Ferrari Roars Ahead After IPO, Valeant Rocked by ‘Pharmaceutical Enron’ Accusation
October 22, 2015 6:30 am
US Stocks fell in the previous session as a fall in commodity prices hit energy stocks and a massive share price drop from Valeant Pharmaceuticals hit the healthcare sector The Dow fell 48 points to close at 17,168, while the S&P500 dropped 11 points to close at 2018. Meanwhile, Asia saw a mixed session after further concerns about the health of the Chinese Economy weighed on markets and investors were cautious on taking positions ahead of the ECB meeting today.
The Euro stood at $1.1342, barely moving this week ahead of the ECB’s meeting. Against the Yen, the Dollar fell 0.2% to 119.69, ahead of next week’s policy meetings by both the U.S. Federal Reserve and the Bank of Japan. The Australian Dollar recovered to $0.7226 after tumbling to $0.7202 on Wednesday, its lowest in a week. The Canadian dollar fell to C$1.3149 per U.S. dollar on Thursday, its lowest in 2 1/2 weeks, as the Canadian central bank lowered its growth forecasts for 2016 and 2017. It has since recovered to C$1.3112.
Brent futures dropped to a three-week low of $47.50 per barrel on Wednesday and last stood at $48.07. U.S. crude futures settled at $45.55 a barrel, after slumping to $44.86 a barrel, the lowest since Oct. 2, in earlier trade. Spot gold was trading at $1168 per troy ounce.
Within the equity space, Ferrari roared ahead on its first day of trading on Wednesday as the luxury sports car maker celebrated the first step toward becoming an independent company. The stock traded as high as $60.97, or 17% above the $52 a share price of the IPO that raised $893m for parent company Fiat Chrysler Automobiles. Shares closed at $55, up 5.8%.
Valeant Pharmaceuticals was hit heavily yesterday after activist short-selling firm Citron Research accused the firm of channel stuffing, using mail-order pharmacies which it owns to artificially boost sales of some of its high priced products. Valeant shares plummeted by close to 40% after Citron’s report, which actually called Valeant the ‘pharmaceutical Enron’. The company later issued a press release strongly denying the veracity of the report’s claims, and Hedge Fund Billionaire Activist Bill Ackman bought an additional 2 million shares in the company, publicly declaring his support for the beleaguered company. However, Valeant stock still closed down by 19.37%.
US Stocks fell in the previous session as a fall in commodity prices hit energy stocks and a massive share price drop from Valeant Pharmaceuticals hit the healthcare sector The Dow fell 48 points to close at 17,168, while the S&P500 dropped 11 points to close at 2018. Meanwhile, Asia saw a mixed session after further concerns about the health of the Chinese Economy weighed on markets and investors were cautious on taking positions ahead of the ECB meeting today.
The Euro stood at $1.1342, barely moving this week ahead of the ECB’s meeting. Against the Yen, the Dollar fell 0.2% to 119.69, ahead of next week’s policy meetings by both the U.S. Federal Reserve and the Bank of Japan. The Australian Dollar recovered to $0.7226 after tumbling to $0.7202 on Wednesday, its lowest in a week. The Canadian dollar fell to C$1.3149 per U.S. dollar on Thursday, its lowest in 2 1/2 weeks, as the Canadian central bank lowered its growth forecasts for 2016 and 2017. It has since recovered to C$1.3112.
Brent futures dropped to a three-week low of $47.50 per barrel on Wednesday and last stood at $48.07. U.S. crude futures settled at $45.55 a barrel, after slumping to $44.86 a barrel, the lowest since Oct. 2, in earlier trade. Spot gold was trading at $1168 per troy ounce.
Within the equity space, Ferrari roared ahead on its first day of trading on Wednesday as the luxury sports car maker celebrated the first step toward becoming an independent company. The stock traded as high as $60.97, or 17% above the $52 a share price of the IPO that raised $893m for parent company Fiat Chrysler Automobiles. Shares closed at $55, up 5.8%.
Valeant Pharmaceuticals was hit heavily yesterday after activist short-selling firm Citron Research accused the firm of channel stuffing, using mail-order pharmacies which it owns to artificially boost sales of some of its high priced products. Valeant shares plummeted by close to 40% after Citron’s report, which actually called Valeant the ‘pharmaceutical Enron’. The company later issued a press release strongly denying the veracity of the report’s claims, and Hedge Fund Billionaire Activist Bill Ackman bought an additional 2 million shares in the company, publicly declaring his support for the beleaguered company. However, Valeant stock still closed down by 19.37%.
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