Stocks fell on Monday for a fifth straight session. The Dow dropped to its lowest level since early February, and the S&P 500 saw its third five-day streak of losses this year.
First, the scoreboard:
- Dow: 17,434.51, -134.02, (-0.76%)
- S&P 500: 2,067.23, -12.42, (-0.60%)
- Nasdaq: 5,041.76, -46.87, (-0.92%)
And now, the top stories on Monday:
- Chinese stocks had their worst day in eight years. The Shanghai Composite fell 8.48% on Monday, its worst one-day percentage drop since February 2007. Every sector closed lower, and the index is down 10% from Thursday’s close.
- Brent crude is in a bear market. In futures trading, the international benchmark of oil prices tumbled more than 2% to close at $US53.47 per barrel. A bear market is roughly defined as a 20% drop from highs. On Thursday, West Texas Intermediate crude oil fell into a bear market, and reached a fresh four-month low near $US47 per barrel on Monday.
- In economic data, durable goods orders climbed more than expected in June, boosted by a jump in transportation orders. Headline orders rose 3.4% (3.2% expected, -1.8% prior), and excluding the volatile transportation and defence components, orders rose 0.8% (0.4% expected, 0.4% prior). The data for May was revised lower. “On net, despite June strength, the long-awaited stabilisation in capex orders still looks like a hope rather than a reality,” wrote UBS’ Maury Harris in a note to clients after the data.
- The Dallas Fed manufacturing index came in at -4.6, below the estimate for -7. Activity in Texas moderated, and a few survey respondents said there’s a seasonal lull. Heavy rainfall in May, and weaker energy prices also took their toll on business activity, according to respondents.
- Israel-based Teva Pharmaceuticals is buying Allergan’s generic drug unit for $US40.5 billion It’s the latest in the mega-deal frenzy that’s happening in the industry. Teva rallied more than 15%, and Allergan shares gained 6%. Teva abandoned its bid for Mylan, whose shares tanked 15%.