Investing.com -- Stocks on the U.S. equities markets edged up on Wednesday as traders reacted to the third largest oil and gas merger ever, even as plunging crude prices weighed on the energy sector.
Hoping to challenge Exxon Mobil Corporation (NYSE:XOM) for dominance of the global oil markets, Royal Dutch Shell (LONDON:RDSa) plc. announced a $70 billion mega-merger with smaller rival BG on Wednesday. By 2018, the new company is expected to produce more oil and gas than ExxonMobil, Reuters reported, according to a forecast by analysts from Jeffries. Both Shell and ExxonMobil have intermittently considered acquiring BG over the last decade.
On the New York Stock Exchange, Shell fell 2.09 or 3.37% to 59.83, while BG Group (LONDON:BG) Plc (OTC:BRGYY) gained 3.69 or 27.17% to 17.27.
In reaction to the merger, the Dow Jones Industrial Average gained less than 0.20% to remain in the green for the year, while the NASDAQ Composite index and the S&P 500 Composite index also posted modest gains to rally from Tuesday's minor sell-off. Stocks were choppy in afternoon trading, following the release of the Federal Reserve's minutes from the Federal Open Market Committee's March meeting but still remained in positive territory for the day.
The Dow gained 27.09 points to close at 17,902.51 on Wednesday, while the NASDAQ gained 40.59 or 0.83% to end the session at 4,950.82.
Led by gains in the Health Care, Consumer Goods and Financial sectors, the S&P 500 gained 5.57 or 0.27% to 2,081.90. While seven of 10 sectors closed in the green, stocks in the Energy, Telecommunications and Utilities sectors lagged.
On the Dow, the merger prompted a mild sell-off among Shell's top competitors. ExxonMobil and Chevron Corporation (NYSE:CVX) finished as the worst performers on the index, as shares in both companies each fell by more than 1.5%. ExxonMobil lost 1.59 to close at 84.16, while Chevron dropped 1.77 points to end the session at 106.77. The top performer on the Dow was Nike Inc (NYSE:NKE), which gained 1.13% to 100.74.
The biggest gainer on the NASDAQ was Mylan (NASDAQ:MYL) N.V., after the West Virginia-based pharmaceutical company announced a proposal to acquire Dublin-based Perrigo Co (NYSE:PRGO). for $205 a share. Perrigo, which was the top performer on the S&P 500, soared more than 28% in mid-day trading before settling at 195.00 (up 18.39%). Mylan closed at 68.36 a share, up 8.79 or 14.76%.
The worst performer on the NASDAQ was VimpelCom (NASDAQ:VIP),which fell 0.16 or 2.73% to 5.71. The worst performer on the S&P 500 was Ensco, which dropped 0.78 points or 3.32% to close at 22.73.