The new year has started with a huge pharma deal as it emerged that Bristol-Myers Squibb Co (NYSE:BMY) offered to buy cancer drug company Celgene Corp (NASDAQ:CELG) in a cash and stock deal valued at an eye-popping $74 billion.
Bristol-Myers plunged 14% to $44.86, while Celgene rallied 26% to $84.21.
The boards of both companies have already approved the deal. The combined company will have nine products and more than $1 billion in annual sales.
READ: Apple shares could fall as low as US$120 after shock profit warning, claims RBC
Celgene is set to lose patent protection by 2022 for Revlimid, its top-selling multiple myeloma drug.
Early last year, Celgene agreed to buy the part of Juno Therapeutics that it didn't already own for about $9 billion in cash to gain access to Juno's pipeline of cancer drugs.
Apple (NASDAQ:AAPL) set the tone for markets Thursday, with shares down 9.1%, to $143.57 after Wednesday's shock revenue warning from CEO Tim Cook on weaker-than-expected iPhone demand in China.
The tech giant had expected to generate revenue of US$91 billion in the final quarter of 2018 but said the amount would be closer to US$84 billion.
Goldman Sachs Group Inc said that Apple will likely have to lower forecasts for the full year.
"We see the potential for further downside to FY19 numbers depending on the trajectory of Chinese demand in early 2019," said analyst Rod Hall in a note to clients. "We have been flagging China demand issues since late September, and Apple's guidance cut confirms our view."
Airline stocks slid after Delta Air Lines Inc (NYSE:DAL) lowered its outlook for revenue growth. American Airlines Group (NASDAQ:AAL) was the group's biggest loser, falling 10% to $29.27. Delta (NYSE:DAL) fell 9.2% to $45.54 while Alaska Air Group Inc (NYSE:ALK) decreased 6.5% to $57.53.