U.S. markets were higher, but still on stand-by, awaiting word from the two-day Federal Open Market Committee (FOMC) meeting, which began today. Traders seem to have conflicted opinions as to whether a rate hike will boost or deflate stock prices, but they were willing to risk money today to find out.
The day began slowly, but stocks caught a spark when energy prices rose on news that weekly crude oil inventory fell more than expected. Markets then continued higher the remainder of the day on the backs of surging energy and materials stocks. Crude oil finished more than 5% higher on the day.
Also boosting indices, the Shanghai Composite rose 5% overnight, and the September National Association of Home Builders Index came in at 62, the highest level since 2005. The Consumer Price Index (CPI) was off 0.1%, its first decline in seven months. Excluding food and energy, it was up 0.1%.
The Dow Jones Industrial Average and S&P 500 were both 0.8% higher. The Nasdaq was a bit less robust, up 0.6%.
There was more acquisition news lifting stocks today. Molson Coors Brewing Company (NYSE:TAP) and Adept Technology Inc (NASDAQ:ADEP) were two benefactors, and Fitbit Inc (NYSE:FIT) had its own good news, with all three companies landing on our list of today’s best stocks.
Molson Coors Brewing Company (TAP)
A proposed merger between Anheuser Busch Inbev SA (ADR) (NYSE:BUD) and SABMiller plc (OTCMKTS:SBMRY) propelled beer stocks higher today, including TAP, which gapped up more than 14% on strong volume of 20 million shares.
Yesterday, TAP announced that it will be closing its brewery in Eden, North Carolina a year from now, because of a continuing decline in volumes and sales.
TAP stock had been in a steady decline from $78 to $66 since April, but today’s action took out all recent resistance.
Fitbit Inc (FIT)
Sellers of Fitbit yesterday were having a “fit” today, after the manufacturer of wearable fitness tracking devices stormed 12% higher. The company announced its compliance with the U.S. Health Insurance Portability and Accountability Act (HIPAA), a law which protects the security and confidentiality of consumers’ personal health information.
The reason that this propelled FIT stock shares higher is because FIT’s wellness software can now be integrated with corporate wellness and health plans, as well as self-insured workers, all of which are HIPAA covered.
Adept Technology Inc (ADEP)
ADEP stock blistered 62% higher on heavy volume after announcing that they will be acquired by Japanese technology company OMRON Corp ADR (OTCMKTS:OMRNY) in a deal worth about $200 million. Adept Technology is a company that manufactures and sells industrial and mobile robots. It’s a perfect fit for OMRON, which sells automation components to factories throughout the world.
The terms of the deal have OMRON paying $13 per share in cash for all outstanding shares of ADEP in a tender offer on September 23, with a closing about one month later. This is a 63% premium to Tuesday’s closing price of $7.98.
ADEP CEO Rob Cain will continue in his current position after the purchase, but will report to CEO Nigel Blakeway of Omron Management Center of America.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
