On Monday, Dollar General (NYSE:
) foiled Dollar Tree's (NASDAQ:
) plans to acquire Family Dollar (NYSE:
) by entering its own bid for the second-largest dollar-store
Dollar General, the largest of the three, has offered $9 billion
in cash for its rival, saying the deal would help the company
better cope with the market's slow traffic and over saturation.
Family Dollar has agreed to review the offer, which has many
expecting to see bids escalate in the coming days.
In other news around the markets:
With the help of U.S. air support, Iraqi and Kurdish forces were
able to drive Islamist militants away from the nation's Mosul Dam,
a major turning point in the battle to retake the northern part of
the country. U.S. President Barack Obama has said he will continue
to support Iraqi forces through targeted air strikes in the coming
months as long as Iraqi and Kurdish forces continue to work
together. The reputation of Heinz food products suffered a major
blow on Monday after the company recalled four batches of infant
cereal when it was found to have excessive lead content. The recall
will likely hurt the company's sales as recalls in children's foods
tend to linger on parents' minds. Although Israel and Hamas were
able to agree on a last-minute 24-hour extension to the ceasefire
in Gaza early on Tuesday, the two sides have made little progress
toward a lasting peace agreement. The two are unable to agree to
each other's demands, making a truce in such a short time very
unlikely. Officials working to broker the agreement in Cairo have
said that if no agreement is reached, the violence in Gaza will
likely continue. Ukrainian nationalist forces continued their push
to retake Eastern Ukraine from pro-Russian separatists, but their
progress came at a steep price. A convoy of refugees was hit by
rocket fire on Monday as civilians attempted to flee the fighting.
Ukrainian officials have said the attack killed dozens of people
and blamed the rebels, but separatist leaders have denied
responsibility, and in some cases, that the attack even took place.
Asian markets were up across the board. The NIKKEI was up 0.83
percent, the Shanghai composite rose 0.26 percent, the KOSPI gained
0.88 percent, the Shenzhen composite rose 0.24 percent and the Hang
Seng index was up 0.86 percent.
European markets were also higher. The FTSE gained 0.44 percent,
the STOXX 600 was up 0.49 percent, the DAX rose 0.89 percent, the
CAC 40 gained 0.37 percent and the IBEX rose 0.31 percent.
Energy futures gained modestly after losing heavily on Monday.
Brent futures were up 0.26 percent, and WTI futures rose 0.50
percent. Gold was up 0.07 percent, but silver lost 0.05 percent.
Industrial metals were mostly higher; copper gained 0.29 percent,
aluminum rose 0.95 percent and zinc gained 0.44 percent.
Currency markets were relatively quiet. The euro lost 0.09
percent against the dollar and 0.07 percent against the yen, but
gained 0.01 percent against the pound. The dollar was up 0.03
percent against the yen and 0.16 percent against the pound, but
lost 0.10 percent against the Australian dollar.
Notable earnings released on Monday included:
Urban Outfitters (NASDAQ:
) reported second quarter EPS of $0.49 on revenue of $811.00
million, compared to last year's EPS of $0.51 on revenue of $758.52
million. Perfect World (NASDAQ:
) reported second quarter EPS of $0.52 on revenue of $149.60
million, compared to last year's EPS of $0.27 on revenue of $115.44
Stocks moving in the Premarket included:
) was up 0.95 percent in premarket trade after rising 1.39 percent
on Monday. Apple (NASDAQ:
) gained 0.44 percent in premarket trade after gaining 1.20 percent
on Monday. Verizon (NYSE:
) was up 0.23 percent in premarket trade after choppy trading took
the stock up 0.23 percent over the past week. Netflix (NASDAQ:
) was down 0.11 percent in premarket trade after gaining 1.51
percent on Monday.
Home Depot (NYSE:
) is expected to report second quarter EPS of $1.45 on revenue of
$23.61 billion, compared to last year's EPS of $1.24 on revenue of
$22.52 billion. TJX Companies (NYSE:
) is expected to report second quarter EPS of $0.73 on revenue of
$6.89 billion, compared to last year's EPS of $0.66 on revenue of
$6.44 billion. Medtronic (NYSE:
) is expected to report first quarter EPS of $0.92 on revenue of
$4.25 billion, compared to last year's EPS of $0.88 on revenue of
$4.08 billion. La-Z-Boy (NYSE:
) is expected to report first quarter EPS of $0.21 on revenue of
$322.80 million, compared to last year's EPS of $0.18 on revenue of
Tuesday's economic calendar will be relatively busy with the
U.S. set to release CPI, the Redbook, oil inventory data and
housing starts. From Europe, investors will be watching for British
PPI, British CPI and the eurozone's current account.
For a recap of Monday's market action, click .
Tune into Benzinga's pre-market info show with Nic Chahine, Vlad
Karpel & Cate Long
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