Dow, S&P 500 and Nasdaq Decline as M&A Fails to Push Wall Street Higher - TheStreet

By Joseph Woelfel / May 01, 2018 / www.thestreet.com / Article Link

Here Are 3 Hot Things to Know About Stocks Right Now

The Dow Jones Industrial Average  dropped 148 points on Monday and closed out April more than 2,400 points below its all-time high set on Jan. 26. The Dow has now declined 2.25% in 2018.Oil prices rose on Monday after Israeli Prime Minister Benjamin Netanyahu said Iran lied about its nuclear ambitions. But shares of Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX) declined.The Nasdaq closed lower on Monday. But the tech-heavy index finished higher in April and is up 2.36% so far in 2018.

Wall Street Overview

Stocks finished lower on Monday, April 30, as Wall Street processed a mega-merger between Sprint Corp. ( S) and T-Mobile US Inc. ( TMUS) and as Walmart Inc. ( WMT) said it would sell its supermarket business in the U.K.

The Dow Jones Industrial Average was down 148 points, or 0.61%, to 24,163. The S&P 500 fell 0.82% and the Nasdaq declined 0.75%.

The Personal Consumption Expenditures price index rose 2% year over year in March, up from 1.7% in February. The 2% gain in the PCE met the Federal Reserve's inflation target.

Crude oil prices rose 47 cents to $68.57 after Israeli Prime Minister Benjamin Netanyahu gave a televised address in which he claimed that Iran lied about developing nuclear weapons. Exxon Mobil declined 0.01% while Chevron dropped 1.19%.  

The Fed begins a two-day policy meeting on Tuesday, May 1, but investors don't expect any changes in the key Fed Funds rate, which currently sits at 1.75%, until the central bank's meeting in June.

Shares of Sprint fell 13.7% to $5.61 on Monday, suggesting investors may be cautiously approaching the company's proposed $26.5 billion merger with T-Mobile amid concerns regulators could block a deal that would reduce competition in the country's wireless network space. T-Mobile shares declined 6%.

Sprint was valued at $6.62 a share in the blockbuster deal with T-Mobile, based on a ratio of 0.10256 a Sprint share for each T-Mobile US share, which the companies said was based on Friday's closing prices of $6.50 and $64.52, respectively. However, Bloomberg said the ratios were based on April 9 closing levels, suggesting the tie-up values Sprint at $6.12 a share.

J Sainsbury PLC (JSAIY) agreed to buy Walmart Inc.'s U.K. unit, Asda Group Ltd., for ?7.3 billion ($10.1 billion) in cash-and-stock in a deal that will create Britain's largest supermarket chain.

The deal would mark a major change in strategy for Walmart Inc. (WMT) in the United Kingdom after years of declining market share. Walmart shares rose 1.3%.

Walmart Agrees to Combine UK Division Asda With Sainsburys in $10 Billion Merger

McDonald's Corp. (MCD) jumped 5.7% after the hamburger giant reported first-quarter adjusted profit of $1.79 a share, ahead of expectations of $1.67, and global same-store sales rose 5.5%. An increase of 2.9% in U.S. same-store sales met analysts' forecasts.

Marathon Petroleum Corp. ( MPC) confirmed it will buy pipeline and refining company Andeavor ( ANDV) in a deal with a total equity value of $23.3 billion.

Under the deal, Andeavor shareholders can choose 1.87 shares of Marathon Petroleum stock, or $152.27 in cash, which represents a premium of 24.4% to Andeavor's closing price on Friday of $122.38. Andeavor rose 13% to $138.32 on Monday.

Marriott Vacations Worldwide Corp. (VAC) agreed to rival vacation timeshare company ILG Inc. (ILG) for about $4.7 billion in cash and stock. ILG was up 4.5%. 

Prologis Inc. (PLD) agreed to buy rival logistics-property owner DCT Industrial Trust Inc. (DCT) for $8.4 billion, including debt. The deal values DCT at $67.91 a share. DCT shares gained 11%.

Allergan PLC (AGN)   fell 5% after the drugmaker posted first-quarter earnings and sales that beat Wall Street expectations.

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Arconic Inc. (ARNC) fell 20% on Monday after the lightweight metals manufacturer reported relatively in-line quarterly results and lowered its earnings outlook for the year.

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