Shares of DuPont surged overnight, helping to offset partially overall negative sentiment, after a Wall Street Journal report that the company was in advanced merger talks with Dow Chemical.
In 12.15pm trading in New York, the Dow Jones Industrial Average inched 0.02 percent lower. In 12.00pm trading, the Standard & Poor's 500 Index fell 0.3 percent, while the Nasdaq Composite Index dropped 1 percent.
In the Dow, slides in shares of Apple and those of Nike, last trading 1.5 percent and 1.4 percent lower respectively, were checked by a rally in shares of DuPont, last up 12.2 percent. Shares of Dow Chemical last traded 10.5 percent higher.
The chemical juggernauts could announce a merger in the coming days, the Wall Street Journal reported, citing people familiar with the matter. Dow's Chief Executive Andrew Liveris is expected to be executive chairman of the new company, with DuPont CEO Edward Breen keeping that title.
DuPont and Dow Chemical each have a market capitalisation of about US$60 billion. After the merger, the Journal said, the combined company would split into three businesses-agriculture, specialty chemicals and commodity chemicals.