close at $41.75 after the company said it will wind down its Astora women’s health business and set aside $834 million to cover costs from possible product liability lawsuits over vaginal mesh implants, which have been linked to thousands of injuries.

Valeant Pharmaceuticals slid after the company withdrew its financial forecasts and said it’s not ready to release preliminary fourth-quarter results. The stock gave up $14.85, about 18.4 percent, to close at $65.80.

OVERSEAS NEWS: Policymakers at a weekend meeting of the Group of 20 rich and developing countries promised to use “all tools” at their disposal to bolster weak global growth, but they didn’t announce any specific moves. Some relief emerged with the news that China’s monetary authorities had cut the amount of deposits that banks have to keep in reserve at the central bank. That should free up cash for banks to lend. The government also guided the yuan lower.

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