Kroger Expands Atlantic Reach: Tuesday’s IP Market Recap

by Marc Bastow | July 9, 2013 4:53 pm

Kroger Expands Atlantic Reach: Tuesday’s IP Market Recap

IPMarketRecap Kroger Expands Atlantic Reach: Tuesdays IP Market Recap[1]Alcoa‘s (AA[2]) ceremonial kickoff to earnings season was a positive one, with its edging of expectations helping to start fan the market’s flames Tuesday.

All three major indices moved higher for a fourth straight day. The S&P 500 was tops, up 0.72% to close at 1652.32. The Nasdaq moved up 0.56% to finish at 3504.26, while the Dow Jones Industrial Average close 0.50% higher at 15300.34.

The big M&A news of the day came from the supermarket sector, where Kroger (KR[3]) proposed a $2.4 billion ($49.38 per share) acquisition[4] of Harris Teeter Supermarkets (HTSI[5]). KR’s offer represents a 33.7% premium over HTSI’s Monday closing price. KR shares rose more than 2%.

FedEx (FDX[6]) got a 4% push amid rumors that Bill Ackman’s Pershing Square Capital was considering a stake in the deliver services company.

Bookseller Barnes & Noble (BKS[7]) saw its shares rise more than 5% on news that CEO William Lynch resigned effective immediately, taking the fall[8] for disappointing sales of BKS’s Nook tablet. Founder and Chairman Leonard Riggio indicated that more changes are on the way.

Sirius XM Radio (SIRI[9]) moved ahead more than 3% after it raised its estimates for full-year net subscriber growth[10] to by 1.5 million thanks to strength in the auto industry, and said it reached the 25 million subscriber level.

Tesla Motors (TSLA[11]) extended its 260%-plus YTD run as it gets set to move[12] into the Nasdaq-100 on Monday, replacing Oracle (ORCL[13]), which is moving to the New York Stock Exchange.

Lastly, shares of IBM (IBM[14]) fell nearly 3% — the biggest loss on the Dow — after the stock was downgraded from “buy” to “neutral” by Goldman Sachs, which lowered its price target from $220 to $200. The move follows a separate downgrade from Barclays, which lowered the stock to “overweight.”

Three Up

Three Down

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

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/11/IPMarketRecap.gif
  2. AA: http://studio-5.financialcontent.com/investplace/quote?Symbol=AA
  3. KR: http://studio-5.financialcontent.com/investplace/quote?Symbol=KR
  4. $2.4 billion ($49.38 per share) acquisition: http://investorplace.com/2013/07/kroger-to-buy-harris-teeter-for-2-5b/
  5. HTSI: http://studio-5.financialcontent.com/investplace/quote?Symbol=HTSI
  6. FDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=FDX
  7. BKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKS
  8. taking the fall: http://slant.investorplace.com/2013/07/barnes-and-noble-nook-tablet-doome/
  9. SIRI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SIRI
  10. raised its estimates for full-year net subscriber growth: http://investorplace.com/2013/07/sirius-hits-25m-subscribers-raises-outlook/
  11. TSLA: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSLA
  12. gets set to move: http://investorplace.com/2013/07/tesla-roars-into-nasdaq-100-on-monday/
  13. ORCL: http://studio-5.financialcontent.com/investplace/quote?Symbol=ORCL
  14. IBM: http://studio-5.financialcontent.com/investplace/quote?Symbol=IBM
  15. FSL: http://studio-5.financialcontent.com/investplace/quote?Symbol=FSL
  16. HMA: http://studio-5.financialcontent.com/investplace/quote?Symbol=HMA
  17. ALK: http://studio-5.financialcontent.com/investplace/quote?Symbol=ALK
  18. ISRG: http://studio-5.financialcontent.com/investplace/quote?Symbol=ISRG
  19. JKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=JKS
  20. MU: http://studio-5.financialcontent.com/investplace/quote?Symbol=MU

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