Stock market news today, June 26, 2014: U.S. markets today (Thursday) opened after finishing in the green across the board in the last trading session – despite GDP figures that revealed the worst non-recession performance in four decades.
Here are the top stock market news stories today:
- Merger Mania: Shares of metals producer Alcoa Inc. (NYSE: AA) rose 5.5% in premarket hours on news that the company would purchase Firth Rixson, a manufacturer of jet engine parts. The purchase is expected to increase the company's aerospace division by 20% and provide another shot of confidence to its diverse value-add lines. Initial reports suggest the deal will be valued at least $2.85 billion and will require a combination of cash and stock.
- Today's Economic Calendar: Today's schedule features jobless claims, the EIA natural gas report, and the Kansas City Fed Manufacturing Index.
- Another Day, Another Recall: The bad news keeps coming. Yesterday, General Motors Co. (NYSE: GM) announced a recall of 2013 and 2014 Chevrolet Cruze sedans due to concerns about a possible defect in air bags manufactured by its supplier Takata. Despite the news, the company's CEO announced no plans for future employee terminations over the recalls.
- Today's Launch: Wearable sports camera maker GoPro Inc. (Nasdaq: GPRO) sold 17.8 million shares in its initial public offering of stock at $24 each. The company said the IPO reached the higher end of its price range, and raised $427 million. The stock will begin trading on Nasdaq today.
- Good News for Housing: The nation's second largest homebuilder, Lennar Corp. (NYSE: LEN), reported strong quarterly profits thanks to higher home prices in the United States. Shares are up marginally in premarket hours. Lennar announced that a tightened housing supply fueled the company's average selling price by 14% during last quarter.
- Another Activist into the Pool: Reuters reports that hedge fund manager John Paulson has taken a stake of more than six million shares in Botox manufacturer Allergan Inc. (NYSE: AGN). Paulson is the latest high-profile hedge fund manager (the primary being Bill Ackman) to call for a merger between the company and Valeant Pharmaceuticals Intl. Inc. (NYSE: VRX).
Keep reading for the latest oil and gas news, earnings reports on deck today, and more…