Stocks opened higher, thanks in part to shares of Apple (AAPL), which received another boost from Warren Buffet, and Exxon (XOM), which was the subject of positive comments in Barron’s over the weekend and is benefiting from the strength in the oil market. After finding a level about an hour into trading, the averages have gone into drift mode with the S&P up about 0.5% and the Nasdaq and Dow seeing fractionally better performances near midday. ECONOMIC EVENTS: In the U.S., a report on consumer credit growth in March will be reported at 3:00 pm ET. Additionally, a barrel of West Texas Intermediate for June delivery rose above $70 for the first time since November 2014 as traders brace for the possible re-imposition of sanctions on Iran and Saudi Arabia reportedly aspires to see the price rise back above $80. COMPANY NEWS: Shares of athenahealth (ATHN) jumped 16% after activist investor Elliott Management, which owns roughly 9% of its outstanding common stock, offered to acquire the company for $160 per share in cash, or possibly more pending additional, private diligence… Starbucks (SBUX) announced it will form a global coffee alliance with Nestle (NSRGY), via which Nestle will obtain the rights to market, sell, and distribute Starbucks, Seattle’s Best and Teavana packaged coffee and tea in all global at-home and away-from-home channels. Nestle will pay Starbucks $7.15B in closing consideration as part of the pact, with Starbucks noting that it intends to use the after-tax proceeds from the up-front payment primarily to accelerate share buybacks. MAJOR MOVERS: Among the noteworthy gainers was Gramercy Property Trust (GPT), which surged 16% after it agreed to be acquired by Blackstone (BX) for $27.50 per share. Also higher were National CineMedia (NCMI) and Gannett (GCI), which gained a respective 16% and 9%, respectively, after reporting quarterly results. Among the notable losers was Dentsply Sirona (XRAY), which slid 7% after it cited headwinds in its U.S. business for its lowered outlook. Also lower was TowerJazz (TSEM), which fell 9% after it reported quarterly results. INDEXES: Near midday, the Dow was up 179.66, or 0.74%, to 24,442.17, the Nasdaq was up 70.45, or 0.98%, to 7,280.07, and the S&P 500 was up 15.30, or 0.57%, to 2,678.72.
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