Apple’s Allusion, Citigroup’s Settlement, and a Merger: Morning Buzzers
Stock futures declined on Wednesday morning following a pessimistic economic outlook report from the OECD. The organization lowered its 2013 and 2014 global GDP growth forecasts from 3.4 to 3.1 and 4.2 to 4.0 percent, respectively.
U.S. futures at 8:45 a.m.: DJIA: -0.46%, S&P 500: -0.51%, NASDAQ: -0.37%.
Here’s what’s buzzing on Wednesday morning
Smithfield Foods (NYSE:SFD) announced on Wednesday that it has agreed to merge with Shuanghui International Holdings in a deal that values the meat products company at approximately $7.1 billion. The merger will include the assumption of Smithfield Foods’ debt. Shareholders will receive $34.00 per share, a premium of approximately 31 percent over the stock’s closing price on May 28.
Michael Kors Holdings (NYSE:KORS) climbed as much as 3 percent in pre-market trading after reporting fourth-quarter and fiscal-2013 financial results. The luxury designer and retailer reported that fourth-quarter revenues increased 57.1 percent on the year to $597.2 million, while comparable-store sales increased 36.7 percent. Reported earnings increased 123.9 percent to $0.50 per share. Gross profit margin increased from 57.7 percent in the year-ago period to 59.7 percent. First-quarter earnings are expected to be in a range between $0.46 and $0.48 per share.
Wal-Mart Stores (NYSE:WMT) stock was off fractionally in pre-market trading following reports that the discount retailer pleaded guilty to improperly dumping hazardous waste in California and Missouri. The company was charged with six counts of violating the Clean Water Act in California and violated federal pesticide disposal laws in Missouri, and will pay nearly $82 million in fines.
Citigroup (NYSE:C) was off about 1 percent in pre-market trading. The bank has reportedly settled with the Federal Housing Finance Agency, which accused it of misleading Fannie Mae and Freddie Mac into purchasing $3.5 billion in mortgage-backed securities. The agency hasn’t revealed the size of the fine, but a spokesman said the settlement was “satisfactory.”
Apple (NASDAQ:AAPL) was off fractionally in pre-market trading. CEO Tim Cook alluded to the company’s product pipeline at the All Things Digital tech conference on Tuesday, revitalizing a modicum of speculation about what the company has in the works.
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