Stocks slide for 2nd session, Boeing and energy tumble

Canadian National offered $325 per share for Kansas City Southern

U.S. equity markets fell Tuesday for the second day as investors assessed a mega-deal in the rail industry and sifted through a slew of earnings reports. 

The Dow Jones Industrial Average fell 256 points, or 0.75%, while the S&P 500 and the Nasdaq Composite were weaker by 0.68% and 0.92%, respectively. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34327.79 -54.34 -0.16%
SP500 S&P 500 4163.29 -10.56 -0.25%
I:COMP NASDAQ COMPOSITE INDEX 13379.047501 -50.93 -0.38%

In stocks, Canadian National Railway offered $30 billion for Kansas City Southern, a 21% premium to an agreement reached last month with Canadian Pacific Railway Ltd. The offer, if accepted, will pay Kansas City Southern shareholders $325, including $200 a share in cash and 1.059 Canadian National shares for each Kansas City Southern share they own.

Ticker Security Last Change Change %
KSU KANSAS CITY SOUTHERN 297.17 -11.71 -3.79%

Elsewhere, Boeing Co. announced CFO Greg Smith will retire in July and raised the mandatory retirement age for CEO Dave Calhoun to 70 from 65. Calhoun, who took over as CEO following Dennis Muilenburg's dismissal, turned 64 on Sunday. 

BOEING BOARD EXTENDS CEO CALHOUN'S TENURE

Ticker Security Last Change Change %
BA THE BOEING CO. 227.86 -0.49 -0.21%

THE RECORD STOCK MARKET IS SHOWING SIGNS OF CRACKING

In earnings, Dow component Johnson & Johnson reported $100 million in sales from its single-shot COVID-19 vaccine that was last week put on hold by the U.S. Food and Drug Administration due to blood clotting concerns. Both earnings and revenue topped Wall Street estimates. 

Ticker Security Last Change Change %
JNJ JOHNSON & JOHNSON 170.51 +0.32 +0.19%

Fellow Dow member Proctor & Gamble Co. beat on both the top and bottom lines amid strong demand for its cleaning products. The company plans to raise prices by mid-to-high single-digit percentages for some products beginning in September.

Ticker Security Last Change Change %
PG PROCTER & GAMBLE CO. 137.80 -0.07 -0.05%
IBM INTERNATIONAL BUSINESS MACHINES CORP. 145.03 +0.43 +0.30%
TRV THE TRAVELERS COS., INC. 160.19 -0.42 -0.26%

Rounding out Dow earnings, International Business Machine Corp. topped estimates as its cloud-computing unit fueled the strongest quarterly sales growth in over two years and insurer Travelers Companies Inc. exceeded expectations despite winter storms causing casualty losses to more than double from a year ago. 

Ticker Security Last Change Change %
UAL UNITED AIRLINES HOLDINGS 56.57 +1.29 +2.33%

Meanwhile, United Airlines Holdings Inc. posted a larger-than-expected adjusted net loss of $2.4 billion as the company grappled with higher jet fuel prices and reduced demand caused by COVID-19. The airline expects EBITDA to turn positive later this year despite international travel demand remaining 70% below 2019 levels. 

Netflix Inc. will report its quarterly results after the closing bell. Shares are little changed so far this year. 

Ticker Security Last Change Change %
NFLX NETFLIX, INC. 488.94 -4.43 -0.90%

In commodities, West Texas Intermediate crude oil rose 17 cents to $63.55 per barrel and gold rallied $7.90 to $1,777.30 an ounce.   

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Overseas markets were mostly lower. 

France’s CAC 40 paced the decline in Europe, trading down 2.09%, while Britain’s FTSE 100 and Germany’s DAX 30 were weaker by 2% and 1.55%, respectively. 

In Asia, Japan’s Nikkei 225 plunged 1.97%, China’s Shanghai Composite index slipped 0.13% and Hong Kong’s Hang Seng index ticked up 0.1%.