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Stock market today, June 9, 2014: The Dow Jones is set to kick off the week after reaching a record high on Friday along with the S&P 500. A positive jobs report and increased support from the European Central Bank factored into the climb.
Here's what you should know to make your Monday profitable:
- The Big Split: This morning, Apple Inc. (Nasdaq: AAPL) will adjust the pricing of its shares when it begins trading. AAPL will engage a seven-for-one stock split. A Friday closing price of $645.57 should now reflect a price of roughly $92 per share. This is the first time that Apple stock has been available for under $100 since early 2009.
- Healthcare M&A Heating Up: In the latest pharma megadeal, Merck & Co. Inc. (NYSE: MRK) announced it would purchase Idenix Pharmaceuticals Inc. (Nasdaq: IDIX) for $24.50 per share, up from the company's Friday closing price of just under $7 per share. The deal values Idenix at approximately $3.85 billion and was approved by both companies' board of directors.
- Discount Dollars: Activist investor Carl Icahn announced he purchased a 9.4% stake in Family Dollar Stores Inc. (NYSE: FDO). Shares of the company rose by nearly 10% in after-hours trading on Friday. Icahn, who spent $265.8 million on the stake, said that he will seek changes in the discount retailer's management and strategy. Shares of Family Dollar surged more than 12% in premarket hours this morning.
- Winner Winner: After two weeks of bidding, Tyson Foods Inc. (NYSE: TSN) emerged as the winner in the Hillshire Brands (NYSE: HSH) stakes. The New York Times reports that Tyson will pay $63 per share, setting Hillshire's valuation at $7.7 billion. Tyson outbid Pilgrim's Pride Corp. (NYSE: PPC) in its pursuit of the company. In addition, the Tyson deal will effectively end Hillshire's deal to purchase Pinnacle Foods (NYSE: PF). Due to the new deal, Pinnacle will receive a $163 million breakup fee.
- Closed on Monday: In observation of Whit Monday, multiple European exchanges will be closed today. There will be no trading in Austria, Switzerland, Denmark, Greece, Iceland, Norway, Cyprus, Hungary, or Ukraine.
Keep reading for some shocking real estate news out of China, today's economic calendar, the top earnings reports on deck, and more...
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.