U.S. stocks start week on up note, then fall
NEW YORK, July 21 (UPI) -- Better-than-expected earnings by Bank of America and a deal in the pharmaceutical world helped drive U.S. stock indexes up initially Monday but then stocks reversed.
The Dow Jones industrial average was off 44.54 or 0.39 percent to 11,452.02 shortly after noon. The Standard and Poor's 500 dipped 3.41 or 0.27 percent to 1,257.27. The Nasdaq composite index posted an 11.11 percent drop or 0.49 percent to 2,271.67.
Even though Bank of America reported a 41-percent profit loss for the second quarter, it still beat Wall Street earnings estimates, sending its shares up more than 7 percent, The Wall Street Journal reported.
Roche Holding AG, the Swiss drug-making giant, offered to buy the the 44-percent stake of biotech company Genentech that it doesn't already own for $43.7 billion. Genentech shares were up nearly 14 percent above the Roche offer.
The 10-year U.S. Treasury note was off 1/32, yielding 4.08 percent.
Overseas, the euro traded at $1.5871, compared to $1.5845 Friday. Against the yen, the dollar was at 106.77 compared to 106.94 yen Friday.
Tokyo's Nikkei index was closed Monday for a national holiday.
Weather, Iran push oil prices up
NEW YORK, July 21 (UPI) -- Crude oil trading began the week up Monday, trading $2.41 higher at $131.29 per barrel on the New York Mercantile Exchange.
No movement in talks with Iran on its nuclear policy and the threat of Tropical Storm Dolly worsening pushed the prices up, The Wall Street Journal reported Monday.
"The weather and Iran have much in common it seems -- both being highly unpredictable and both having the potential to have a significant impact on prices," Michael Davies, senior oil analyst at Sucden, told the Journal.
Meanwhile, natural gas prices began the day up 0.159 cents at $10.798 per million British thermal units.
Heating oil began the trading session up 6.8 cents to $3.76 a gallon while gasoline posted a 5.7-cent gain at $3.22 per gallon.
At the pump, the average price for a gallon of unleaded gasoline nationwide Monday was $4.069, compared to $4.105 reported Friday by the AAA's Daily Fuel Gauge Report.
Icahn, Yahoo! reach agreement
SUNNYVALE, Calif., July 21 (UPI) -- Corporate raider Carl Icahn and Yahoo! have settled their proxy battle, with the announcement Monday that Icahn will join the company's board.
The agreement also calls for the eight members of board of directors to stand for re-election at the Aug. 1 annual meeting and adds two members. One board member, Robert Kotick, is stepping down.
Icahn owns nearly 5 percent of Yahoo! and favors a deal with Microsoft, which offered $47.5 billion for the Internet portal. Yahoo! turned it down and the offer was abandoned.
"While I continue to believe that the sale of the whole company or the sale of its search business in the right transaction must be given full consideration, I share the view that Yahoo's valuable collection of assets positions it well to continue expanding its online leadership and enhancing returns to stockholders," Icahn said in a statement distributed by Yahoo!.
"I believe this is a good outcome and that we will have a strong working relationship going forward. "
"This agreement will not only allow Yahoo! to put the distraction of the proxy contest behind us, it will allow the Company to continue pursuing its strategy of being the starting point for Internet users and a must buy for advertisers," Yahoo! co-founder and Chief Executive Officer Jerry Yang said.
Roche to buy rest of Genentech
BASEL, Switzerland, July 21 (UPI) -- Swiss drugmaker Roche Holding AG has offered $43.7 billion -- $89 a share -- for the U.S. biotech firm Genentech.
Roche already has a 56-percent stake in Genentech and said it expects Genentech to appoint outside financial and legal advisers to help it evaluate the offer, The Wall Street Journal reported.
The deal would give Roche full control of one of the world's top biotech operations but goes against its longstanding policy of keeping subsidiaries at a distance. The offer represents a premium of 8.8 percent on Friday's closing price for Genentech shares.
The Financial Times reported Roche intends to allow Genentech autonomy over research and early development but will more closely integrate and share intellectual property -- something currently precluded by minority ownership.
Roche estimates the deal will save as much as $850 million a year.
Genentech refused comment.
