The Dow Jones Industrial Average fell 122 points, or 0.36%, while the S&P 500 and the Nasdaq Composite were weaker by 0.22% and 0.04%, respectively.
|I:DJI||DOW JONES AVERAGES||33837.13||-240.50||-0.71%|
|I:COMP||NASDAQ COMPOSITE INDEX||13784.341392||-130.42||-0.94%|
In stocks, Canadian National Railway offered $30 billion for Kansas City Southern, a 21% premium to an agreement reached last month with Canadian Pacific Railway Ltd. The offer, if accepted, will pay Kansas City Southern shareholders $325, including $200 a share in cash and 1.059 Canadian National shares for each Kansas City Southern share they own.
|KSU||KANSAS CITY SOUTHERN||296.87||+40.61||+15.85%|
In earnings, Dow component Johnson & Johnson reported $100 million in sales from its single-shot COVID-19 vaccine that was last week put on hold by the U.S. Food and Drug Administration due to blood clotting concerns. Both earnings and revenue topped Wall Street estimates.
|JNJ||JOHNSON & JOHNSON||166.89||+4.25||+2.61%|
Fellow Dow member Proctor & Gamble Co. beat on both the top and bottom lines amid strong demand for its cleaning products. The company plans to raise prices by mid-to-high single-digit percentages for some products beginning in September.
|PG||PROCTER & GAMBLE CO.||138.27||+1.30||+0.95%|
|IBM||INTERNATIONAL BUSINESS MACHINES CORP.||138.63||+5.71||+4.29%|
Rounding out Dow earnings, International Business Machine Corp. topped estimates as its cloud-computing unit fueled the strongest quarterly sales growth in over two years and insurer Travelers Companies Inc. exceeded expectations despite winter storms causing casualty losses to more than double from a year ago.
|UAL||UNITED AIRLINES HOLDINGS||50.03||-4.96||-9.02%|
Elsewhere, United Airlines Holdings Inc. posted a larger-than-expected adjusted net loss of $2.4 billion as the company grappled with higher jet fuel prices and reduced demand caused by COVID-19. The airline expects EBITDA to turn positive later this year despite international travel demand remaining 70% below 2019 levels.
Netflix Inc. will report its quarterly results after the closing bell.
In commodities, West Texas Intermediate crude oil rose 17 cents to $63.55 per barrel and gold slid $3.10 to $1,767.50 an ounce.
Overseas markets were mostly lower.
France’s CAC 40 paced the decline in Europe, trading down 1.32%, while Britain’s FTSE 100 and Germany’s DAX 30 were weaker by 1.07% and 0.81%, respectively.
In Asia, Japan’s Nikkei 225 plunged 1.97%, China’s Shanghai Composite index slipped 0.13% and Hong Kong’s Hang Seng index ticked up 0.1%.