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U.S. stocks fall broadly, as merger activity fails to offset Greek fears

Published 06/15/2015, 03:47 PM
Updated 06/15/2015, 04:24 PM
The Dow, NASDAQ and S&P 500 all fell by more than 0.4% on Monday
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Investing.com -- U.S. stocks fell broadly on Monday extending losses from late last week, as a flurry of merger activity failed to offset elevated concerns of a Greek default on its sovereign debt.

Stocks on the Dow Jones Industrial Average and NASDAQ Composite index plunged more than 0.4%, while nearly all 10 sectors of the S&P 500 Composite Index closed in the red on a bearish opening to the week. The Dow lost 107.67 or 0.60% to 17,791.17 to fall into negative territory for the year, while the NASDAQ dipped 21.13 or 0.42% to 5,029.97, as Microsoft Corporation (NASDAQ:MSFT) and other prominent tech stocks weighed. At one point early in Monday's session, the Dow was down approximately 200 points.

The S&P 500, meanwhile, fell 9.68 or 0.46% to 2,084.43, as stocks in the Consumer Goods, Industrials and Basic Materials sectors lagged, each closing the session down more than 0.65%. In U.S. morning trading, the S&P dipped below its 150-day moving average.

On Monday, CVS Health Corp (NYSE:CVS) acquired Target Corporation's (NYSE:TGT) pharmacy and clinic arm in a $1.9 billion that will spread the Rhode Island-based pharmacy chain's imprint on an additional 1,700 locations throughout the U.S. The deal comes weeks after CVS' acquisition of Omnicare in a merger valued at more than $10 billion. Shares in CVS gained 0.35 or 0.35% to 102.58, while shares in Target rose 0.97 or 1.22% to 80.45.

Also on Monday, shares in Cigna Corporation (NYSE:CI) surged to a record-high $162.16 amid multiple reports that the Connecticut-based managed health care insurer rebuffed a takeover bid from rival Anthem. At one point, Cigna shares surged more than 17% on the session before falling slightly back to 154.40. Cigna, which gained 17.09 or 12.45% on the session, finished as the top performer on the S&P 500.

The merger rumors also impacted UnitedHealth Group Incorporated (NYSE:UNH), which soared 1.49 or 1.27% to 119.14. UnitedHealth ended Monday's session as the top performer on the Dow. The worst performer was United Technologies Corporation (NYSE:UTX), which fell 2.84 or 2.41% to 114.76 after the multi-national conglomerate announced that it will divest its Sikorsky Helicopter division either in a sale or a spin-off. The move had been expected after United Technologies announced that it could unload the helicopter division in March.

The biggest gainer on the NASDAQ was Alexion Pharmaceuticals Inc (NASDAQ:ALXN), which rose 4.02 or 2.38% to 173.06. Last month, Alexion Pharmaceuticals acquired Synageva in an $8.4 billion merger. The worst performer was Micron Technology Inc (NASDAQ:MU), which fell roughly 1% to a 14-month low at 23.70, after receiving a downgrade from Morgan Stanley (NYSE:MS). Micron closed the session at 24.22.

On the S&P 500, Cigna finished just ahead of First Solar Inc (NASDAQ:FSLR), which gained 2.94 or 5.82% to 53.42. The worst performer on the S&P was PPG Industries Inc (NYSE:PPG), which closed at 115.47, after its board executed a 2-for-1 stock split.

On the New York Stock Exchange, decliners outnumbered advancers by a 2,046 to 1,095 margin.

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