US stocks rose today, with another drop in bond yields supporting equities and gains in Internet and biotech stocks giving the Nasdaq an outsized advance.
Equities have been pressured recently, with the S&P 500 coming off its first two-week decline since January as investors have become concerned about the US economy’s growth prospects. Last week, readings on retail sales and consumer sentiment fell shy of expectations while labor and housing data provided reason for optimism.
But with the yield on the 10-year US Treasury note near 2.5 percent, investors may have felt compelled to wade into equities and help keep them afloat.
The Dow Jones industrial average was up 24.54 points, or 0.15 percent, at 16,515.85. The Standard & Poor’s 500 Index was up 7.09 points, or 0.38 percent, at 1,884.95. The Nasdaq Composite Index was up 33.62 points, or 0.82 percent, at 4,124.21.
European equities were pulled downby the pharmaceuticals group AstraZeneca, which slumped after rejecting a bid from Pfizer, and by Deutsche Bank’s announcement of a capital increase.
The pan-European FTSEurofirst 300 index, which last week hit a 6-year high of 1,372.81 points, closed down 0.2 percent at 1,358.91 points. The euro zone’s blue-chip Euro STOXX 50 index also fell 0.1 percent to 3,169.90 points.
AstraZeneca’s shares dropped 11.1 percent to take the most points off the FTSEurofirst 300, after the British company rejected a sweetened «final» cash-and-stock offer from Pfizer, casting doubt on the US drugmaker’s plan to create the world’s biggest pharmaceuticals group.
«Despite Pfizer having spent a large amount of money and time, the signal seems clear from AstraZeneca’s board of directors, UK politicians and mainstream media that this is a bad deal, and we see limited efforts from Pfizer going forward,» said Peter Garnry, head of equity strategy at Saxo Bank.
«Its shareholders will not appreciate a fourth attempt as it will inflate the valuation too much, relative to deal risk,» he added.
Meanwhile, Japan’s Nikkei share average dropped today, extending losses from Friday as a stronger yen made investors risk averse, while sentiment was also hurt by weak China shares on concerns about slower growth in the world’s second-biggest economy.
The Nikkei ended 0.6 percent lower at 14,006.44.
The broader Topix declined 0.8 percent to 1,150.07, while the new JPX-Nikkei Index 400 slipped 0.7 percent to 10,491.39.
Source: Buenos Aires Herald