Kroger Expands Atlantic Reach: Tuesday’s IP Market Recap

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

InvestorPlace 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 As of this writing he does not hold a position in any of the aforementioned securities.

  1. [Image]:
  2. AA:
  3. KR:
  4. $2.4 billion ($49.38 per share) acquisition:
  5. HTSI:
  6. FDX:
  7. BKS:
  8. taking the fall:
  9. SIRI:
  10. raised its estimates for full-year net subscriber growth:
  11. TSLA:
  12. gets set to move:
  13. ORCL:
  14. IBM:
  15. FSL:
  16. HMA:
  17. ALK:
  18. ISRG:
  19. JKS:
  20. MU:

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