Stock Market Wrapup June 18th
After a seesaw day, the Dow, S&P 500 and Nasdaq all closed down, but not by much. Oil prices rose again on threats of a labor strike by Nigerian workers. Futures ended the day up 1.6% to $69.09, above Friday's close of $68.00. The National Association of Home Builders (NAHB) released its builders' housing market index for June with a score of 28, the lowest since February 1991. The index, which tracks builders' outlooks for the housing market, is down from 42 one year ago. The chief economist for the NAHB said that the organization expects home prices to be a drag on the economy for the rest of 2007. This announcement comes a day ahead of the U.S. government releasing its new housing starts and building permits statistics for May.
Fast-food restaurant Wendy's (NYSE: WEN - News) is reportedly putting itself on the market after cutting its full-year earnings guidance. While there is no timetable for the sale, a special committee of the board of directors is overseeing the process after making the initial recommendation. The earnings forecast is now $295-$315 million, or $1.09-$1.32 per share. Analysts put the EPS at $1.27. While the company struggles with a shrinking market share, it announced same-store sales growth of 3.8% in the first quarter and 0.7% thus far in the second quarter through June 15th.
Australian-based mining company BHP Billiton (NYSE: BHP) is apparently in a buying mood. One source said the company is exploring options regarding a potential $40 billion takeover of Pittsburgh-based Alcoa (NYSE: AA), while Reuters said late in the day that it was looking to buy Alcan (NYSE: AL). Alcoa was recently in the news for its failed bid to take over Alcan. Alcoa was up 0.7% on the day, Alcan rose 0.9%, and BHP saw an increase of 1.3%.
General Electric (NYSE: GE) is reportedly working with Financial Times publisher Pearson Plc (NYSE: PSO) to structure a bid for Dow Jones (NYSE: DJ). The two companies plan to combine The Wall Street Journal with its current offerings of CNBC and The Financial Times. The Bancroft family, owners of the company, are currently developing a proposal to submit to original suitor News Corp. (NYSE: NWS) that would maintain the company's editorial independence.
Friendly Ice Cream (Amex: FRN) has agreed to be taken private by private equity firm Sun Capital Partners. Sun Capital Partners will acquire the ice cream parlor and casual restaurant chain for $15.50 per share, or $337.2 million. The stock has been criticized in recent months by shareholders, including a letter sent in March by activist investors. The day after the letter was sent, the company announced that it would seek to be acquired.
Finish Line Inc. (Nasdaq: FINL), a sports-clothing retailer, announced today that it would pay $1.5 billion in cash to acquire Genesco, Inc. (NYSE: GCO). Genesco recently rejected an offer from Foot Locker (NYSE: FL) to be acquired saying that the offer was too low. Finish Line Inc. says that the combined operations would have sales of about $2.8 billion from 2,870 stores in the United States, Canada, and Puerto Rico.
By the BullMarket.com Staff
Fast-food restaurant Wendy's (NYSE: WEN - News) is reportedly putting itself on the market after cutting its full-year earnings guidance. While there is no timetable for the sale, a special committee of the board of directors is overseeing the process after making the initial recommendation. The earnings forecast is now $295-$315 million, or $1.09-$1.32 per share. Analysts put the EPS at $1.27. While the company struggles with a shrinking market share, it announced same-store sales growth of 3.8% in the first quarter and 0.7% thus far in the second quarter through June 15th.
Australian-based mining company BHP Billiton (NYSE: BHP) is apparently in a buying mood. One source said the company is exploring options regarding a potential $40 billion takeover of Pittsburgh-based Alcoa (NYSE: AA), while Reuters said late in the day that it was looking to buy Alcan (NYSE: AL). Alcoa was recently in the news for its failed bid to take over Alcan. Alcoa was up 0.7% on the day, Alcan rose 0.9%, and BHP saw an increase of 1.3%.
General Electric (NYSE: GE) is reportedly working with Financial Times publisher Pearson Plc (NYSE: PSO) to structure a bid for Dow Jones (NYSE: DJ). The two companies plan to combine The Wall Street Journal with its current offerings of CNBC and The Financial Times. The Bancroft family, owners of the company, are currently developing a proposal to submit to original suitor News Corp. (NYSE: NWS) that would maintain the company's editorial independence.
Friendly Ice Cream (Amex: FRN) has agreed to be taken private by private equity firm Sun Capital Partners. Sun Capital Partners will acquire the ice cream parlor and casual restaurant chain for $15.50 per share, or $337.2 million. The stock has been criticized in recent months by shareholders, including a letter sent in March by activist investors. The day after the letter was sent, the company announced that it would seek to be acquired.
Finish Line Inc. (Nasdaq: FINL), a sports-clothing retailer, announced today that it would pay $1.5 billion in cash to acquire Genesco, Inc. (NYSE: GCO). Genesco recently rejected an offer from Foot Locker (NYSE: FL) to be acquired saying that the offer was too low. Finish Line Inc. says that the combined operations would have sales of about $2.8 billion from 2,870 stores in the United States, Canada, and Puerto Rico.
By the BullMarket.com Staff
posted by Stock Administrator @ 7:58 PM
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