Premarkets: 4 things to know before the open – Aug. 22, 2014
On Thursday, Family Dollar (FDO) rejected Dollar General’s (DG) acquisition bid, as Family Dollar’s board doubts that the deal is “reasonably likely to be completed on the terms proposed” because of potential regulatory risks. As a part of its bid, Dollar General committed to divesting up to 700 retail stores, representing the same percentage (approximately 5% of total stores) that would be divested (500 stores) if Dollar Tree (DLTR) wins the bid; however, we note that if Dollar General were to acquire Family Dollar, its combined unit count would represent about 65% of the total among all three banners, versus a roughly 50% split between Dollar General and a combined Dollar Tree/Family Dollar, so it’s possible that these concerns are valid. At midday, Family Dollar and Dollar General were each down 0.4% while Dollar Tree fell 1.4%. Hewlett-Packard’s (HPQ) fiscal third-quarter revenue was slightly ahead of our expectations and adjusted EPS was generally in line as the firm placed another notch in its operational turnaround story.
The S&P 500 increased 0.3% to close at a record high, just above 1,992. The Nasdaq and Dow Jones Industrial Average also ended a touch higher. Related: Fear & Greed Index 2. Rosneft shares were lower by about 2% in Russia after The Financial Times stocks to buy today reported a $2 billion deal with oil trader Vitol has been shelved. The energy giant, which has seen shares fall by 9% since the start of the year, is facing Western sanctions that limit its financing options.
Stocks Little Changed After Yellen – Yahoo Finance
Stocks on the Move Dynegy (DYN) announced plans to acquire 6.1 GW of coal and gas generation from Duke Energy (DUK) for $2.8 billion. Additionally, Dynegy will acquire 6.3 GW of coal and gas generation from Energy Capital Partners (ECP) for $3.45 billion. The estimated total present value of net operating losses is estimated at $480 million. The transformative acquisition for Dynegy nearly doubles the companys generation capacity, adding 9.0 GW in PJM and 3.4 GW in New England.
Stocks Continue To Show A Lack Of Direction In Mid-Day Trading – U.S. Commentary
Among individual stocks, shares of Aeropostale (ARO) have fallen sharply on the day after the teen apparel retailer forecast a wider than expected third quarter loss. Tax preparation software developer Intuit (INTU) has also come under pressure after reporting a wider fourth quarter net loss and providing disappointing guidance. On the other hand, shares of Salesforce.com (CRM) have jumped higher after the provider of customer relationship management software reported better than expected second quarter results and raised its full-year guidance Apparel retailer Gap (GPS) is also moving to the upside after reporting second quarter results that beat analyst estimates and raising its full-year earnings outlook. Sector News Most of the major sectors continue to show only modest moves in mid-day trading, contributing to the lack of direction being shown by the broader markets.
Stocks Little Changed on Ukraine, Yellen Speech – ABC News
Investors were also monitoring another flare-up in tensions between Ukraine and Russia. The Dow Jones industrial average lost 25 points, or 0.2 percent, to 17,014 as of noon Eastern time Friday. The Standard & Poor’s 500 index fell three points, or 0.1 percent, to 1,990. The Nasdaq composite index rose six points, or 0.1 percent, to 4,538.