Continuing unrest in Iraq has caused US stocks on Monday to finish with mixed economic data. Stocks ended on Monday being marginally lower. The S&P 500 and Dow Jones Industrial Average went up after making decent gains for six consecutive days. At the beginning of the day, the equity indices were low, for the rest of the day, they were in the narrow range. S&P 500 attempted to gain back its flatline after its opening but failed.
The loss made by the Dow Jones Industrial Average was 9.82 points. This was a loss of 0.06%. It stood at 16 937.26. The broad-based S&P 500 fell 0.01% and stood at 1962.61 with a loss of 0.26. The Nasdaq Composite Index stood at 4368.68 after losing 0.64 or 0.01%.
The trend was such that selective industries like consumer staples and healthcare stocks slumped. This caused a pressure on the market throughout the session. The stocks which made gains were mostly technology and energy-related. Price of oil prices dropped because of turbulence in Iraq. However, some investors are bullish that situation in Iraq will improve and US Secretary of State John Kerry’s visit to Iraq sufficed to their optimism.
The price of Oracle rose 0.7% as the company announced it was purchasing its rival Micro Systems for whopping $5.3 billion. The deal is to foster Oracle’s presence in the hospitality sector. Micro’s existing clientele is full of casinos, restaurants, hotel and retail chain companies. Oracle is currently being traded at $41.10, which is almost 70% more than the previous closing.
In the energy sector too, there was news of the acquisition. Utility Wisconsin Energy said it was in the process of buying Integrys Energy Group for $9.1 billion. The utility wants to be a power giant in the Midwest of the United States where there’s increasing demand for power. After the announcement, Integrys stock price went up 12.1%.
Interestingly, good news came from China. HSBC PMI index for China stood at 50.8 in June. Last month, it was 49.4. A reading of more than 50.0 indicates growth and expansion. This brings good news for export industries of US and Europe as China is world’s largest importer of raw materials and related commodities.