Wall Street sank on Monday after the steepest decline in Chinese stocks in eight years raised concerns about growth and it's trading implications. Bobbi Rebell reports.
The steep stock slide in China sparked a global sell-off, sending the major U.S. indices down for a fifth straight session. And European stocks dropped to a two-week low. Nothing seemed to stop the selling, not the June rebound in U.S. business sentiment, not a vow by Chinese regulators to boost stock purchases, not even a mega-merger. Alibaba, JD.com, and Baidu were among the Chinese companies trading in the U.S. that lost ground. As for that mega drug deal, Teva is buying Allergan's generics business for $40.5 billion. Allergan's was the biggest gainer on the S&P 500. Reuters' correspondent Caroline Humer sees Allergan's CEO doing more deals. SOUNDBITE: CAROLINE HUMER, CORRESPONDENT, REUTERS (ENGLISH) SAYING: "Now, he says, he has $36 billion that he'll net from this deal. And he's looking to go out and to buy more companies." As a result of this deal, Teva withdrew its hostile bid for Mylan, causing those shares to fall. Fiat Chrysler shares skidded after the U.S. slapped a record $105 million fine over recall lapses involving millions of vehicles. GrubHub investors must be grumpy. Cowen downgraded their shares to "market perform" from "outperform," saying, an onslaught of new entrants will erode the food delivery company's first mover advantage.