Stock Market Wrapup July 16th
The major market averages were mixed today, with the Dow Jones once again setting a new all-time closing high. The S&P and Nasdaq, meanwhile, traded lower. Oil remained high on investor minds as the price of crude traded above $74 a barrel. Investors are awaiting a bevy of earnings reports from some big names later this week.
On the economic front, the Federal Reserve Bank of NY said its general economic index rose to 26.5 from 25.8 the prior month. Any reading above zero marks expansion.
On the M&A front, IHOP (NYSE: IHP - News) agreed to buy casual-dining chain Applebee's International (Nasdaq: APPB - News) for $25.50 a share, or $2.1 billion. The deal is unique given IHOP's smaller market cap. It plans to finance the deal by franchising the vast majority of Applebee's 508 company restaurants. The deal includes a modest 4.6% premium to Applebee's closing price on Friday.
On the earnings front, shares of toy maker Mattel (NYSE: MAT - News) rose 2.5% on the session after the company reported net income of $43.1 million, or 11 cents a share. Revenue rose 7% to $1.02 billion on increased international sales. Burger giant McDonald's (NYSE: MCD - News) reported this morning that same-store sales in restaurants opened at least 13 months rose 7.4% in the second quarter and 8.4% in June. The quarterly rise was the biggest in three years. The world's largest restaurant chain now expects to post earnings of 71 cents a share excluding items, compared to analyst estimates of 68 cents a share. Shares of McDonald's rose 0.4%. Subscribers can read our analysis of McDonald's in today's issue.
In other news, shareholders of Lear (NYSE: LEA - News) rejected plans for a $2.9 billion buyout led by billionaire Carl Icahn. Earlier this month, Icahn's American Real Estate Partners (NYSE: ACP - News) raised its bid to $37.25 a share, but shareholders felt the offer was inadequate. Icahn who already owns 24% of Lear will be granted a termination fee totaling $25 million in cash and stock.
By the BullMarket.com Staff
On the economic front, the Federal Reserve Bank of NY said its general economic index rose to 26.5 from 25.8 the prior month. Any reading above zero marks expansion.
On the M&A front, IHOP (NYSE: IHP - News) agreed to buy casual-dining chain Applebee's International (Nasdaq: APPB - News) for $25.50 a share, or $2.1 billion. The deal is unique given IHOP's smaller market cap. It plans to finance the deal by franchising the vast majority of Applebee's 508 company restaurants. The deal includes a modest 4.6% premium to Applebee's closing price on Friday.
On the earnings front, shares of toy maker Mattel (NYSE: MAT - News) rose 2.5% on the session after the company reported net income of $43.1 million, or 11 cents a share. Revenue rose 7% to $1.02 billion on increased international sales. Burger giant McDonald's (NYSE: MCD - News) reported this morning that same-store sales in restaurants opened at least 13 months rose 7.4% in the second quarter and 8.4% in June. The quarterly rise was the biggest in three years. The world's largest restaurant chain now expects to post earnings of 71 cents a share excluding items, compared to analyst estimates of 68 cents a share. Shares of McDonald's rose 0.4%. Subscribers can read our analysis of McDonald's in today's issue.
In other news, shareholders of Lear (NYSE: LEA - News) rejected plans for a $2.9 billion buyout led by billionaire Carl Icahn. Earlier this month, Icahn's American Real Estate Partners (NYSE: ACP - News) raised its bid to $37.25 a share, but shareholders felt the offer was inadequate. Icahn who already owns 24% of Lear will be granted a termination fee totaling $25 million in cash and stock.
By the BullMarket.com Staff
posted by Stock Administrator @ 5:58 PM
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