U.S. stocks are edging lower Thursday morning as industrial companies like defense contractor Raytheon fall. Bond yields are jumping and investors are selling utility and real estate companies. Chipmaker Qualcomm said it will buy competitor NXP Semiconductors for $38 billion.
KEEPING SCORE: The Dow Jones industrial average lost 17 points, or 0.1 percent, to 18,182 as of 10:38 a.m. Eastern time. The Standard & Poor’s 500 index fell 4 points, or 0.2 percent, to 2,135. The Nasdaq composite dipped 12 points, or 0.2 percent, to 5,238.
CHIP IN: Smartphone chipmaker Qualcomm said it will buy NXP for $110 per share in cash. Qualcomm jumped $2.01, or 2.9 percent, to $70.21 and NXP rose $1.64, or 1.7 percent, to $100.30. The deal has been rumored for about a month and investors were excited about the prospect: Qualcomm has climbed 13 percent since it was first reported that the companies were in talks and NXP is up 22 percent.
INDUSTRIALS: Defense contractor Raytheon gave up $3.89, or 2.8 percent, to $137.39 as its outlook failed to impress investors. Communications and surveillance company L-3 Communications gave up $10.18, or 6.8 percent, to $138.53 after it posted weak sales. Aerospace giant Boeing lost $2.37, or 1.6 percent, after it surged almost 5 percent Wednesday. That was its biggest gain since January 2015.
FEELING BETTER: Bristol-Myers Squibb reported a larger profit and greater sales than analysts expected as sales of medicines including its cancer treatment Opdivo and anti-clotting drug Eliquis continued to grow. The company raised its annual forecasts.
The stock rose $1.98, or 4 percent, to $51.27.
START YOUR ENGINES: Tesla Motors rose after it reported its first quarterly profit in three years. The electric car maker also said its revenue more than doubled and that it doesn’t expect it will need to raise cash in the next few quarters. Tesla stock gained $9.44, or 4.7 percent, to $211.68. Also trading higher was SolarCity, a solar panel maker Tesla wants to buy. It rose 98 cents, or 4.9 percent, to $20.97.
RED LIGHT: Automaker Ford said its quarterly profit fell by more than half as it deals with a big recall and a tricky launch of heavy-duty pickups. Its stock sank 23 cents, or 1.9 percent, to $11.65.
BONDS: Bond prices dropped. The yield on the 10-year Treasury note leaped to 1.87 percent from 1.79 percent. As bond yields rose, investors sold shares of companies that pay big dividends. Real estate companies fell for the second day in a row and they are now lower for the year. Utilities also slumped.
NOT STRONG ENOUGH: Nutritional supplement maker GNC Holdings tumbled again after it reported a smaller profit and weaker sales than investors anticipated. The stock dropped $3.24, or 16.1 percent, to $16.90. The stock is down 46 percent this year.
A DISCOUNT?: Online daily deals service Groupon disclosed better results that investors expected, but also said it’s buying competitor LivingSocial. They companies did not announce terms of the deal. Groupon lost 84 cents, or 16 percent, to $4.42.
GOOD AND GREASY: Restaurant chain Buffalo Wild Wings climbed $8.85, or 6.6 percent, to $143.95 after it reported a profit that lived up to Wall Street’s expectations. The stock has been skidding since early August.
TAKING FLIGHT: Social media network Twitter added 1 cent to $17.30 after the company said users grew 3 percent in its latest quarter and said it will cut more than 300 jobs.
ENERGY: Oil prices recovered after falling for three days in a row. U.S. benchmark crude rose 39 cents to $49.57 a barrel in New York. Brent crude, the international standard, added 46 cents to $51.50 a barrel in London.
CURRENCIES: The dollar rose to 104.93 yen from 104.54 yen. The euro edged up to $1.0918 from $1.0906.
OVERSEAS: Germany’s DAX stock index lost 0.2 percent and France’s CAC 40 slipped 0.4 percent. Britain’s FTSE 100 rose 0.1 percent. Japan’s benchmark Nikkei 225 index slipped 0.3 percent while South Korea’s Kospi rose 0.5 percent and Hong Kong’s Hang Seng lost 0.8 percent.
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