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What you need to know on Wall Street today

Olivia Oran   

What you need to know on Wall Street today

Welcome to Finance Insider, Business Insider's summary of the top stories of the past 24 hours. Sign up here to get the best of Business Insider delivered direct to your inbox.

Hedge funds just suffered through their worst month in 8 years - here's why their struggles could just be getting started

The stock market's so-called Red October was a tough time for investors of all shapes and sizes. But few parties felt the pain like hedge funds, which turned in a rocky month for the ages.

A large universe tracked by Hedge Fund Research lost almost 3% in October, its worst month since May 2010, when the eurozone debt crisis was the major issue facing markets.

But it was the turmoil that raged under the surface of that massive hedge fund universe last month that should have investors worried. While the market's previous period of turbulence in February was largely driven by technical factors, a study from JPMorgan suggests Red October was far more based on fundamentals.

Tech stocks are getting slammed, Dow drops nearly 500 points

Stocks fell for a third straight day Monday, with technology leading the way lower amid worries about waning iPhone demand.

The Nasdaq Composite fell 2.3%, while the S&P 500 lost 1.4% and the Dow Jones Industrial Average was lower by 1.9%. The Dow was down almost 500 points.

Apple sank 4.5% Monday after the facial-recognition supplier Lumentum cut its outlook, prompting worries of slowing demand for the iPhone.

Athenahealth just struck a $5.7 billion deal to end an 18-month battle with activist investor Paul Singer

The Athenahealth saga is coming to a close.

On Monday, the healthcare company reached a $5.7 billion agreement with Veritas Capital and Elliott Management to be acquired.

The deal, which values Athenahealth at $135 a share, follows months of pressure from Elliott to strike a deal and go private. Athenahealth provides technology used by doctors and hospitals.

Good news, Wall Streeters: You're probably going to get a bigger bonus this year

Wall Street professionals in almost all sectors are likely to receive bigger bonuses for the second year in a row, according to compensation consultant Johnson Associates.

The firm published its latest projections for Wall Street compensation on Monday. Incentive payouts are expected to be up across sectors this year, and Wall Street workers on average may see their year-end incentive payouts - including cash bonuses and equity awards - increase 5-10%, the report said.

Bonuses for investment banking underwriters and private equity professionals are projected to be 5-10% higher than last year, while equities traders could see an even bigger jump, as much as 20% from last year.

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