The Dow ends lower, under 17,000
Stocks closed lower today for the second session in a row as investors waited cautiously for the latest earnings session to begin. The Dow (^DJI) ended under 17,000, down 118 points at 16,906, while the Nasdaq (^IXIC) finished 60 points lower at 4,391 and the S&P 500 (^GSPC) fell 14 points to 1,964.
Shares of Alcoa, which reported after the close, rose 11 cents, or 0.7%, to $14.85, then added another 24 cents in the first hour of after-hours trading following better-than-expected earnings.
On the economic front, the Labor Department reported that the number of job openings rose to its highest level since June 2007. There were 4.64 million job openings in May according to the Job Openings and Labor Turnover Survey, known as JOLTS. That’s up from 4.46 million openings in April.
NeuroMetrix (NURO) shares gained a whopping 23.8% to close at $2.34 after the Food and Drug Administration approved a wearable device to treat chronic pain for over-the-counter use.
U.S.-based AbbVie (ABBV) raised its offer to buy pharmaceutical company Shire (SHPG) to $51 billion or about $87 a share. It was it's fourth offer since May to buy Shire, a U.K. company that’s domiciled in Ireland, and according to U.K. rules, it has until July 18 to make a firm bid or walk away. AbbVie shares fell $1.71 to close at $55.69 while Shire shares fell $4.55 to end at $232.92.
American Apparel (APP) fell deeper into penny stock territory, closing 5% lower at 84 cents a share after Lion Capital sent the company a default notice for a $9.9 million loan. Lion Capital is seeking repayment four years early because terms of the loan state it must be repaid if company founder Dov Charney is no longer CEO. American Apparel’s board ousted Charney on June 18. The company rejected Lion Capital’s default notice saying it can’t demand payment until July 19 when Charney's term as chairman and CEO officially ends.
The airline sector selloff continued with several carriers down today. Delta (DAL) shares fell 46 cents to $36.44 closed. JetBlue (JBLU) lost 13 cents to close at $10.49 and Southwest Airlines (LUV) fell 47 cents to $16.70.
Bob Evans (BOBE), which also reported earnings after the close today, lost 35 cents during the session and another $1.28 in after-hours trading following its earnings report. Tomorrow, the Federal Reserve will release the minutes from last month’s policy meeting.
