Stocks Down; Trade Data, Ukraine Eyed – Morningstar

Stocks Down; Trade Data, Ukraine Eyed – Morningstar


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Meanwhile, the

U.S. trade deficit fell

3.6% in March to $40.4 billion, seasonally adjusted, versus February’s reading of $41.9 billion, which was also revised downward. Although the decline was not as much as economists had expected, the increase in oil, gas, and aircraft exports was an encouraging sign for the coming months. 

Separately, the Organization for Economic Cooperation and Development said in its semiannual report it is

lowering its global-growth forecast

on account of slower expected improvement in emerging markets. That said, the OECD indicated the global economy is in a better condition compared with recent years. 

The 

Dow

 and the 

Nasdaq

 had each lost 0.5% by midday, and the

S&P 500

 was down 0.4%. 

Stocks on the Move

 

Merck

announced the sale of its consumer unit to

 

Bayer

for $14.2 billion, which is higher than Morningstar analysts’ $10 billion valuation for the unit. Cost and revenue synergies for Bayer should help offset the high purchase price. Strategically, the deal should strengthen both companies’ moats by further entrenching the companies in their highest return businesses. For Merck,

 

Morningstar analysts believe

the sale of the consumer unit should strengthen Merck’s core prescription drug business. Bayer’s ADR shares were down 0.4% at midday, and Merck’s shares were 2.3% lower. 

 

Twitter

shares were down more than 11% at midday

following the end of the firm’s lockup period

, with many early investors selling their holdings. 

 

DirecTV

shares were up 2.2% at midday, with the firm posting adjusted earnings per share that

came in ahead of Wall Street expectations

, even though revenue fell short. 

 

Mosaic

shares had lost more than 2% by midday after the firm’s first-quarter profit fell 43% to $217.5 million, missing Street forecasts. Revenue

came in below expectations

, as well. 

Foreign Markets

Stocks in Europe fell, with the 

FTSE 100

, the 

Paris CAC

, and the 

DAX

 losing 0.3%, 0.8%, and 0.7%. 

In Asia, the 

Shanghai Composite

 was flat, while markets in Japan and Hong Kong were closed. 

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Stocks Down; Trade Data, Ukraine Eyed – Morningstar

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