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U.S. stock indexes tumbled on Monday, the first trading day of 2016, with the Dow losing more than 400 points after weak Chinese economic data reignited fears of a global slowdown. The Dow Jones industrial average was down 2.40 percent at 17,006.15, the S&P 500 was down 2.26 percent at 1,997.73 and the Nasdaq Composite was down 2.69 percent at 4,872.682.
** VALEANT PHARMACEUTICALS INTERNATIONAL INC, $97.61, -3.97 pct
Billionaire investor William Ackman said on Thursday he sold about 5 million shares in the drug company in order to generate a tax loss as investors in his Pershing Square Capital Management face the biggest loss in the company’s history.
** TESLA MOTORS INC, $222.38, -7.35 pct
The pioneering electric car maker said on Sunday that it delivered 17,400 vehicles in the fourth quarter of 2015, just above the low end of its forecast of 17,000-19,000.
Tesla delivered 208 of its new electric SUV, the Model X, in the quarter, below the expectations of some analysts. Robert W Baird analyst Ben Kallo, who had expected Tesla to deliver about 1,000 Model X cars, said deliveries were lower as “the Model X production ramp began later than we had expected” in the fourth quarter.
** NETFLIX INC, $106.9232, -6.52 pct
Robert W. Baird & Co cut its rating on the video streaming service provider’s shares to “neutral” from “outperform” and price target to $115 from $128. “Our quarterly U.S. subscriber survey suggests potentially weaker U.S. subscriber results for the second consecutive quarter, and while international may beat, we believe much of that is priced in,” Baird analysts wrote in a note.
** APPLE INC, $103.7499, -1.43 pct
** FACEBOOK INC $101.37, -3.14 pct
** ALPHABET INC $756.29, -2.79 pct
** TWITTER INC $22.2, -4.06 pct
** YAHOO INC, $31.25, -6.04 pct
** AMAZON.COM INC, $640.99, -5.16 pct
U.S. technology companies’ shares fell on Monday after China’s major stock exchanges tanked on the first trading day of the year, triggering a “circuit-breaker”, following the release of weak economic data.
China, the world’s second-largest economy, is touted by many analysts as Apple’s most important market for iPhone and tablet sales.
The bulk of Yahoo’s valuation comes from its stake in Chinese e-commerce giant Alibaba Group Holding Ltd.
Amazon shares were hit also by Monness, Crespi, Hardt, & Co analyst James Cakmak cutting his rating on the stock to “neutral” from “buy”. “We believe even winners need to take breathers sometimes,” Cakmak wrote in a note.
** JOY GLOBAL INC, $12.19, -3.33 pct
** CATERPILLAR INC, $66.23, -2.55 pct
Mining equipment makers’ shares fell as China saw a soggy start to 2016 after activity in its manufacturing sector contracted for the fifth straight month in December, suggesting that the government may have to step up policy support to avert a sharper slowdown. Mining equipment companies have also been hurt by lower demand, poor pricing, an oversupply in the coal industry and slowing global growth.
** BJ’S RESTAURANTS INC, $41.88, -3.66 pct
Oppenheimer analysts cut their rating on the casual dining restaurant operator’s stock to “perform” from “outperform”, saying that they don’t expect the company to report comparable sales above analysts’ expectations in 2016.
** BAXALTA INC, $40.2, +3.00 pct
The drugmaker said on Monday that it inked a deal with privately held Symphogen under which the companies would develop immuno-oncology drugs. The agreement holds a total potential value up to 1.4 billion euros ($1.6 billion) in option fees and milestones over the long term, in addition to royalties on worldwide sales, Baxalta said.
** UNILIFE CORP, $0.7796, +57.46 pct
The medical device maker entered into an exclusivity agreement with Amgen Inc, which paid a non-refundable $15 million deposit for an option to negotiate a potential transaction with Unilife until Jan. 31. Unilife, which makes injections and insulin patch pumps, said last year that it was reviewing strategic alternatives, including a sale, after getting interest from a possible buyer. A potential deal with Amgen could include a license to Unilife’s existing proprietary devices, the purchase of up to 19.9 percent of its common stock, and manufacturing arrangements and rights between the companies.
** QUNAR CAYMAN ISLANDS LTD, $45.5527, -13.63 pct
** CTRIP.COM INTERNATIONAL LTD, $45.22, -2.40 pct
** BAIDU INC, $183.72, -2.81 pct
** JD.COM INC, $29.59, -8.29 pct
** ALIBABA GROUP HOLDING LTD, $75.67, -6.89 pct
** YY INC, $60.95, -2.43 pct
** CHEETAH MOBILE INC, $15.16, -5.37 pct
** MOMO INC, $15.57, -2.81 pct
** KANDI TECHNOLOGIES GROUP INC, $10.444, -4.18 pct
** TARENA INTERNATIONAL INC, $10.01, -4.12 pct
** JINKOSOLAR HOLDING CO LTD, $26.1, -5.67 pct
U.S.-listed shares of Chinese companies fell after China’s major stock indexes tanked on the first trading day of the year, triggering a “circuit-breaker” that suspended equities trade nation-wide for the first time. The decline was triggered by data that showed activity in the Chinese manufacturing sector contracted for a fifth straight month in December. The Shanghai Composite index closed down about 7 percent in its biggest daily decline since Aug. 25.
JinkoSolar shares fell also after it said on Friday that Arturo Herrero, its chief strategy officer of six years, had resigned, effective Monday.
** PANDORA MEDIA INC, $12.46, -7.08 pct
SunTrust Robinson Humphrey cut its rating on the music streaming company’s shares to “neutral” from “buy” and price target to $15 from $18. “Despite the Copyright Royalty Board decision being behind us, we think the pursuit of new total addressable markets will increase near-term costs and risks, weighing against 2016 and 2017 profits,” analysts wrote in a note.
** PAYPAL HOLDINGS INC, $34.65, -4.28 pct
Monness Crespi Hardt cut its rating on the digital payment company’s stock to “sell” from “neutral”. “The payments space has been far from static over the last six months and we see PayPal’s prospects diminishing relative to the rest of the field,” Monness Crespi analyst James Cakmak wrote in a note.
Cakmak, however, said that the rating change might be premature as PayPal could take in benefits from the holiday December quarter. “But looking into 2016, we see several increasing risks to the story,” Cakmak wrote.
** WYNN RESORTS LTD, $67.48, -2.47 pct
** LAS VEGAS SANDS CORP, $42.26, -3.60 pct
** MELCO CROWN ENTERTAINMENT LTD, $16.4, -2.38 pct
** MGM RESORTS INTERNATIONAL, $22.03, -3.04 pct
U.S. casino operators’ shares fell after data showed on Friday that 2015 gambling revenue in the Chinese territory of Macau plunged 34.3 pct to 230.84 billion patacas ($28.9 billion). Gambling revenue fell for the second year in a row in 2015, hurt by prolonged anti-corruption campaign and slowing economic growth.
** CHIPOTLE MEXICAN GRILL INC, $450.06, -6.21 pct
Maxim Group cut its price target on the restaurant chain operator’s shares to $435 from $495, while Sterne Agee CRT cut it to $435 from $450. Oppenheimer cuts its rating on the stock to “perform”. “We now contend that a return to positive comps is unlikely before 2017,” Maxim analysts wrote in a note.
Compiled by Abhirup Roy in Bengaluru; Editing by Kirti Pandey