(MENAFN- ProactiveInvestors) U.S. stocks reversed early gains as another slump in oil prices weighed on equity markets with investors instead chosing safe haven assets like government bonds and gold.
As of noon in New York the Dow Jones Industrial Average was down 86 points at 17651 while the Nasdaq fell 34 points to 4670 and the S&P 500 lost 14 points to 2030.
The losses came after stock futures gained this morning on reports the European Central Bank is planning to design a sovereign debt purchase program based on the paid-in capital contributions made by eurozone central banks. The report comes ahead of the ECB's next meeting on January 22 at which a full blown QE program is expected to be announced to stimulate economic growth.
But oil prices brought down investors scaring them off from riskier assets like equities. Crude oil prices extended their slide today after key brokerages slashed their price forecasts again including which cut its Nymex 2015 crude prediction to $47.15 a barrel in 2015 from $73.75 previously. WTI crude in New York trade was last down $2.11 or over 4% at $46.26 a barrel.
Energy companies () and () were leading the losses on the Dow both down around 2%.
In corporate activity () will unofficially kick off the earnings season when it reports quarterly results after the closing bell. A number of big banks will begin reporting midweek as well.
It was a busy day for healthcare M&A with Shire (NASDAQ:SHPG) saying it is acquiring () a maker of treatments for rare diseases for $5.2 billion or $46 a share a 51% premium to its share price on December 16 before rumours of the deal surfaced. Shares of NPS were up over 8% on Monday.
Roche also said it is acquiring a majority stake of Foundation Medicine (NASDAQ:FMI) for more than $1 billion. Foundation is a leader in the growing area of gene sequencing of tumour samples. Shares of Foundation doubled in today's trading.
In addition Tekmira Pharamceuticals (NASDAQ:TKMR) announced a merger with OnCore Biopharma which will create an HBV company focused on developing a cure for hepatitis B.
In the retail sector shares of Tiffany () fell more than 12% after it cut its fiscal 2015 profit outlook saying holiday sales were disappointing.
Lululemon (NASDAQ:LULU) meanwhile rallied more than 8% after raising its profit and sales outlook for the fiscal fourth quarter on the back of strong holiday results.
Elsewhere () said it would buy MWI Veterinary Supply (NASDAQ:MWIV) in a deal valued at $2.5 billion.
In other markets the Hang Seng Index in Hong Kong closed up 0.45% while Japanese markets were closed for a public holiday. European markets finished mostly higher as of recent closing prices. Gold futures rose $11 to $1227 an ounce in in New York.
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