NEW YORK (Reuters) – Stocks sold off on Friday afternoon with all three major stock indexes dropping more than 1 percent.
The Dow Jones industrial average was down 122.04 points, or 1.11 percent, at 10,868.54. The Standard & Poor's 500 Index was down 11.86 points, or 1.04 percent, at 1,128.79. The Nasdaq Composite Index was down 27.20 points, or 1.14 percent, at 2,353.23.
(Reporting by Angela Moon, Editing by Jan Paschal)
NEW YORK (Reuters) – Shares in Alcoa Inc slipped on Tuesday despite posting a strong second-quarter profit, as some analysts voiced concern over a recent drop in aluminum prices.
In early trading on the New York Stock Exchange, the company's stock was down 10 cents at $15.82, while aluminum fell to $2,451 per tonne in London, its lowest price since late January.
UBS cut Alcoa's price target to $16.25 from $16.75 and maintained a "neutral" investment rating on the aluminum producer, which kicked off the earnings season on Monday with a profit that matched Wall Street estimates. Its revenue beat expectations, largely on higher metal prices and volumes.
Analyst David Lipschitz, of Credit Agricole Securities, said his third-quarter estimate of 24 cents per share was lower than Alcoa's second-quarter 32 cents-per-share profit "as we expect prices for aluminum to be lower than in the second quarter.
"We remain concerned that aluminum is a difficult industry in which to capture higher prices as Alcoa continues to see costs pressure," he wrote in a research note.
Tony Rizzuto, of Dahlman Rose & Co, was more positive, reaffirming his "buy" rating on Alcoa and a $22 price target
"The company is effectively managing an environment of rising raw material costs while expanding margins, and is well positioned to benefit from what we believe to be a bullish environment for aluminum."
(Reporting by Steve James; Editing by Maureen Bavdek)
TORONTO (Reuters) – The London and Toronto stock exchanges abandoned plans for a C$3.6 billion merger on Wednesday, as it became clear they would not win enough shareholder support for their transatlantic alliance.
"It is clear that the two-thirds threshold required to approve the merger would not have been achieved," Toronto Stock Exchange operator TMX Group said in a statement.
The London Stock Exchange would have owned 55 percent of the new venture, designed as a powerhouse in resource and energy equity.
(Reporting by Pav Jordan; editing by Janet Guttsman)
