Why Teva Pharmaceutical Industries, Pier 1 Imports, and Kinross Gold Slumped Today
Monday was an overall positive day for the stock market, through major benchmarks saw different reactions to events during the trading session. The Dow Jones Industrials posted solid gains to set another record, but moves for broader market benchmarks weren't quite as unambiguously positive. Investors were generally pleased at the prospect that the Federal Reserve will hold off until at least December before pushing interest rates higher, especially given the catastrophic effects of Hurricanes Harvey and Irma. Yet some stocks reacted negatively to this and other concerns. Teva Pharmaceutical Industries (NYSE: TEVA), Pier 1 Imports (NYSE: PIR), and Kinross Gold (NYSE: KGC) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Teva Pharmaceutical Industries fell 6% in the wake of the company making a strategic deal. The drugmaker said that it would sell its specialty global women's health business for $1.38 billion, with one private equity company buying out Teva's contraception, fertility, menopause, and osteoporosis assets for $703 million, while a second entity will spend $675 million for various emergency contraceptive products. Interim CEO Yitzhak Peterburg noted that the deal will bring the total cash available for the Teva's use to more than $2 billion, topping expectations among those following the company's strategic plans. The move will allow Teva to refocus on other parts of its business, and bullish investors hope that Teva will therefore be able to recover fully from its recent slump.
Image source: Teva Pharmaceutical Industries.
Source: Fool.com
