U.S. shares extended declines to a fourth straight session, weighed by weak quarterly earnings that largely reflect a slowing growth in global economy. The S&P 500 (INDEXSP:.INX) skidded 0.5 percent to 2,092.39. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) slipped 0.5 percent to 17,643.76, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) lost 0.2 percent to 5,135.47. Most followed shares included Anthem, Cigna, Amazon, Starbucks, Visa, Xerox, Biogen, Newmont Mining, TripAdvisor, American Airlines, AT&T, and AbbVie.
In financials, Anthem (NYSE:ANTM) fell 2.9 percent to $150.79, after saying it will buy Cigna (NYSE:CI) in a deal valued at $54.2 billion, creating the largest U.S. health insurer by membership. Indianapolis, Indiana-based Anthem said it will pay $103.40 in cash and 0.5152 of its shares for every Cigna share. The transaction is valued at $183.36 per share based on Anthem's yesterday close of $155.21. The deal is the biggest ever in the health insurance industry.
Visa (NYSE:V) rallied 4.5 percent to $75.01 after the world's largest payments network reported profit that beat predictions, fueled by double-digit growth in payment volume despite a similar rise in operating expenses.
In consumer shares, Amazon.com (NASDAQ:AMZN) surged 16.3 percent to $560.96. The online retailer reported an unexpected second-quarter profit, forecast third-quarter revenue above estimates, and reported strong sales in North America, and unprecedented growth in its popular Prime two-day unlimited shipping service. Net income was $92 million, or $0.19 per diluted share, for the April-to-June quarter, compared with a loss of $126 million, or $0.27 per share, a year earlier. Revenue rose 19.9 percent to $23.19 billion. Analysts on average had expected a loss of 14 cents per share and revenue of $22.39 billion, according to Capital IQ data.
Starbucks (NASDAQ:SBUX) climbed 2 percent to $57.67 after the world’s biggest coffee-shop chain posted a 22 percent increase in quarterly profit and an 18 percent jump in revenue. Its board also authorized the repurchase of an additional 50 million shares–which would be worth about $2.78 billion based on yesterday’s closing price.
Xerox (NYSE:XRX) rose 3 percent to $11.14 even as the provider of printers and business services provided a downbeat outlook and reported revenue and profit fell in the latest quarter. Currency fluctuations and the company’s document-technology business dragged on results.
TripAdvisor (NASDAQ:TRIP) sank 12.1 percent to $82.02 after the online travel company reported earnings and sales fell short of projections as expenses soared.
American Airlines (NASDAQ:AAL) fell 1.9 percent to $41.79 after the company's quarterly revenue slightly missed the Street consensus. The company also announced the authorization of an addition $2 billion in share buybacks.
Lear (NYSE:LEA) added 2.1 percent to $101.10 after the world's second-largest maker of automobile seats said its profit grew 22 percent in the June quarter, helped by sales in its seating segment that benefited from an acquisition.
In health-care stocks, Biogen (NASDAQ:BIIB) tumbled 18.6 percent to $313.30 after the maker of multiple sclerosis drug Tecfidera cut its 2015 earnings forecast as sales growth for its key multiple-sclerosis drug continues to weaken.
AbbVie (NYSE:ABBV) slipped 3.2 percent to $68.26 after reporting weaker-than-expected revenue growth in its latest quarter, though adjusted profit came in above expectations.
In other stocks, Newmont Mining (NYSE:NEM), the biggest U.S. gold miner, slipped 0.6 percent to $17.50 after quarterly results missed estimates.
AT&T (NYSE:T) rose 3.2 percent to $35.03 after reporting better-than-expected adjusted earnings growth in the second quarter, though revenue narrowly missed expectations weighed down by foreign-exchange impacts.