The stock market kicked off the new trading week on a cautious note with the Nasdaq leading the retreat. The tech-heavy index lost 1.2% while the S&P 500 fell 0.5% with eight sectors ending in the red. For its part, the Dow Jones Industrial Average (-0.2%) held up relatively well.
Equity indices began the session in the green, but quickly slumped into the red as biotechnology continued its recent woes while other momentum names displayed broad weakness. Late-afternoon buying lifted the key averages off their lows, but the Nasdaq could only reclaim a portion of its loss.
The iShares Nasdaq Biotechnology ETF (IBB 239.23, -6.78) settled lower by 2.8% after testing its 100-day moving average (235.61) for the first time since early November. Today's loss widened the ETF's March decline to 9.5%, but the high-flying industry group remains up 5.4% so far in 2014.
The underperformance of biotechnology pressured the health care sector (-1.4%), which spent the entire session behind the other nine groups. Health care was not the only influential sector weighing on the broader market as the consumer discretionary space (-1.0%) lagged throughout the session while technology (-0.4%) did not overtake the broader market until the late afternoon.
Momentum names did their part in keeping the two sectors on the defensive. Amazon.com (AMZN 351.85, -8.77) and Netflix (NFLX 378.90, -27.09) pressured the discretionary space, posting respective losses of 2.4% and 6.7%, while Facebook (FB 64.10, -3.14), Google (GOOG 1157.93, -25.11), andLinkedIn (LNKD 188.14, -8.58) contributed to the early weakness in technology.
Speaking of technology, the sector led the market lower in the morning, but was able to finish the day ahead of the S&P 500 thanks to the relative strength of top-weighted names. Apple (AAPL 539.19, +6.32), IBM (IBM 188.25, +1.58), and Microsoft (MSFT 40.50, +0.34) gained between 0.9% and 1.2% with Apple's strength coming amid reports indicating the company is working on a content distribution agreement with Comcast (CMCSA 50.30, +0.30). In all likelihood, the news exacerbated today's loss in the shares of Netflix.
Even though heavily-weighted sectors lagged, the broader market was prevented from registering additional losses by the relative strength among consumer staples (-0.1%), energy (-0.1%), and financials (-0.2%). Elsewhere, telecom services (+0.3%) and utilities (+0.2%) posted modest gains, but the pair carries little sway over the broader market since it accounts for just 5.5% of the S&P 500.
Treasuries posted modest gains after climbing off their overnight lows. The benchmark 10-yr yield slipped two basis points to 2.73% after hovering near 2.78% ahead of the opening bell.
Participation was in line with average as roughly 714 million shares changed hands at the NYSE.
There was no notable economic data reported today, but some news of note came out of the G7 meeting at The Hague where the G7 nations issued a joint statement, saying they are suspending their participation in the G8 until "Russia changes course."
Tomorrow, the Case-Shiller 20-city Index (consensus 13.3%) for January and the January FHFA Housing Price Index will be released at 9:00 ET while March Consumer Confidence (consensus 78.2) and New Home Sales for February (consensus 445K) will be reported at 10:00 ET.
- Russell 2000 +1.7% YTD
- Nasdaq Composite +1.2% YTD
- S&P 500 +0.5% YTD
- Dow Jones Industrial Average -1.8% YTD
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Icahn Says Call for IPO of 20% of PayPal Due to ‘Pragmatism’ 2014-03-24 16:57:46.166 GMT
By Beth Mellor March 24 (Bloomberg) -- Carl Icahn says on CNBC that move to call for EBay to conduct IPO of 20% of PayPal is due to “pragmatism.” * NOTE: Icahn had previously called for EBAY/PayPal split * Reiterates that EBAY CEO John Donahoe has not done a good job * NOTE: March 19, EBAY said doesn’t believe partial spinoff of PayPal will make it more competitive or accelerate growth
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
To contact the reporter on this story: Beth Mellor in New York at +1-212-617-3078 or bmellor@bloomberg.net To contact the editors responsible for this story: Joanna Ossinger at +1-212-617-7789 or jossinger@bloomberg.net Beth Mellor
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SFR Unions Want Bidders to Sign Accord Guaranteeing Jobs: AFP 2014-03-24 17:45:42.320 GMT
By Steve Rhinds March 24 (Bloomberg) -- SFR labor unions Unsa, CFE-CGC, CGT and CFDT asked “potential buyers” Numericable and Bouyges to sign an accord with employee representatives including guarantees on jobs at the telecommunications co., Agence France- Presse reports, citing a statement from the unions. * NOTE: Bouygues Boosts SFR Cash Bid to $18.1 Billion to Top Drahi’s {NSN N2S1HS6TTDSM <go>}
Link to AFP story (in French):{NSN N2YBMK3H0JK0 <GO>}
Link to Company News:{ATC NA <Equity> CN <GO>} Link to Company News:{NUM FP <Equity> CN <GO>} Link to Company News:{VIV FP <Equity> CN <GO>} Link to Company News:{EN FP <Equity> CN <GO>}
For Related News and Information: First Word scrolling panel: {FIRST<GO>} First Word newswire: {NH BFW<GO>}
To contact the editor responsible for this story: Steve Rhinds at +33-1-5365-5072 or srhinds@bloomberg.net
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Vivendi Said to Seek Improved Bid for SFR From Drahi’s Altice 2014-03-24 18:16:52.521 GMT
By John Simpson March 24 (Bloomberg) -- Vivendi seeking improved offer for phone unit SFR from Patrick Drahi’s cable holding co. Altice after Bouygues unexpectedly boosted its bid last week, people familiar tell Bloomberg’s Aaron Kirchfeld, Marie Mawad and Matthew Campbell. * While Vivendi prefers Altice’s proposal because of a greater likelihood of antitrust approval and quicker exit from the enlarged entity, co. would like Altice to narrow gap with Bouygues’s bid, the people said * Altice discussing such a move, though no final decision has been made, said one of the people See full story
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
--With assistance from Helene Fouquet in Paris.
To contact the reporter on this story: John Simpson in Toronto at +1-416-203-5726 or jsimpson12@bloomberg.net To contact the editors responsible for this story: Andrea Snyder at +1-202-624-1831 or asnyder5@bloomberg.net Catherine Larkin
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BN 03/24 16:45 *ICAHN SEES MAJOR SELL DOWN OF MARKET COMING BN 03/24 16:42 *ICAHN SAYS HE HAS NO PERSONAL ANIMOSITY WITH ACKMAN BN 03/24 16:41 *ICAHN SAYS ACKMAN DIDN'T SCORE BIG VICTORY WITH FTC PROBE BN 03/24 16:40 *ICAHN SAYS HE'S UP ABOUT $300 MILLION ON HERBALIFE INVESTMENT BN 03/24 16:38 *ICAHN TELLS CNBC HERBALIFE IS NOT A PONZI SCHEME BN 03/24 16:38 *ICAHN SAYS HERBALIFE VERY UNDERVALUED IN LONG RUN: CNBC BN 03/24 16:37 *ICAHN SAYS SEN MARKEY REQUEST REASON FOR HERBALIFE PROBE BY FTC BFW 03/24 16:37 *ICAHN ON CNBC SAYS DESIRE FOR NEW HERBALIFE BOARD SEATS MUTUAL BN 03/24 16:36 *ICAHN SPEKING IN CNBC INTERVIEW BN 03/24 16:36 *ICAHN SAYS DESIRE FOR NEW HERBALIFE BOARD SEATS MUTUAL
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*ICAHN SEES MAJOR SELL DOWN OF MARKET COMING 2014-03-24 16:46:41.603 GMT
--ANDREW CINKO
-0- Mar/24/2014 16:46 GMT