Ahead of Wednesday's Federal Reserve press conference, in which Fed Chair Janet Yellen is expected to announce a decision on raising the interest rate, all three U.S. indices were down during midday trading Tuesday.
Shares of the gun maker Smith & Wesson (SWHC) were down by more than 5% as President Obama spoke about the recent massacre in Orlando, Fla. This is the reverse from what traders saw a day ago as shares climbed more than 9% on Monday in the aftermath of the shooting. The roller-coaster share ride follows conflicting reports regarding the gunman's motives and whether they are rooted in terrorism.
Whole Foods Market (WFM) shares sank by more than 2% after receiving a warning letter from the U.S. Food and Drug Administration. The agency found serious violations of regulations for manufacturing and packaging, among others, at the company's plant in Massachusetts. In the letter, the FDA said it saw ready-to-eat pasta being mixed in an area where condensation was dripping from the ceiling onto the surface below. The agency also saw an employee assembling bulk cartons and packaging quinoa cakes without washing hands or changing gloves in between tasks. During several inspections in February, the FDA also found listeria and other severe food-safety violations.
Shares of Salesforce.com (CRM) were down slightly in trading Tuesday. This comes after Microsoft's (MSFT) $26.2 billion deal for LinkedIn (LNKD), which may make Salesforce the next possible merger target. A potential buyer for Salesforce could be Oracle (ORCL). The technology giant had $51 billion in cash as of the most recent quarter, which bodes well if it is looking at Salesforce because shares are trading around $80, up 4% this year.
Twitter (TWTR) shares were up nearly 4% during midday trading amid takeover speculation. There are a number of potential suitors for the social media company. Saxo Bank's Peter Garnry told MarketWatch that he believes Alphabet (GOOGL) will buy Twitter by the end of the year. Since the LinkedIn-Microsoft deal, Twitter shares have advanced about 7%, but the stock is down nearly 35% for the year.
--Written by Anders Keitz