Markets closed the day lower by a fraction on Monday. Stocks declined after four consecutive weeks of gains that inked a number of fresh record highs. A number of major corporate deals punctuated Monday’s headlines, and investors continued to debate if and when the Federal Reserve will taper stimulus spending.
|DJIA: -0.12% to 15,335.30||S&P 500: -0.07% to 1,666.29||NASDAQ: -0.07% to 3,496.43|
|Gold: +$29.00 to $1,392.70 per ounce||Oil: +$0.64 to $96.66 per barrel||U.S. 10-Year: +0.012 to 1.963%|
Americans Still Aren’t Jumping For Joy Over Economic Growth: Bankrate’s May 2013 Financial Security Index revealed Americans to be optimistic, but cautious, about the economy, which was reflected in a decision not to increase spending elsewhere in the face of falling gas prices. American consumers are more optimistic about their overall financial security than they were a year ago, but still did not spend money saved at the pump on vacations or dining out… (Read more.)
Is Ben Bernanke’s Bazooka Brigade Running Out of Ammo? The Federal Reserve will meet to debate policy on June 18 and 19 under the full scrutiny of U.S. market participants. Analysts and investors won’t receive the minutes from the meeting for three weeks — the standard lag time — but observers have a good idea about what the Federal Open Market Committee will be talking about: interest rates, inflation, the labor market, and whether or not to begin winding down QE4… (Read more.)
Will Obamacare Actually Make Workers Cheaper to Insure? Before the Patient Protection and Affordable Care Act was enacted into law, approximately 150 million Americans received health insurance through their jobs. Beginning next year, any business with 50 or more employees will pay a penalty for not offering coverage to its workers, and those not covered through their jobs will be required to purchase insurance as well… (Read more.)
Here’s your Cheat Sheet to today’s top stock stories:
Yahoo (NASDAQ:YHOO) stock closed the day up 0.23 percent on Monday. The company announced that it has entered into a definitive agreement to acquire Tumblr, and has issued a promise “not to screw it up.” The media network will operate independently and as a separate business, and CEO David Karp will remain CEO. Total consideration for the deal is approximately $1.1 billion, most of which will be paid in cash… (Read more.)
Actavis (NYSE:ACT) closed the day up 1.31 percent after announcing that it will buy Warner Chilcott (NASDAQ:WCRX) in a stock-for-stock transaction valued at approximately $8.5 billion. Actavis reports that if successfully completed, the transaction will create a leading global specialty pharmaceutical company with approximately $11 billion in combined annual revenue, and the third-largest U.S. specialty pharmaceutical company with approximately $3 billion in annual revenues focused on core therapeutic categories of Women’s Health, Gastroenterology, Urology, and Dermatology.” Chilcott closed the day up 2.03 percent.
Chesapeake Energy (NYSE:CHK) stock closed the day up 2.61 percent after announcing that Robert Lawler, Senior Vice President, International and Deepwater Operations at Anadarko Petroleum (NYSE:APC), will join the company as CEO and as a member of the board effective June 17.
General Electric (NYSE:GE) closed the day up 0.47 percent after GE Capital announced that it would return $6.5 billion in dividends to GE in 2013. In addition, GE Capital will pay out $4.5 billion in special dividends, returning about 30 percent of total 2013 earnings for the year.
Red Hat (NYSE:RHT) closed the day down 4.26 percent after analysts at BMO downgraded the stock from Outperform to Market Perform on concerns that growth expectations may be too high given forecasts for a softer computer server market than currently projected. BMO holds a $54 price target on the stock, just 2.6 percent above Monday’s closing price.
Campbell Soup Company (NYSE:CPB) closed the day down 3.88 percent after reporting earnings. Revenue rose 15 percent on the year to $2.09 billion, just beating the estimate for $2.04 billion. Adjusted earnings increased 10.7 percent on the year to $0.62 per share, beating the mean analyst estimate of $0.56 per share.
Dell (NASDAQ:DELL) reported first quarter results last Thursday, which showed just how deeply the shrinking personal computer market had hurt its business during the last three-month period. The PC manufacturer reported Thursday that profit dropped 79 percent from the year-ago quarter, and revenue dropped two percent to $14.1 billion, slightly above analysts’ expectations for $13.5 billion. But Carl Icahn, who has made an offer for the company with Dell’s largest shareholder Southeastern Asset Management, wants more information on the state of the PC maker’s business… (Read more.)
Websense (NASDAQ:WBSN) closed the day up 28.76 percent at $24.76 per share after announcing that private-equity firm Vista Equity Partners has agreed to buy the company for $24.75 per share in a cash deal valued at approximately $1 billion.
Pandora (NYSE:P) closed the day up 1.99 percent after receiving an upgrade from Barclays Capital. The firm upgraded shares to Equal Weight from Underweight and increased its price target from $10 to $17, about 3.8 percent above Monday’s closing price. The company will report earnings on Thursday.
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