Active broad-market exchange-traded funds at the close of
Friday's regular session:
SPDR S&P 500 (
iShares S&P 500 (
PowerShares QQQ (
iShares Russell 2000 (
iShares Russell 1000 Growth (
iShares MSCI Emerging Markets Index (EEM): +1.00%
United States Oil Fund (USO): +0.16%
SPDR Gold Shares (GLD): -0.04%
Select Financial Sector SPDRS (XLF): +0.66%
Broad Market Indicators
Broad-market exchange-traded funds, including SPY, IWM and IVV
were edging lower pre-market Monday. Actively traded PowerShares
) was down 0.01%.
U.S. stock futures edged lower in Monday's
, ahead of a trading session with little economic data on tap.
Merger and acquisition news was in the spotlight, with Tyson Foods'
(TSN) $8.55 billion bid for Hillshire Brands (HSH), and Merck's
(MRK) plan to acquire Idenix Pharmaceuticals (IDIX) for $3.85
billion. Investors are looking forward to two Federal Reserve
speakers - St. Louis Fed President James Bullard will speak at 9:10
am ET while Boston Fed President Eric Rosengren will be giving a
speech at 1:30 pm ET. Much of the week will also be thin on
economic data, but the government's report on May retail sales,
which will be released on Thursday, will be in focus.
Power Play: Consumer
Consumer Staples Select Sector SPDR (XLP), iShares Dow Jones US
Consumer Goods (IYK), and Vanguard Consumer Staples ETF (VDC) were
Among stocks, Tyson Foods (TSN) shares edged lower pre-bell
after as it said it has submitted a binding offer to buy Hillshire
Brands (HSH) for $8.55 billion in cash, sending the maker of food
products to an all-time high before the market open. TSN was down
2.47% while HSH climbed 5% to an all-time high.
The offer is subject to Hillshire Brands being released from its
existing agreement to buy Pinnacle Foods (PF). PF closed down 0.9%
on Friday and is trading in the upper half of the 52-week range
between $23.56 and $35.67. It was unchanged in recent pre-market
trade. The deal, which includes Hillshire's outstanding net debt,
represents a multiple of 16.7x trailing 12 months adjusted EBITDA
or 10.5x including $300 million in synergies. Tyson said it expects
that the proposed transaction to be marginally accretive to EPS on
a cash basis in the first full fiscal year after completion and
substantially accretive thereafter.
Winners and Losers
Technology Select Sector SPDR ETF (XLK), iShares Dow Jones US
Technology ETF (IYW) iShares S&P North American Technology ETF
(IGM) and iShares S&P North American Technology-Software Index
(IGV) were inactive. SPDR S&P International Technology Sector
ETF (IPK) was unchanged and reached a record high in the previous
Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and
Semiconductor Sector Index Fund (SOXX) were unchanged.
In corporate news, Analog Devices (ADI) inked a deal to buy
Hittite Microwave Corp. (HITT) for $78 per share cash, reflecting a
total enterprise value of $2 billion. The transaction is expected
to add to ADI's non-GAAP EPS. ADI also reaffirmed its Q3 outlook
for a revenue increase of 1% to 5% and EPS in the range of $0.60 to
$0.64 per share. The analyst consensus is $0.63 per share,
according to Capital IQ. ADI shares closed at $52.96; HITT shares
climbed 28% and are on track to reach a new 52-week high.
Select Financial Sector SPDRs (XLF) was flat. Direxion Daily
Financial Bull 3X shares (FAS) was up 0.11%. Its bearish
counterpart, FAZ, was down 0.11%.
Among sector news, AIG (AIG) has launched a service to sell auto
insurance directly to customers in Dubai. The AIG Auto Insurance is
sold through the global insurance company's licensed entity,
American Home Assurance Company, in the UAE and include products
such as compulsory auto insurance, collision and theft insurance,
and voluntary third-party liability insurance.
Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR
(XLE) were flat, but reached record highs in the previous
Among stocks, Ferrellgas Partners (FGP) reported earnings in the
quarter ended April 30 rose slightly to $44.9 million or $0.57 per
share from $44.2 million or $0.56 the year earlier, missing the
average $0.64 estimate from analysts polled by Capital IQ. Revenue
rose to $722.1 million from $603 million, short of the $749 million
consensus estimate. The company said it now expects fiscal 2014
adjusted ebitda between $285 million and $290 million, up from
previously $275 million to $285 million.
Crude was edging higher, up 0.81%; United States Oil Fund (USO)
was up 0.74%. Natural gas was down 0.36% and United States Natural
Gas Fund (UNG) was down 0.69%.
Gold was leaning higher, up 0.30%, and silver was up 0.86%.
Among rare metal funds, SPDR Gold Trust (GLD) was up 0.16% and
iShares Silver Trust (SLV) was up 0.55%.
Health Care SPDR (XLV) iShares Dow Jones US Healthcare (IYH) and
Vanguard Health Care ETF (VHT) are unchanged and all closed higher
on Friday. Biotech ETF iShares NASDAQ Biotechnology Index (IBB)
ended down and is inactive pre-market.
In corporate news, Merck (MRK) said it plans to buy Idenix
Pharmaceuticals (IDIX) in a $3.85 billion deal.
IDIX shares were up 235.68% , well past their 52-week high of
$9.32. MRK was down 0.61%.
Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.