Market Wrap: US Manufacturing Hits the Skids; Apple Settles 'iPad' Suit; Merger Monday!


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July 2, 2012 5:13 PM EDT Send to a Friend
Market wrap-up for July 2nd

End of the Day: Dow Jones Industrial Average down 8.7 to 12,871.39; S&P 500 down 3.4 to 1,365.51; Nasdaq up 16.2 to 2,951.23

The following is a brief summary of events moving markets today:
  • Macro growth issues get more real: U.S. manufacturing slowed down for the first time in over three years, according to new data out Monday. The ISM Manufacturing Index came in at 49.7 in June, down from 53.5 in May. Numbers below 50 indicate contraction in the sector and this was the first reading under that mark since May 2009.

    The Street was looking for a drop to just 52.

    New orders plummeted from 60.1 down to 47.8 in June, which is the first time since April 2009 it was below the 50 level.

    The slowdown highlights macro data hinting that challenges are just segmented to one economy. China's manufacturing sector grew at its slowest pace in seven months, according to reports from the China Federation of Logistics and Purchasing. China's PMI for June came in at 50.2, down from 50.4 the prior month.

    For more color on the numbers, click here.

  • Airbus is getting bold: Boeing (NYSE: BA) ended the day down 1.5 percent amid reports that rival Airbus will begin assembling jets in the U.S. starting in 2015. Plans call for Airbus to manufacture its A320 aircraft in Mobile, Alabama in 2015, looking for production to increase from 40 to 50 per year by 2018.

    The investment is seen to be around $600 million.

    Airbus and Boeing have been butting heads over the last few years, with Boeing claiming Airbus received favorable U.S. subsidies. Both are being investigated by World Trade Organization over subsidies, notes the WSJ Monday.

  • Merger Monday!:
    • Bristol-Myers Squibb (NYSE: BMY) to acquire Amylin Pharma (Nasdaq: AMLN) in $5.3 billion deal, or $7 billion including a $1.7 billion payment to Eli Lilly (NYSE: LLY). For more, click here;
    • Micron Technology, Inc. (Nasdaq: MU) will acquire Elpida Memory in a $2.5 billion deal, with just $750 million upfront. Click here for more;
    • Ingram Micro Inc. (NYSE: IM) to acquire Brightpoint (Nasdaq: CELL) for $9 per share, or $840 million including debt, net cash. Click here for more color;
    • Linde AG agrees to acquire Lincare Holdings Inc. (Nasdaq: LNCR) for $41.50 per share, or $4.6 billion. For more, click here;
    • Dell (Nasdaq: DELL) and Quest Software (Nasdaq: QSFT) entered into a definitive agreement for Dell to acquire Quest for $28 per share in cash, or $2.4 billion excluding cash and net debt. For more color, click here.
    • Murata Electronics closed its deal to acquire RF Monolithics (Nasdaq: RFMI) at $1.78 per share.
    For more M&A news, click here.

  • You're all mine!: Reports out today have Apple (Nasdaq: AAPL) settling its dispute with Proview over the 'iPad' trademark in China. In total, Apple is expected to pay $60 million, but gain full rights to the name. For more color, click here.

  • REMINDER: U.S. markets will be closing early Tuesday ahead of the Fourth of July holiday on Wednesday. The NYSE will be calling it a day at 1:00pm EDT.
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ISM Manufacturing, Standard & Poor's, RF Monolithics/Murata Electronics

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