U.S. stocks fell after the shares of biotechnology companies


Moscow. October 22. U.S. stock indexes on Wednesday have decreased on 0,3-0,8% after the shares Valeant Pharmaceuticals International Inc., pulled down the entire biotech sector.

The decline of Standard & Poor’s 500 nearly 0.6% became maximum for the last week, the Agency said Bloomberg.

46 earnings already reported for the third quarter of the companies whose shares are included in the calculation of the S&P 500, approximately 47% of the cases exceeded analysts ‘ forecasts, while revenue was better than expected in 74% of cases.

“The reports so far have been rather good, than bad, but the actual data flow will be in the next two weeks”, – noted managing Director Wedbush Securities Inc. Michael James.

Share prices of major pharmaceutical company Valeant on the basis of trades fell by 19%. Citron Research has published an article in which Valeant accused of using a network of specialized pharmacies for the overstatement of revenue.

According to Citron, the company has created a number of fake pharmacies specializing in the sale of rare drugs, and registered drugs supplies them as part of their revenue. In particular, in the investigation included the Philidor company, which presumably have a network of pharmacies. Approval Citron, Valeant is the owner of the company, which was not previously known.

The market value of the Internet company Yahoo! Inc. decreased by 5.2% amid weaker-than-expected revenue growth in the third quarter and the forecast decline in the last quarter of 2015.

Net profit and revenue of the U.S. EMC Corp., a world leading developer and provider of technologies and solutions for information infrastructures, in July-September was below market expectations. The statements caused a decline in the rate of securities of the company by 6.3%.

The share price of Coca-Cola fell by 0.2%. The world’s largest manufacturer of soft drinks has reduced profit and revenue last quarter.

At the same time, the capitalization of Boeing Co. rose 1.7%. The manufacturer of the aircraft increased its net profit and revenue in the last quarter, and also improved annual forecast.

General Motors shares soared 5.8%, the best daily price rise since 2012. Carmaker reported higher adjusted earnings in the last quarter by 55%, despite the decrease in revenue due to the negative impact of currency fluctuations.

The technology provider for the production of semiconductors KLA-Tencor Corporation. soared 19% on news that Nortel networks Corp. buys it for $10.6 billion

In addition, the manufacturer of storage solutions at Western Digital Corp. announced the purchase of rival SanDisk Corp. for $19 billion as a result share prices of SanDisk were up 2.1%.

The Dow Jones Industrial Average on Wednesday fell to 48.5 points (0,28%) – to 17168,61 item.

Standard & Poor’s 500 at the end of trading fell by 11,83 paragraph (0,58%), amounting to 2018,94 item.

The value of the Nasdaq Composite over the day decreased by 40,85 points (0,84%) – to 4840,12 item.

Transaction volume was about 6.8 billion shares, which is 8% less than the average daily figure for the last three months.