Stocks wipe out gains after Dow touches record high

Square Inc. agreed to buy Australia-based Afterpay for about $29B in an all-stock deal

U.S. equity markets finished mixed Monday as investors digested a trio of corporate deals and more earnings and looked ahead to the possibility of additional fiscal stimulus. 

The Dow Jones Industrial Average declined 99 points, or 0.28%, while the S&P 500 index slipped 0.19% and the Nasdaq Composite ticked up 0.06%. The Dow had gained as many as 257 points earlier in the session, hitting an intraday record high, before rolling over. Monday's selling put the S&P 500 on track to snap its six-month winning streak. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34798 +33.18 +0.10%
SP500 S&P 500 4455.48 +6.50 +0.15%
I:COMP NASDAQ COMPOSITE INDEX 15047.699032 -4.54 -0.03%

The Senate on Sunday unveiled a $1 trillion bipartisan infrastructure plan that would provide cash for roads, bridges, broadband and other infrastructure. 

Meanwhile, Senate Democrats are putting the finishing touches on a $3.5 trillion package that would fund so-called human infrastructure like education, child care and climate change. The plan would need to pass via budget reconciliation to avoid a Republican filibuster.  

Senate Majority Leader Chuck Schumer of New York said he wants both bills to be voted on before Congress goes on recess on Aug. 6. 

STOCK MARKET FACES ELUSIVE PULLBACK AS CORONAVIRUS, ECONOMIC HEADWINDS SWIRL

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34798 +33.18 +0.10%
SP500 S&P 500 4455.48 +6.50 +0.15%
I:COMP NASDAQ COMPOSITE INDEX 15047.699032 -4.54 -0.03%

In stocks, Square Inc. agreed to buy Australia-based Afterpay for about $29 billion in an all-stock deal. The deal, which represents a 31% premium to Afterpay’s closing value on Friday, will pay shareholders 0.375 shares of Square for each Afterpay share they own.  

Ticker Security Last Change Change %
SQ SQUARE, INC. 262.50 -4.22 -1.58%

In other deal news, Foot Locker Inc. said it would buy two smaller shoe retailers for a total of about $1.1 billion. The company will pay $750 million for California-based WSS and $360 million for Japanese streetwear company Atmos, according to a report from The Wall Street Journal. 

Ticker Security Last Change Change %
FL FOOT LOCKER, INC. 48.23 -3.72 -7.16%

Defense company Parker-Hannifin Corp. agreed to buy British rival Meggitt for 6.3 billion pounds ($8.8 billion). The deal’s price tag carries a 70.5% premium to where Meggitt shares closed last week. 

Ticker Security Last Change Change %
PH PARKER-HANNIFIN CORP. 287.84 -3.26 -1.12%

Meanwhile, Pfizer Inc. and Moderna Inc. are raising prices for COVID-19 vaccines in Europe, according to the Financial Times. 

Ticker Security Last Change Change %
PFE PFIZER INC. 43.94 -0.25 -0.57%
MRNA MODERNA, INC. 430.14 -24.46 -5.38%

Elsewhere, General Electric co. executed a 1-for-8 reverse stock split which will reduce the number of shares outstanding to about 1.1 billion. The reverse split sent GE shares to a price of $103.60 apiece.

Ticker Security Last Change Change %
GE GENERAL ELECTRIC CO. 103.80 +0.92 +0.89%
RACE FERRARI NV 217.46 +0.34 +0.16%

In earnings, Ferrari N.V. reported mixed quarterly results and raised its full-year industrial free cash flow guidance. Incoming CEO Benedetto Vigna, who will shift the company’s focus to electrification and software, will take the reins in September. 

In commodities, West Texas Intermediate crude oil fell $2.69 to $71.26 barrel and gold edged up $5.50 to $1,818.10 per ounce. 

Overseas markets rallied across the board. 

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France's CAC 40 paced the gains in Europe, trading up 0.95%, while Britain's FTSE 100 and Germany’s DAX 30 were higher by 0.7% and 0.16%, respectively. 

In Asia, China’s Shanghai Composite index climbed 1.97%, Japan’s Nikkei 225 rose 1.82% and Hong Kong’s Hang Seng index advanced 1.06%.