Stocks closed lower Wednesday as market participants took profits following a red-hot run higher. Indeed, the three main indexes are hovering near record highs and are poised to close out May with solid gains.
At the close, the Nasdaq Composite was down 0.6% at 16,920 and the S&P 500 was off 0.7% at 5,266. The Dow Jones Industrial Average fell 1.1% to 38,441 as UnitedHealth Group (UNH) slumped 3.8% after the health insurer forecast "some disturbance" in its Medicaid business. At roughly $484, UNH stock has the greatest weighting of all 30 stocks in the price-weighted Dow.
ConocoPhillips to buy Marathon Oil
In other single-stock news, Marathon Oil (MRO) jumped 8.4% after ConocoPhillips (COP, -3.1%) agreed to buy the Texas-based exploration and production company in an all-stock deal valued at $22.1 billion, including debt. The transaction is expected to boost COP's shale assets and could close later this year if all goes as planned.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
This is just the latest in a string of merger-and-acquisition (M&A) news coming from the energy sector. Most recently, Hess (HES, -2.1%) shareholders on Tuesday approved a $53 billion merger with Chevron (CVX, -1.4%) – though the deal has a few more hurdles to clear before it closes.
"Consolidation, especially among oil and gas producers, has been a key dealmaking trigger in the last several months due to reduced oil prices, economic pressures and increased support for achieving net zero plans," says Mark Williams, chief revenue officer for the Americas at dealmaking platform Datasite.
The deals are being driven by large producers looking to strengthen their market positions amid maturing business models, Williams adds, "especially to secure lower-cost reserves." He anticipates this trend will continue into the second half of this year.
Chewy has its best day ever after earnings
Outside of the oil patch, Chewy (CHWY) surged 27.1% – its biggest one-day gain on record – after earnings. For its fiscal Q1, the online pet supplies retailer disclosed higher-than-expected earnings of 31 cents per share, up 55% year-over-year. Revenue increased 3.1% to $2.9 billion.
Chewy also unveiled a $500 million stock buyback plan, representing more than 5% of its market cap.
American Airlines dives after cutting Q2 forecast
American Airlines (AAL) was another notable mover, diving 13.5% after the air carrier cut its second-quarter guidance and said its chief commercial officer, Vasu Raja, is leaving the company in June.
"Guidance held out as long as it could, but it's clear AAL's long-term strategy will take some time to execute," said Jefferies analyst Sheila Kahyaoglu, who downgraded the stock to Hold from Buy and lowered her price target to $12 from $17.
Related content
- When Is the Next CPI Report?
- All 30 Dow Jones Stocks Ranked: The Pros Weigh In
- Robinhood Unveils Big Stock Buyback Program: What To Know
-
Alphabet Stock Pops After Google Antitrust Ruling: What to KnowGOOGL stock is soaring Wednesday after a judge ruled that Alphabet does not have to divest its Chrome browser.
-
7 Mistakes to Avoid When You First Start InvestingInvesting brings the opportunity to build wealth, but there are plenty of mistakes that can be made. Here are seven common ones and how they can be avoided.
-
Alphabet Stock Pops After Google Antitrust Ruling: What to Know
GOOGL stock is soaring Wednesday after a judge ruled that Alphabet does not have to divest its Chrome browser.
-
7 Mistakes to Avoid When You First Start Investing
Investing brings the opportunity to build wealth, but there are plenty of mistakes that can be made. Here are seven common ones and how they can be avoided.
-
A Fidelity Fund Misses Out on Soaring Bank StocksThe Fidelity International Growth Fund has outperformed over the long term, but its lagging exposure to bank stocks has weighed on more recent returns.
-
More Than Money: The Hidden Toll of Financial Abuse of Older AdultsFinancial abuse from schemes involving tech support, government impostors, false sweepstakes, grandchild hoaxes and online shopping issues can cause thousands of dollars in losses.
-
I'm a Financial Planner: Here Are Three High-Impact Ways to Make a Difference With Your DollarsThe world often feels out of control, but here are three ways to use your money — through investments, charitable giving and political donations — to help create a more just and sustainable future.
-
Stocks Slide to Start September: Stock Market TodaySeasonal trends suggest tough times for the stock market as we round into the end of the third quarter.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
Where is the Foreign Dividend Boom Headed?It's been a golden six months for foreign dividend stocks, but can any be relied on for predictable income going forward? Here are some options.
