Apple Soars, Markets Snore — Monday’s IP Market Recap

by Marc Bastow | August 27, 2012 4:50 pm

Apple Soars, Markets Snore — Monday’s IP Market Recap

IPMarketRecap Apple Soars, Markets Snore    Mondays IP Market Recap[1]With Fed Chairman Ben Bernanke set to give a speech in Jackson Hole, Wyo., later this week, and Labor Day just a week away, Monday’s sluggish results were a good reflection of the standoffish market.

In very light trading, the Dow Jones fell 0.25% to 13,124, the S&P 500 fell fractionally to 1,410, and the Nasdaq rallied 0.11% to finish up at 3,073.

But not every investor was sitting around waiting for something to happen …

Apple (NASDAQ:AAPL[2]) won a patent lawsuit againstĀ  Samsung on late Friday, with a California jury finding that Samsung had infringed upon six Apple patents — and recommended an award of more than $1 billion in damages[3]. On Monday, the news lifted Apple stock to yet another historic high[4] as it briefly touched $680 per share before settling in for a nearly 2% gain to $675 per share.

AOL (NYSE:AOL[5]) announced it would pay out a $5.15 (15%) special dividend and upped a share repurchase program to $600 million as the company continues to rebate money[6] obtained in a $1.1 billion patent sale to Microsoft (NASDAQ:MSFT[7]). Shares of AOL climbed more than 3% on the news.

Best Buy (NYSE:BBY[8]) founder and former CEO Richard Schulze was given permission to look at the company’s books and assemble his partners and financiers for a formal bid during the next 60 days. Share rose over 4% on the day to just over $18 per share — still well below the $24-$26 range Schulze suggested in his opening foray in July.

IBM (NYSE:IBM[9]) announced it will purchase[10] employee management software maker Kenexa (NYSE:KNXA[11]) for about $1.26 billion, or $46 per share — a 40% premium — to enhance its social business and human resources business services team. IBM slipped marginally on the news.

Also getting into the M&A game, auto rental giant Hertz Global (NYSE:HTZ[12]) said Sunday it was buying[13] rival Dollar Thrifty (NYSE:DTG[14]) in a deal valued at $2.3 billion. Hertz will pay $87.50 per share in cash — roughly 8% better than Friday’s closing price for DTG — through a tender offer for Dollar Thrifty stock. Shares of Hertz finished up 8% Monday.

Finally, luxury retailer Tiffany (NYSE:TIF[15]) rose more than 7% after announcing second-quarter earnings and revenues[16] that beat last year’s results, though they fell short of analyst expectation.

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long AAPL, MSFT and AOL.

Endnotes:
  1. [Image]: http://investorplace.com/2012/08/thursdays-ip-market-recap-aapl-intc-hpq-dell-ges-aapl/
  2. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  3. recommended an award of more than $1 billion in damages: http://investorplace.com/2012/08/apple-wins-1b-jury-verdict-over-samsung-patent-charges/
  4. historic high: http://investorplace.com/2012/08/apple-bests-13-years-of-market-cap-leaders-aapl-msft-ge-xom-intc-wmt-csco/
  5. AOL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AOL
  6. continues to rebate money: http://investorplace.com/2012/08/is-aol-sweet-dividend-tempting-enough-msft-yhoo/
  7. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  8. BBY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBY
  9. IBM: http://studio-5.financialcontent.com/investplace/quote?Symbol=IBM
  10. it will purchase:
  11. KNXA: http://studio-5.financialcontent.com/investplace/quote?Symbol=KNXA
  12. HTZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HTZ
  13. was buying: http://investorplace.com/2012/08/hertz-hits-the-gas-with-dollar-thrifty-buy/
  14. DTG: http://studio-5.financialcontent.com/investplace/quote?Symbol=DTG
  15. TIF: http://studio-5.financialcontent.com/investplace/quote?Symbol=TIF
  16. second-quarter earnings and revenues: http://investorplace.com/2012/08/tiffany-misses-forecasts-cuts-outlook-shares-rise/
  17. NOK: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOK
  18. read more here: http://investorplace.com/2012/08/beware-nokia-rapid-rally-nok-apple-samsung-patent/
  19. MTB: http://studio-5.financialcontent.com/investplace/quote?Symbol=MTB
  20. read more here: http://investorplace.com/2012/08/mt-bank-to-buy-hudson-city-bancorp-for-3-7b/
  21. NILE: http://studio-5.financialcontent.com/investplace/quote?Symbol=NILE
  22. ANGI: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANGI
  23. ZNGA: http://studio-5.financialcontent.com/investplace/quote?Symbol=ZNGA
  24. KYAK: http://studio-5.financialcontent.com/investplace/quote?Symbol=KAYAK

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