| 2017-11-20 16:23:38|
CAVM, MRVL… 16:23 11/20 11/20/17
On The Fly: Top stock stories for Monday
Stocks opened little changed, but by midday the Dow was up roughly 0.4% with the S&P and Nasdaq also above the flat line by just a couple of points. The major averages moved in a narrow range for most of the day and closed higher to kick off the holiday-shortened week with a positive start. Oil prices were lower from the outset and hovered near $56 a barrel in a sluggish trading day for the commodity. ECONOMIC EVENTS: In the U.S., the leading indicators index rose 1.2% in October to a reading of 130.4, versus expectations for it to have been up 0.8%. In central bank news, Federal Reserve chair Janet Yellen confirmed that she will not remain on the Fed board and will retire once Jay Powell has been sworn into his new position. In Europe, Germany's Free Democrats pulled out of coalition negotiations over the weekend, meaning Chancellor Angela Merkel could form a minority government or the country may hold new elections. COMPANY NEWS: Shares of Cavium (CAVM) advanced 11% after the company confirmed that it has agreed to be acquired by Marvell Technology Group (MRVL) in a cash and stock transaction valued at approximately $6B. After the combination, Cavium shareholders are expected to own approximately 25% of the combined company on a pro forma basis. Marvell noted that news leaked of a potential Cavium deal around the time when rumors were also swirling about Broadcom (AVGO) bidding to buy Qualcomm (QCOM), but said that its deal is "in no reaction to any other consolidation"... In other M&A news, Hain Celestial (HAIN) shares rose 3% after Bloomberg reported that Nestle (NSRGY) is looking into a bid for all or part of the company... Meanwhile, TransCanada (TRP) shares were 1% higher after the Nebraska Public Service Commission approved an order giving the company the go ahead to build the Keystone XL Pipeline, though via an alternative route. TransCanada confirmed the approval and added that it is evaluating the PSC's decision. MAJOR MOVERS: Among the notable gainers was Dycom (DY), which rose 9% after the company reported better than expected Q1 earnings and revenue. Also higher was Bloomin' Brands (BLMN), which jumped 12% after Jana Partners reported an 8.7% stake in the company and said that it plans to have discussions with the company's board and management regarding topics including a review of strategic alternatives, including exploring a sale. Among the noteworthy losers was Bioverativ (BIVV), which dropped 9.5% after Roche's (RHHBY) Genentech unit said a study evaluating Hemlibra in adults and adolescents with hemophilia A without inhibitors to factor VIII met its primary and key secondary endpoints. Also lower were shares of Cardinal Health (CAH), which slid over 4% after Morgan Stanley downgraded the stock to Underweight, citing potential earnings risk from Amazon's (AMZN) work to scale its medical supply distribution. INDEXES: The Dow rose 72.09, or 0.31%, to 23,430.33, the Nasdaq gained 7.92, or 0.12%, to 6,790.71, and the S&P 500 added 3.29, or 0.13%, to 2,582.14.
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