By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Valeant jumps on deal news; oil, euro tumble
NEW YORK (MarketWatch) -- U.S. stocks were under pressure on
Monday as a slide in oil prices once again hit energy
companies.
A pickup in merger-and-acquisition activity Monday in the
pharmaceutical industry helped push health-care stocks higher.
The S&P 500 (SPX) was weighed down by losses in energy and
materials, while seven of the main 10 sectors were trading
lower.
The Dow Jones Industrial Average (DJI) retreated from its record
level reached on Friday. Two-thirds of its 30 member were trading
in the red. Boeing Co was the biggest decliner, while UnitedHealth
Group Inc. led gainers.
The Nasdaq Composite (RIXF) switched between small gains and
losses. Biotechs led the gains, lifted by a deal news.
Need to Know: Nasdaq at 5,000 isn't a pipe dream
(http://www.marketwatch.com/story/knocking-down-nasdaq-5000-as-us-dollar-sentiment-hits-extremes-2015-02-23)
News that eurozone ministers agreed to extend Greece's bailout
for four months
(http://www.wsj.com/articles/eurozone-approves-greece-bailout-extension-1424435121?mod=mktw)
had helped drive late gains for Wall Street on Friday. Still,
Greece must present a list of budget cuts and economic overhauls by
Monday evening for approval from its international creditors -- the
European Commission, the European Central Bank and the
International Monetary Fund.
Also read: Why Germany beat Greece in the battle of the bailout,
in five charts
(http://www.marketwatch.com/story/how-germany-is-walloping-greece-in-the-battle-of-the-bailout-in-5-charts-2015-02-20)
(http://www.marketwatch.com/story/how-germany-is-walloping-greece-in-the-battle-of-the-bailout-in-5-charts-2015-02-20)
Yellen week: U.S. investors will find plenty to take their minds
off Greece, though, as Fed Chairwoman Janet Yellen will give her
semiannual testimony on the economy and monetary policy to Congress
on Tuesday and Wednesday this week. Investors will be looking out
for any comments on rate-hike timing, in particular.
Market reaction to weaker-than-expected existing-home sales in
January was muted.
Read: Three things Yellen could say to surprise investors
(http://www.marketwatch.com/story/three-things-yellen-could-say-to-surprise-investors-2015-02-20)
Jim Reid, strategist at Deutsche Bank, said in a note that
recent payrolls data could mean a "more upbeat view" of the U.S.
economy, but its analysts were wondering if Yellen will make a case
to Congress that the time could be nearing for the Fed to start
policy normalization.
"When Yellen is about to speak, we tend to have a bias towards
thinking she'll be fairly dovish, and with inflation where it is
globally at the moment, this is likely to hold back any negative
shock tomorrow night," Reid said in a note to investors.
Economic preview: U.S. economy's growth not touching all the
bases
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)
(http://www.marketwatch.com/story/us-economys-growth-not-touching-all-the-bases-2015-02-22)Monday
deals: Valeant(VRX) shares surged after it said Sunday that it will
buy Salix
(http://www.marketwatch.com/story/valeant-pharmaceuticals-to-buy-salix-for-about-10-billion-2015-02-22-161035324)(SLXP)
for about $10 billion in cash, which will take it into a
multibillion-dollar market for drugs that treat stomach
disorders.
Bristol-Myers Squibb(BMY) announced on Monday an agreement to
buy privately-held biotechnology company Flexus Biosciences in a
deal that could be valued at up to $1.25 billion.
3M Co.(MMM) said Monday that it has entered into a definitive
agreement to buy Polypore International Inc.'s (PPO) separations
media business for a total purchase price of $1 billion
(http://www.marketwatch.com/story/3m-to-buy-polypore-unit-for-1-billion-2015-02-23).
Polypore shares jumped 12%, while 3M was flat.
Shares in Discovery Communications (DISCA) jumped, making it the
best performer on the S&P 500. Shares rose after news reports
on Sunday that 21st Century Fox was in talks to purchase the cable
operator. A Fox spokesperson denied the rumors, saying 'there is no
truth" in the report. 21st Century Fox was part of MarketWatch
parent News Corp. until being spun off in 2013.
Apple Inc.(AAPL) said Monday that it will invest EUR1.7 billion
($1.92 billion)
(http://www.marketwatch.com/story/apple-to-invest-19-billion-in-european-data-centers-2015-02-23-5912328)
to build two data centers in Europe that will run 100% on renewable
energy -- in County Galway, Ireland and central Jutland, Denmark.
Shares were 1% higher.
Earnings ahead:Dish Network Corp.(DISH)(DISH) shares rose 2%
after the company reported earnings of $2.04 a share and said its
chief executive officer Joseph Clayton will retire on March 31.
For more notable movers, read our Movers & Shakers column
(http://www.marketwatch.com/story/dish-dillards-express-scripts-earnings-in-focus-2015-02-23).
(http://www.marketwatch.com/story/dish-dillards-express-scripts-earnings-in-focus-2015-02-23)
(http://www.marketwatch.com/story/dish-dillards-express-scripts-earnings-in-focus-2015-02-23)Other
markets:European stocks
(http://www.marketwatch.com/story/european-stocks-higher-as-greek-bailout-extended-2015-02-23)
got a lift from news of Greece's bailout extension, while the euro
(EURUSD) fell 0.7% against the dollar after news that German
business confidence improved for a fourth straight month in
February, but less than expected.
In Asia, the Nikkei 225 index
(http://www.marketwatch.com/story/japan-stocks-advance-for-fourth-day-to-15-year-high-2015-02-23)
advanced for a fourth session to another 15-year high.
Oil prices (CLJ5) reversed an earlier gain, falling $1.8, or
3.5%, while gold (GCJ5) also fell about $3.9, to $1,201.20 an
ounce.
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