Stock Market News (US Open) – Strong euro, M&A deals, Hurricane Harvey and CEO move mark today’s key equity news


Maja Rakic, XM Investment Research Desk

Market participants across the globe started yet another week with a mixed performance in equity markets. Most bourses in Europe were trading lower as the European session progressed while  US stocks opened higher, with the Dow Jones Industrial Average rising 0.18%, the S&P 500 up 0.23% and the Nasdaq Composite up 0.32%.

The pan-European Stoxx 600 slid 0.17%, with the blue-chip Euro Stoxx 50 down 0.09%. Germany’s DAX was 0.08% lower ahead of the US open. Due to a bank holiday, the London stock exchange was closed for business, narrowing the deep losses recorded in Europe today.

With the heavy peaks of earnings season out of the way, trading has been relying on business and other news to drive share price moves. Today’s flow was dominated by the strong euro and the negative impact it has on European exporters, inducing a plunge across bourses on the old continent.

Meanwhile, Hurricane Harvey has caused a catastrophe in Texas, paralyzing Houston and its surrounding area. The heart of the oil industry was shut-down with around 20% of production cut off and a much larger percentage of refineries impacted. While the impact on oil prices was imminent, investors are still assessing the impact it may have on other stocks such as insurance companies.

In other news, Uber got a new chief driver as the e-hailing company lured a new CEO from Expedia. Dara Khosrowshahi, the current CEO of Expedia, has officially been offered the job, multiple sources have reported. If Mr. Khosrowshahi accepts the position, it will be the end of turbulent times for Uber that has been searching for a new CEO ever since the prior chief executive and co-founder, Travis Kalanick stepped down on June 20.

Shares of Kite Pharma sky-rocketed in pre-market trading on news that the company is getting acquired by Gilead Sciences in an all-cash deal valued at $11.9 billion. This valuation is at a 29.4% premium to Kite’s share price as of Friday‘s close.