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T3's Take 3: Equities & Commodities Fall, Teva Buys Allergan


Today's financial recap and tomorrow's financial outlook.

Today at T3 Live

"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way - in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only." - Charles Dickens, A Tale of Two Cities, 1859

When Dickens first shared these thoughts he was alluding to London and Paris during the era of the French Revolution. Were Dickens to reappear as an astute financial news reporter, I think he might share the same thoughts for the two worlds of technology stocks and gold today. For the former, things have never been better.  For the latter, things have never been worse... Click here to read more

World Markets Take a Hit

Friday's slump persisted in US markets today as the S&P 500 closed down 0.6%, while NASDAQ fell 1.0%. The pressure was on today after a sharp drop in overseas markets, particularly China. The Shanghai Composite shed 8.5%, and the Hang Seng dropped 3.1% as investors were scared by weak Chinese economic data. Monday's drop in the Shanghai was the largest in eight years. The slump in China appeared to have caused a sell-off in Europe as well with the German DAX and French CAC each down nearly 3%.

The Chinese government reiterated its willingness to pump money into the stock market by buying shares, and that it will prosecute anyone who seen to be maliciously shorting stocks.

Tumbling Commodity Prices

Gold prices hit their lowest level in 5 years last week, hit by the calm in Greece, and hints of an interest rate rise in the US. But prices have been on the rise for the past two days.

Crude oil prices were red again today, nearly dropping through $47 towards yearly lows. Fears of over supply and expected weaker demand from China is weighing on prices.

The fear of lower economic demand from China also caused a drop in other precious metals such as aluminum, iron ore, and copper. y denominated in US dollars.

Teva Forgets Mylan, Buys Allergan

Teva Pharmaceuticals (TEVA) announced that it would buy Allergan's (AGN) generics unit in a $40 billion deal.

Subsequently, Teva announced that it dropped its bid for Mylan (MYL).

The Allergan deal is expected to close in the first quarter of 2016. Teva's CEO Erez Vigodman stated that the move will help reinforce the company's new business model, accelerating growth and diversifying revenues through products and geography. Teva shares surged 16.4% todayl, while Allergan rallied 6.1%.

However, health care and biotech indices still finished lower.

Tuesday's Financial Outlook

US economic news for tomorrow will include the S&P Case-Shiller home price, Markit US PMI , July consumer confidence, and Richmond Fed Manufacturing reports.

Overseas economic news includes Britain's GDP, and Japan's retail sales.

BP (BP), DuPont (DD), Ford Motor (F), JetBlue (JBLU), Merck (MRK), Pfizer (PFE), and UPS (UPS) will announce earnings before the open tomorrow. Gilead Sciences (GILD), US Steel (X), and CH Robinson (CHRW) will announce earnings after the close.

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