On The Fly: Top stock stories for Monday - InvestingChannel

On The Fly: Top stock stories for Monday

Stocks opened in positive territory and remained there throughout the day, but only after some late session turbulence prompted by a tweet from President Trump promising a decision on Iran tomorrow. ECONOMIC EVENTS: In the U.S., consumer credit grew $11.6B in March, versus the consensus view for an increase of $15.6B. Additionally, President Donald Trump stated on Twitter that he plans to announce his decision on the Iran nuclear deal tomorrow from the White House at 2:00 pm ET. COMPANY NEWS: Shares of athenahealth (ATHN) gained 16.4% to close at $146.75 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… Xerox (XRX) shares were in focus after Carl Icahn and Darwin Deason released an open letter to Xerox shareholders, saying they had “furthered” their commitment to “holding Xerox, its current board of directors and Fuji accountable for their egregious actions” by posting a $150M bond to preserve the two preliminary injunctions issued by the New York State Supreme Court. According to the letter, Icahn and Deason believe a $40 per share or more cash offer for Xerox “would require consideration”… Meanwhile, Walmart (WMT) said that it has introduced new policies, programs and tools aimed at reducing opioid misuse and abuse. As part of its new approach, Walmart, as well as its Sam’s Club subsidiary, will restrict initial acute opioid prescriptions to no more than a seven-day supply, with up to 50 morphine milligram equivalent maximum per day. MAJOR MOVERS: Among the noteworthy gainers was Gramercy Property Trust (GPT), which surged 15.5% to $27.50 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 15% and 12%, respectively, after reporting quarterly results. Among the notable losers was International Flavors (IFF), which fell about 11% after announcing an agreement to acquire flavors, savory solutions and natural ingredients company Frutarom in a cash and stock transaction valued at approximately $7.1B, including the assumption of net debt. Also lower was Dentsply Sirona (XRAY), which slid 6% after it cited headwinds in its U.S. business for its lowered outlook. INDEXES: The Dow rose 94.81, or 0.39%, to 24,357.32, the Nasdaq gained 55.60, or 0.77%, to 7,265.21, and the S&P 500 advanced 9.21, or 0.35%, to 2,672.63.