Investors watch Syria; Lew rewrites inversion rules; Apple's Beats go on?
U.S. stocks are mixed as geopolitical concerns resurfaced after the U.S. joined its Arab allies in launching the first airstrikes on Islamic State targets in Syria Monday night.
Investors also weighed the Obama Administration’s move to combat tax inversions. Treasury Secretary Jack Lew introduced new policies aimed at preventing companies from moving their headquarters to countries with lower tax rates. The new rules on tax inversions apply to any deals that haven't closed by Monday. Some U.S. companies with pending cross-border inversion deals, include Medtronic (MDT) and Covidien (COV); AbbVie (ABBV) and Shire (SHPG); Chiquita Brands (CQB) and Fyffes(FYFFF); Burger King (BKW) and Tim Hortons (THI).
Related: Ebola drugs to be fast-tracked in W. Africa; Ascena Retail shares tumble; Philips to split
Tekmira Pharmaceuticals (TKMR) and Sarepta Therapeutics (SRPT) are in the spotlight this morning after a global health charity, the Wellcome Trust, announced a $5.25 million grant to fund clinical trials in West Africa for several experimental Ebola drugs, including treatments from Tekmira, Sarepta and Mapp Biopharmaceutical. Separately, the U.S. Food and Drug Administration and Health Canada have approved the use of Tekmira's experimental Ebola drug (TKM-Ebola) for use in patients with serious diseases who cannot participate in controlled clinical trials. The Ebola epidemic has killed more than 2,800 people in West Africa since it began in Guinea earlier this year.
Ascena Retail Group (ASNA) shares fell in early trading. The owner of clothing chains such as Dress Barn and Lane Bryant issued a weaker-than-expected outlook for the full year after it reported earnings and revenue that missed analysts' expectations. The company blamed the weakness on “challenging tween market conditions” for its Justice brand and inventory issues at Lane Bryant.
Philips (PHG) shares rose ahead of the bell. The Dutch electronics conglomerate said it would split the 120-year old company into two, separating its lighting unit from its healthcare and technology division. Both companies will continue to use the Philips brand and will be based in the Netherlands. The move is the latest effort by the company to streamline its operations.
Google's (GOOGL) fight with the EU is far from over. Earlier this summer, Google agreed to comply with the EU's right to be forgotten laws, but now the EU has fresh complaints against Google in its antitrust investigation. And the EU commissioner is saying Google must shape up or face charges. The company is also subject to massive fines.
Related: Did Apple forget about Dre?
And months after Apple (AAPL) purchased Beats for a cool $3 billion, many are wondering what the company’s plans are for the music streaming service and popular headphone maker.
Although the iPhone maker is denying a report by TechCrunch that is plans to shut down the Beats Music streaming services, it has also failed to detail what it's going to do with the company.
