US shares dropped, with the Standard & Poor’s 500 Index plunging for the first time in seven straight sessions, as manufacturing stocks dropped and investors assessed data showing home prices soared at slowed rate.
General Electric Co dropped 1% after landing the $17 billion acquisition of Alstom SA’s assets. FMC Corp lost 3.9% after revising downwards its 2014 profits outlook. Integrys Energy Group Inc added 13% on news that Wisconsin Energy Corp would pay $5.7 billion for the company. Micro Systems advanced 3.3% as it received an offer from Oracle Corp to acquire it for $68 per share.
The S&P 500 dropped 0.1% to 1,961.27 as of 12:53 pm in New York as the gauge of stocks remained on course to end its 6-day rally. The Dow Jones Industrial Average was down 30.47 points or 0.2% to 16,916.61. Both indexes closed last week at all-time highs. Volume of shares exchanged in the S&P 500 was 2.6% lower than the average for the past 30 days at that particular time of the day.
According to ABC, Lululemon added $1.36 or 3.4% to hit $41.53 on reports by the Wall Street Journal that the firm’s founder was engaging Golman Sachs to overhaul the board of the yoga clothing company. Lululemon has declined 30% this year.
“You’re sitting up at all-time highs and you do have a geopolitical situation remaining out there that’s weighing on the market. We got on balance in the U.S. with some good economic numbers. It continues to tell the story of a snap back in second quarter GDP,” Bill Stone of PNC Wealth Management told Bloomberg in a phone interview.
The S&P 500 added 1.4% last week, posting the highest surge in two months after hitting an all-time high of 1,962.87 at the close. The Dow average also hit a record high at the close.
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