Stocks Bottom Out Over Talks of Rate Hike

Markets were down today on slightly higher than average volume. The Dow fell by 179.85 points and closed out the trading day at 17,730.48. The NASDAQ led the day in losses, falling 1.01%. It lost 51.82 points and closed the day at 5,095.30. The S&P 500 was down as well, losing 20.62 points to close out the day at 2,078.58.

In international trading, markets were mixed but generally down. Europe had an especially bad day, losing ground across the board. Germany’s DAX was down 173 points, while London’s FTSE lost 59 points, and France’s CAC dropped by 73 points. The picture across Asia was similar, although Japan’s Nikkei had a good day.
It closed up by 377 points. Hong Kong’s Hang Seng fell by 141 points, while Australia’s ASX dropped by 8 points.

Plum Creek (PCL) and Weyerhauser (WY) Announce Merger

In a deal that was just announced today, lumber producers Plum Creek (PCL) is going to buy out and merge with Weyerhauser (WY). Weyerhauser will be acquired by Plum Creek in a multi-billion dollar deal that will put their lumber harvesting operations under the control of Plum Creek.

In trading today, Plum Creek saw its share prices rise by 7 points, or over 17%, to close the day at $47.26. Meanwhile, Weyerhauser fell by just under a point, or 3%, to close the day at $29.50 per share.

Mallinkrodt Pharmaceuticals (MNK) Down Big After Short Sale

One big short seller put Mallinkrodt Pharma (MNK) down by 22% in intraday trading. The company’s share price bombed when an analyst tweeted that they were short-selling Mallinkrodt due to weaknesses in the sector and a perceived overvaluation of the company. Mallinkrodt ended the day down 17%, or 11.88 points to close at $58.01 per share.

Stocks Bottom Out Over Talks of Rate Hike

Stocks were down today on the tail of Fed chairwoman Janet Yellin’s pronouncement that conditions were favorable for a rate hike. In an announcement made last week, Yellin mentioned that the jobs picture was strong in October than expected, and that stocks were having a good month. All of that might add up to a sharply higher prime interest rate from the Fed, which has held the rate at 0% since 2008.
Published on Nov 9, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

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