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Wall Street Wants Office Supplies — Tuesday’s IP Market Recap

OfficeMax, Office Depot soar on a potential merger, and Staples comes along for the ride

   
Wall Street Wants Office Supplies — Tuesday’s IP Market Recap

IPMarketRecap Wall Street Wants Office Supplies    Tuesday's IP Market RecapU.S. markets kept up their momentum and moved broadly higher Tuesday despite some downbeat news on the housing front, as a continuation of last week’s merger news and a spate of positive corporate news had investors reaching for the phones or on their computers to fill buy orders.

Both the Dow Jones Industrial Average and the S&P 500 continue to reach towards their respective October 2007 highs, with the S&P 500 closing up 0.73% at 1,530.94, while the Dow settled in for gain of 0.39% at 14,035.67. The Nasdaq proved just as resilient, finishing up 0.68% to 3,213.60.

On the merger front, office supply retailers Office Depot (NYSE:ODP) and OfficeMax (NYSE:OMX) revealed they are in talks to join forces, and investors reacted by driving up shares in OMX by over 21% and ODP by nearly 10%. The merger news also bolstered competitor Staples (NASDAQ:SPLS) to the tune of roughly 13%.

Also on the brick-and-mortar front, Best Buy (NYSE:BBY) continued a recent surge, rising over 3% on the day after saying it make its price-matching program permanent. BBY is up more than 40% year-to-date.

Meanwhile, reports indicated that Google (NASDAQ:GOOG) is discussing opening up retail stores to sell some of its hardware offerings. The stock moved ahead nearly 2% to hit a new intraday high of $807 before settling in at an all-time high closing price of $806.85.

Not all was well on the day, however. Healthcare stocks were adversely impacted by the announcement of a reduction in the 2014 Medicare Advantage benchmark payment rates, with Humana (NYSE:HUM) crumbling more than 6% and United Healthcare (NYSE:UNH) and Aetna (NYSE:AET) declining nearly 1%.

Earnings notables for Wednesday include Sodastream (NASDAQ:SODA), Dish Network (NASDAQ:DISH) and Owens-Corning (NYSE:OC).

Three Up

  • Sunpower (NASDAQ:SPWR): Up 16.9% ($1.94) to $13.39.
  • Sealed Air (NYSE:SEE): Up 9% ($1.75) to $21.15.
  • Tesla Motors (NASDAQ:TSLA): Up 6.1% ($2.24) to $39.28.

Three Down

  • Hovnanian (NYSE:HOV): Down 4.3% (26 cents) to $5.76.
  • Genuine Parts (NYSE:GPC): Down 3.8% ($2.69) to $68.75.
  • Allegheny Technologies (NYSE:ATI): Down 3.5% ($1.17) to $32.64.

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2013/02/tuesdays-ip-market-recap-odp-omx-spls-goog-bby/.

©2014 InvestorPlace Media, LLC

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