DealBook: U.S. Stocks Tumble on Another Day of Global Upheaval

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Monday, August 24, 2015
TOP STORY

U.S. Stocks Tumble on Another Day of Global Upheaval The global market turmoil spread across Asia, Europe and the United States, with the benchmark Standard & Poor’s 500-stock index falling nearly 4 percent.

Hot Tech Start-Ups May Face a Long and Bumpy Fall The worldwide market gyrations will filter down to Silicon Valley, with start-ups that need cash likely to be the first to undergo tougher scrutiny.

Apple Stock Recovers After Tim Cook Email Praises China Sales The chief executive of Apple said business was booming in China, where the company has long laid the groundwork to reap big sales.

Why the Stock Market Is So Turbulent This turmoil started in China, but it now includes key factors like oil prices, emerging markets and the Federal Reserve.

How Emotion Hurts Stock Returns People feel losses more sharply than gains. So watch ESPN or do anything to avoid looking at your sinking portfolio.

For the latest updates, go to NYTimes.com/DealBook
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DEALBOOK HIGHLIGHTS

White Collar Watch: A New Way to Charge Insider Trading The Justice Department pursued a different track in a recent case, arguing that it didn’t have to prove that a benefit flowed from a recipient to a tipper.

Buzz Tracker

Monsanto Said to Raise Syngenta Offer to About $47 Billion The U.S.-based company is seeking to draw the Swiss agro-chemical producer to the negotiating table after its earlier approach was rejected, according to people familiar with the matter.

Southern Co. Becomes No.2 U.S. Utility With $8 Billion AGL Deal The U.S. power producer said that the cash deal would build out its natural gas infrastructure and lower its dependence on power generation.

Belk Agrees to Be Bought by Sycamore for About $2.7 Billion The 127-year-old department-store chain concentrated in the southern U.S., agreed to be acquired by the private equity firm.

LOOKING AHEAD

Housing Data Several important data points on the United States housing market will be released this week. On Tuesday, a Standard & Poor’s/Case-Shiller index is likely to show that home prices in 20 cities rose over the year ending in June. Demand for homes is building, pushing up prices. Also on Tuesday, a report from the Commerce Department will probably show that purchases of new homes increased in July after a surprise decrease in June. More good news is expected from the National Association of Realtors on Thursday as the group reports pending sales of existing homes for July. Sales were unexpectedly down in June, but may well have bounced back. – Dionne Searcey

Cholesterol Fighters The Food and Drug Administration is expected by Thursday to approve Repatha, a powerful cholesterol-lowering drug from Amgen. That will set the stage for a market battle with Sanofi and Regeneron Pharmaceuticals, which won approval for their similar drug, Praluent, last month. Both drugs use the same mechanism and can lower LDL cholesterol, the so-called bad kind, by 40 percent or more beyond what can be achieved with statins like Lipitor. Insurers hope competition will lower costs. Praluent’s list price is $14,600 a year, prompting concerns that these new drugs will strain health plan budgets. – Andrew Pollack

Fit Topic for the Fed in Jackson Hole Janet L. Yellen, the Federal Reserve chairwoman, is skipping the annual gathering of central bankers in Jackson Hole, Wyo., which runs Thursday through Saturday. But other Fed officials, including the vice chairman, Stanley Fischer, will be on hand for the conference, hosted by the Federal Reserve Bank of Kansas City. This year’s topic, “Inflation Dynamics and Monetary Policy," is particularly timely. The Fed is struggling to decide whether inflation is strong enough to start raising interest rates, and the next meeting of its policy-making committee is coming up in mid-September. – Binyamin Appelbaum

Mylan Considers Perrigo Bid on Friday Shareholders in Mylan, a big maker of generic drugs, are scheduled to vote on Friday on a matter related to the company’s $36 billion hostile takeover bid for another pharmaceutical company, Perrigo. The vote – on whether Mylan can issue new stock for the offer – will be a pivotal step in moving forward with that bid. While an influential advisory firm has recommended that investors vote no, two of Mylan’s biggest shareholders have publicly supported the Perrigo offer. – Michael J. de la Merced

Japan Faces Consumer Price Decline Government data, due on Friday, is expected to show Japan’s core consumer prices fell 0.2 percent in July from a year ago. Japan’s core consumer price index rose 0.1 percent in June. Prime Minister Shinzo Abe has been trying to pull the economy out of nearly two decades of deflation through a stimulus program known as Abenomics. Although the program has increased profits at big corporations, it has also left many ordinary Japanese saying they feel few benefits. Japan’s economy has struggled to grow consistently. Last week, Japan announced its gross domestic product fell at an annualized rate of 1.6 percent in the three months through June, weighed down by dwindling exports and weaker consumer spending. Despite the recent economic contraction, analysts have expressed optimism that consumption will pick up and Japan will eventually return to growth in the current quarter.

For the latest updates, go to NYTimes.com/DealBook
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Quotation of the Day

“People just realized, ‘This is a little stupid, and there are some great opportunities.'"

Ryan Larson, the head stock trader at RBC Global Asset Management, said that after the initial market declines clients were canceling their sell orders and putting in requests to buy stocks.


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