Investors seemed comfortable with what will come of this week’s Federal Reserve and Bank of Japan meetings, bidding stocks higher Tuesday. Oil rose and Treasury yields fell.
Ahead of Wednesday’s Fed meeting, the S&P 500 added 0.03% while the Dow Jones Industrial Average gained 0.05%. The Nasdaq Composite climbed 0.12%.
Tuesday’s star stocks included DTS Inc. (NASDAQ:DTSI), FedEx Corporation (NYSE:FDX), and Tobira Therapeutics Inc (NASDAQ:TBRA).
DTS Inc. (DTSI)
Shares of DTS Inc. surged 23% on more than 25 times the average daily volume after Tessera Technologies, Inc. (NASDAQ:TSRA) said it will acquire the company for $850 million in cash.
DTSI provides audio technology for mobile devices and automobiles, among other products. Tessera is a technology licensing firm with a presence in the semiconductor industry, among other businesses.
“Tessera said it expects the deal to immediately add to its earnings per share and free cash flow,” reports Reuters.
DTSI technology is licensed in over 2 billion products, according to Reuters.
FedEx Corporation (FDX)
Shipping giant FedEx Corporation gained 0.86% on above-average volume after the company said it will hike package shipping rates for 2017.
Rates on FDX’s ground and home delivery services could rise by 4.9%, while the company’s air shipping Express service could see rates go up 3.9%. FDX also plans to boost rates for customers shipping large packages.
“Effective 2/6/17 FedEx Express and FedEx Ground fuel surcharges will be adjusted on a weekly basis. Currently, adjustments are made on a monthly basis with a two month lag between the US Government published fuel indexes and the fuel surcharges. Adjusting on a weekly basis will reduce lag time from two months to two weeks, which provides a closer alignment between fuel costs and fuel surcharges at the time of shipment,” according to an Oppenheimer note posted by Barron’s.
Tennessee-based FedEx reports earnings after the close of U.S. markets today.
Tobira Therapeutics Inc (TBRA)
Shares of Tobira Therapeutics Inc surged more than eight-fold on volume that was more than 35 times the daily average after Allergan plc (NYSE:AGN) said it will acquire the company for $1.7 billion.
That is a massive takeover premium, representing nearly 20 times TBRA’s previous market value. TBRA makes treatments for liver disease, and also focuses on therapies for nonalcoholic steatohepatitis, or NASH.
Allergan’s offer values Tobira at $28.35, or more than six times where the stock closed yesterday.
“Tobira holders also will each receive one contingent value right to receive as much as $49.84 per share, linked to certain development and regulatory milestones,” according to the Wall Street Journal.
As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities.
