Stock Market News for February 24, 2015 – Zacks Investment …

A calm trading session ended with the Dow and S&P 500 slipping into the red as another decline in oil prices affected energy shares. Though these two benchmarks eased off their record highs, the indices were able to erode a chunk of their initial losses following a late-afternoon rally. However, a rally in Apple’s shares propelled Nasdaq to its ninth-straight day of gains. Investors kept away from betting big bucks ahead of the Fed Chair Janet Yellen’s semiannual testimony before the Senate Banking Committee this week.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article

The Dow Jones Industrial Average (DJI) dropped 0.1%, to close at 18,116.84. The Standard & Poor 500 (S&P 500) lost less than a point and was down a meager 0.03% to 2,109.66. The tech-laden Nasdaq Composite Index closed at 4,960.97; edging up 0.1%. The fear-gauge CBOE Volatility Index (VIX) moved up 1.8% to settle at 14.56. Volumes were low as a total of about 5.9 billion shares were traded on Monday, below month-to-date average of 7 billion. The advance-decline ratio was almost equal, as for 49% stocks that declined, 48% moved up.

VIX improved on Monday after it had dropped to the lowest level this year on Friday. The fear-gauge index has an inverse relationship with the markets. Markets’ rally to record highs has thus taken the index lower. The modest increase in the index and particularly the low volumes suggested the lack of action in the markets on Monday.

Investors also refrained from betting as they want to find out what Federal Reserve Chairwoman Janet Yellen has to say in her semiannual testimony. Her remarks are of particular significance after the Fed minutes released last Wednesday showed officials debated the effects of hiking interest rates from near zero level. While “many” officials said premature rise in interest rates will hamper U.S. economic recovery, “several” officials opined delaying the same will result in high inflation.

The day was devoid of any major news, and it was once again the drop in oil prices that affected the Dow and S&P 500. The price of WTI crude oil declined 2.8% to $49.45. Brent Crude Oil slumped 2.2% to drop to $58.90 a barrel. The drop in oil price had a negative impact on the Energy Select Sector SPDR (XLE). The sector declined 0.4% and was the second biggest loser among the S&P 500 sectors. Key energy stocks including Occidental Petroleum Corporation (OXY – Analyst Report), Halliburton Company (HAL – Analyst Report), Baker Hughes Incorporated (BHI – Analyst Report) and Schlumberger Limited (SLB – Analyst Report), ConocoPhillips (COP – Analyst Report) lost 0.4%, 0.3%, 0.9%, 0.4% and 0.7% respectively.

Talking of sectors, the healthcare sector was able to finish in the green boosted by merger-and-acquisition activity in the pharmaceutical industry. Valeant Pharmaceuticals International, Inc. (VRX – Analyst Report) shares soared 14.7% after announcing on Sunday that it will acquire Salix Pharmaceuticals Ltd. (SLXP – Analyst Report) for $10 billion in cash. Also, Bristol-Myers Squibb Company (BMY – Analyst Report) agreed to buy privately-owned biotechnology company Flexus Biosciences. The deal may be valued up to $1.25 billion. Bristol-Myers Squibb’s shares were up 1.3%. Health Care Select Sector SPDR ETF (XLV) added 0.5% and was the second biggest gainer among the S&P 500 sectors.

While the Dow was negatively affected by the 2.3% fall in shares of The Boeing Company (BA – Analyst Report), Nasdaq on the other hand was able to finish in the green boosted by gains in Apple Inc. (AAPL – Analyst Report). Shares of the iPhone maker jumped 2.7% yesterday, hitting another all-time high. Nasdaq was thus able to notch up its longest winning streak since Sep 2010, gaining for nine straight sessions.

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Stock Market News for February 24, 2015 – Zacks Investment …