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DJIA today, July 28, 2014: The Dow Jones posted a 123-point loss on Friday, while other U.S. markets also finished in the red on poor earnings outlooks and news that the economy may not have recovered as much as expected in the second quarter.
Shipments of capital goods slipped by 1% in June, marking the third consecutive month of declining volumes. Meanwhile, gold prices bounced back from a five-week low, recovering to finish above $1,300 an ounce. All eyes will be on the initial release of second-quarter GDP on Wednesday.
Here's what you should know to make your Monday profitable:
- Discount Merger: Discount retailer Dollar Tree Inc. (Nasdaq: DLTR) announced it will purchase its larger rival Family Dollar Stores Inc. (NYSE: FDO) for $74.50 a share in cash and stock worth $8.5 billion. Shares of Family Dollar Stores soared more than 24% in premarket hours, while Dollar Tree shares jumped more than 10%. Activist investor Carl Icahn will likely have made nearly $149 million in two months on his investment in Family Dollar Stores.
- Airline Launch: Virgin America, the airline partially owned by British entrepreneur Sir Richard Branson, announced it will launch a U.S.-based initial public offering later this year. The company, which announced its first profit since its 2007 launch, will aim to raise $115 million.
- Big Changes: The Commodity Futures Trading Commission has charged Lloyds Banking Group (NYSE: LYG) for rigging the London Interbank Offered Rate (LIBOR) and announced that the bank is working out a settlement. Details are emerging this morning and Money Morning will be covering the story in more detail this afternoon.
- Crazy Chicken: Shares of El Pollo LoCo Holdings Inc. (Nasdaq: LOCO) continued to surge in premarket hours. The restaurant chain, which began public trading on Friday, was up nearly 5% this morning and continues to be one of the most active stocks this morning.
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.