We're nearly five years removed from the "flash crash," but news of the arrest of a futures trader in the U.K. for allegedly conspiring to cause the decline dominated the market chatter this afternoon.
In the meantime, U.S. stocks were mixed on Tuesday. The Nasdaq Composite gained 0.4% on the session; while the Dow Jones Industrial Average and S&P 500 gave up earlier gains to fall 0.5% and 0.15%, respectively. Healthcare and consumer names rallied on Tuesday, while utilities and energy stocks lagged. Elsewhere, crude oil fell 2%.
Mylan (MYL) was the big winner of the session, gaining almost 9% and propelling the healthcare sector higher, after receiving an unsolicited $40 billion takeover offer from Israel-based Teva Pharmaceuticals (TEVA). Mylan previously made a $29 billion bid for generic drugmaker Perrigo (PRGO), which was unanimously rejected by the board of directors after today's close of trading.
Teva gained fractionally on Tuesday, and Perrigo shares lost 2%. Elsewhere, Harley Davidson (HOG) lost nearly 10%, after cutting the expected 2015 guidance for motorcycle unit sales.
In after-hours action, Chipotle (CMG) fell 3% as quarterly same-store sales fell short of expectations. Yahoo (YHOO) is also trading fractionally lower, after missing earnings expectations. On the other hand, Broadcom (BRCM) and Yum! Brands (YUM) are each moving 4% higher, after posting better-than-expected quarterly earnings.
Looking ahead to Wednesday morning, Boeing (BA), Coca-Cola (KO), EMC (EMC) and McDonald's (MCD) headline the earnings calendar. On the economic front, we'll get a look at weekly mortgage applications and the FHFA house price index before the opening bell.
David Peltier is the portfolio manager for Stocks Under $10 and Dividend Stock Advisor. Test drive with a free trial.
