After being closed for President's Day Monday, the Major Indexes began the trading week mixed on Tuesday as investors digested another round of downtrodden economic data and news that Actavis agreed to acquire Forest Laboratories. The Dow faltered 0.2%, led by poor results from Coca-Cola (KO). Meanwhile, the S&P 500 picked up a modest 0.1% and the Nasdaq rose 0.7%, its eighth straight winning session.
The trading week began with the release of a weaker-than-expected manufacturing report which showed activity at an eight-month low, sparking economic fear in the hearts of investors. The Dow plunged 326 points, or 2.08%, its biggest loss in more than 7 months, while the S&P 500 plummeted 41 points, or 2.28%, and the Nasdaq faltered 107 points, or 2.61%
The trade deficit widened from $34.56 billion to $38.70 billion in December 2013. The Market Services PMI rose 1.0 point to a level of 56.7 in January. The Market Manufacturing PMI fell to a three-month low in January, registering at a level of 53.7. The ISM Manufacturing PMI fell 5.7 points to a level of 51.3 in January, missing forecasts of modest dip to 56.0.
When Is It OK to Take a Bite Out of the AAPL Pie? Earlier this week, Apple (AAPL) reported earnings that exceeded street forecasts, resulting in an immediate pop in the stock. There has, however, been no follow through in terms of the price, with much of the gain being given back the next day. [...]