The major U.S. averages had a rough day of trading Wednesday. While all three were able to trim losses heading into the closing bell, the Dow closed the day down triple digits.
The Dow Jones Industrial Average fell 0.49%, or 124 points to 25,176, while the S&P 500 fell 0.69%, or 20 points to 2,820, and the Nasdaq fell 1.15%, or 91 points to 7,780.
Diamondback Energy Makes $8.4 Billion Permian Basin Play
Texas-based Diamondback Energy (FANG) announced that it is purchasing Alabama-based Energen for $8.4 billion, a purchase that will give the company a larger presence in the West Texas Permian Basin.
Diamondback has been on an acquisition streak in recent weeks. Last week, the company purchased Ajax Resources, which also operates in the Permian basin, for $1.2 billion.
"This transaction represents a transformational moment for both Diamondback and Energen shareholders as they are set to benefit from owning the premier large cap Permian independent with industry leading production growth, operating efficiency, margins and capital productivity," said Diamondback Chief Executive Travis Stice.
Copper Prices Are Down 20% From the 4-Year High the Commodity Hit in June
Copper prices fell 2.7% to $2.609 a pound on the Comex division of the New York Mercantile Exchange Wednesday, entering bear market territory after slipping to a 13-month low on Tuesday.
Copper prices are now down 20% from the four-year highs that were reached in June due in part to another round of shaky economic news coming out of China.
China, the world's largest commodity consumer, as well as the country that is responsible for about half of the world's copper demand, reported that fixed-asset investments in the country's nonrural areas grew at a 5.5% rate during the first seven months of the year.
That increase matched the lowest rate of growth in the country since 1999.
Adding to the downward pressure on copper prices was a Bloomberg report that the union at Chile's Escondida mine, the world's largest, is close to reaching an agreement with BHP Billiton (BHP) that will resume production at the mine and increase the supply of copper on the market.
U.S. futures are tanking ahead of Wednesday's open as investors digest the latest round of tariffs in response to a U.S.-led trade war.
Turkey doubled the tariffs on some U.S. imports including cars, alcohol and tobacco. The beleaguered lira rallied 6% against the U.S. dollar after the Turkish currency hit an all-time against the dollar following U.S. tariffs against the country.
Dow futures are down 0.66%, indicating an opening 180 points lower, while S&P futures were down 0.67%, indicating an opening 19 points lower, and Nasdaq futures were down 0.94%, indicating an opening 70 points lower.
World markets are also reeling Wednesday. In Asia, the Shanghai Composite plunged 2.08%, the Hang Seng fell 1.55%, and the Nikkei fell 0.68%.
In Europe, the CAC 40 and FTSE 100 fell 1.1% and the DAX declined 1%.