US Stocks Basically Flat as Oil Breaks Losing Streak
New York (Dec 14) The S&P500 was up 0.13%, the Dow Jones Industrial Average added 0.29%, and the Nasdaq climbed 0.12%. However, near the close today all indices were basically flat.
Crude oil rebounded from its worst weekly performance of the year last week to trade higher. The commodity has been under pressure after the Organization of Petroleum Exporting Countries opted to keep production at record highs even as demand falters. West Texas Intermediate crude added 1.9% to $36.31 a barrel, closing in the green for the first time in seven sessions.
Federal Reserve members will meet on Tuesday with an announcement Wednesday afternoon. The Fed is likely to hike rates at the conclusion of the meeting, the first move higher in nearly a decade. Odds for a hike were boosted after a better-than-expected jobs report for November that was released earlier this month.
"The focus will be less on what the Fed does and more on what they say about the future path of rates," said TD Securities analysts in a note. "In her post announcement press conference, [Chair Janet] Yellen will have significant latitude to shift the focus away from the actual liftoff in rates and towards the "gradual" and "data dependent" path for the policy rate. This she has deftly accomplished in the past, and our expectation is for her to attempt to do the same next week."
Apple (AAPL - Get Report) shares were 1.2% lower after Morgan Stanley analysts predicted iPhone sales would decline by around 3% in 2016. The firm maintained an "overweight" rating on the stock but cut its price target by $9 to $143.
Newell Rubbermaid (NWL - Get Report) reached a deal worth $13 billion to buy Jarden (JAH - Get Report) for cash and stock. The transaction would create a $16 billion consumer goods company. It will be named Newell Brands. Jarden shares rose 3%. Newell Rubbermaid shares fell 7.2%.
Cheniere Energy (LNG - Get Report) replaced Charif Souki, the company's chairman and CEO, just days after activist investor Carl Icahn boosted his stake in the company. Board member Neal Shear was named interim president and CEO, while board member G. Andrea Botta was appointed chairman. The stock fell slightly in premarket trading.
Alibaba (BABA - Get Report) disclosed that it paid $266 million for the South China Morning Post and other media assets of SCMP Group, an acquisition it announced last week. The Hong Kong-based media company said it decided to sell as traditional publishing faces an "uncertain" future.
AstraZeneca (AZN) is in talks to acquire privately-held Acerta Pharma. Reports indicated the company could pay more than $5 billion for the drugmaker in a deal largely focused on its pivotal blood cancer drug.
Micron (MU) agreed to buy the remaining shares it does not already own of Inotera Memories. The two companies have partnered for seven years. The deal is valued at $3.2 billion and will see Micron assume $2.5 billion in debt.
Source: TheStreet
