Stocks had another quiet day of trading as the Federal Reserve started its two-day policy meeting in Washington, and traders geared up for the statement on Wednesday.
First, the scoreboard:
- Dow: 18,173.82, +53.65, (0.30%)
- S&P 500: 2,144.39, +5.27, (0.25%)
- Nasdaq: 5,251.99, +16.96, (0.32%)
- Wells Fargo’s CEO got grilled by the Senate. John Stumpf met with the Senate Banking Committee in a tense testimony about fraudulent accounts opened by Wells employees. Stumpf said the creation of the accounts was not a systemic issue caused by the upper levels of the firm. Sen. Elizabeth Warren was most blistering in her questioning, and called for Stumpf to be criminally investigated.
- Pharma giant Allergan is buying Tobira Therapeutics, a much smaller company, for a premium that could be up to 1,800%. Allergan is paying an upfront price of $28.35 per share in cash, and up to $49.84 per share in so-called Contingent Value Rights (CVRs) if two drugs under development make it to market. Used together, the drugs under development could help to treat NASH — Cenicriviroc and Evogliptin.
- Housing starts fell more than expected in August, by 5.8% at a seasonally adjusted annual pace of 1.14 million units. Building permits for future construction fell 0.4% to a 1.14 million-unit rate, amid a plunge in the volatile multi-family homes segment. The fall was expected, as groundbreaking had been running ahead of permit approvals in recent months.
- SeaWorld shares fell 4% after the company cut its dividend. The beleaguered theme park company said in a press release on Monday that it is lowering its dividend payout to $0.10 per share from $0.21 per share. Its board announced that it will no longer issue a dividend after the payment this quarter. Instead ,it would be “opportunistically repurchasing” shares in the open market.
Business Insider Emails & Alerts
Site highlights each day to your inbox.