Stocks slip off record highs as Microsoft nabs Nuance in $19.7B deal
Microsoft seals $19.7B deal for Nuance Communications
U.S. equity markets slid Monday as investors readied for the start of earnings season and took in a major deal from Microsoft Corp.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 51848.9 | +182.06 | +0.35% |
| SP500 | S&P 500 | 7358.22 | -7.24 | -0.10% |
| I:COMP | NASDAQ COMPOSITE INDEX | 25476.63562 | -110.40 | -0.43% |
The Dow Jones Industrial Average fell 54 points, or 0.16%, while S&P 500 and Nasdaq Composite were lower by 0.02% and 0.36%, respectively. Both the Dow and the S&P finished at all-time highs on Friday as the Nasdaq escaped bear-market territory.
In M&A news, Nuance Communications is being acquired by Microsoft in a $19.7 billion deal, including debt. The all-cash transaction will pay Nuance shareholders $56 per share, a 23% premium to Friday’s closing price. The deal is the second-largest for Microsoft, behind its $26 billion purchase of LinkedIn in 2016.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NUAN | NO DATA AVAILABLE | - | - | - |
| MSFT | MICROSOFT CORP. | 365.46 | -8.48 | -2.27% |
In addition, earnings season is set to kick off on Wednesday with big banks Goldman Sachs Group Inc., JPMorgan Chase & Co. and Wells Fargo & Co. set to release their quarterly results.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 333.45 | -0.69 | -0.21% |
| GS | THE GOLDMAN SACHS GROUP INC. | 1,076.91 | -17.53 | -1.60% |
| WFC | WELLS FARGO & CO. | 84.30 | +0.17 | +0.20% |
Elsewhere, Uber Technologies Inc. reported gross bookings hit a record high in March as ride hailings snapped back to pre-pandemic levels and food delivery more than doubled from the previous year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UBER | UBER TECHNOLOGIES INC. | 73.85 | +4.18 | +6.00% |
| LYFT | LYFT INC. | 14.40 | +0.58 | +4.20% |
Meanwhile, Alibaba Group Holdings was fined a record 18 billion Chinese yuan ($2.75 billion) by Chinese regulators for anticompetitive behavior. However, the fine was smaller than feared.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BABA | ALIBABA GROUP HOLDING LTD. | 99.80 | -2.80 | -2.73% |
In commodities, West Texas Intermediate crude oil climbed 38 cents or $59.70 per barrel and gold slipped $12.10 to $1,731.20 an ounce.
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Overseas markets were lower.
In Europe, Germany’s DAX 30 and France’s CAC 40 both fell 0.13% while Britain’s FTSE 100 lost 0.39%.
Asian markets were weaker across the board with China’s Shanghai Composite index down 1.09%, Hong Kong’s Hang Seng index declining 0.86% and Japan’s Nikkei 225 sliding 0.77%.