Stocks Opened Lower on World Bank’s Outlook
U.S. stocks opened lower on Monday after the World Bank cut its view of China growth. The Dow Jones Industrial Average lately fell 44.39 points, or 0.33%, to 13,565.76. The S&P 500 index declined 6.72 points, or 0.46%, to 1,454.21. The Nasdaq Composite lost 19.37 points, or 0.62%, to 3,116.82.
The World Bank on Monday cut its forecasts for economic expansion in developing East Asia, and warned of the potential for the exit of more than one country from the euro zone to wipe over two percentage points off growth next year. The institution tipped the region to grow 7.2% in 2012, down from a projection of 7.6% in May, with that rate picking up to 7.6% in 2013, still lower than an original forecast of 8.0%.
UnitedHealth Group Inc.(UNH) agreed to acquire 90% of Amil Participacoes SA (AMPIY, AMIL3.BR) for about $4.3 billion in cash as the health company targets the expanding Brazilian economy. UnitedHealth said Monday the deal is worth $4.9 billion, including realizable Brazilian tax benefits worth an estimated $600 million.
Wal-Mart Stores and American Express are teaming up on a reloadable prepaid card for shoppers. The two companies said Monday that Bluebird, which began during a pilot program late last year, will have no minimum balance and no monthly, annual or overdraft fees. They say that the only fees that will be associated with the card will be transparent and within the user’s control, such as out of network ATM withdrawals by consumers that don’t have direct deposit.
Alliance Financial Corp.(ALNC) agreed to a takeover by NBT Bancorp Inc.(NBTB ) in a deal valued at roughly $233 million that combines two upstate New York lenders. Under the deal, Alliance holders will receive 2.1779 shares of NBT common stock, or roughly $48.24 a share based on Friday’s close.