U.S. markets were back on track today after Friday’s huge selloff, as analysts speculated that the selling was overblown on fears of a Federal Reserve rate hike in June, following a jobs report that was stronger than expected. Apple Inc. (NASDAQ:AAPL) unveiled a new watch, along with several other product modifications.
Today was six years to the day that the bull market began, following a two-year decline that dropped stock prices substantially lower. Today was also the first day of the European Central Bank’s bond-buying program, which is expected to be $60 billion per month.
The Dow Jones Industrial Average rose 0.8%, the S&P 500 climbed 0.4% and the Nasdaq Composite was 0.3% higher. Almost all sectors were positive today, with industrial and healthcare stocks above the rest.
A number of major acquisitions surprised and delighted Wall Street today, as Big Lots, Inc. (NYSE:BIG), RTI International Metals, Inc. (NYSE:RTI) and Pinnacle Entertainment, Inc (NYSE:PNK) were three of today’s best stocks.
Big Lots, Inc. (BIG)
BIG stock scored big following Friday’s announcement of its fourth-quarter fiscal 2014 earnings of $1.76 a share, 1 cent above the Zacks Consensus Estimate, and up 21.4% from the same quarter a year ago. Revenue of $1.6 billion was up 1.4% year-over-year and also edged analysts’ estimates.
There was additional good news in the form of a quarterly dividend increase, from 17 cents to 19 cents a share, payable on April 3 to shareholders as of March 20. Big Lots also authorized a $200 million buyback of its stock.
The good news didn’t end there, however, as Barclays increased its price target for BIG stock from $45 to $53, and maintained an “equal weight” rating.
BIG stock rose 5% on the day. BIG stock is up about 30% since December.
RTI International Metals, Inc. (RTI)
RTI stock was soaring today, up 39% amid news that it would be acquired by Dow component Alcoa Inc (NYSE:AA) for $1.5 billion, or about $41 per share.
RTI is a leading manufacturer of fabricated titanium products for aerospace companies. Alcoa said about $1.2 billion in revenue will be generated by 2019 from the purchase of RTI, and that buying RTI will expand its range of titanium products and help increase its exposure to the aerospace industry.
Pinnacle Entertainment, Inc (PNK)
PNK stock also blasted higher today by 15% after Gaming and Leisure Properties Inc (NASDAQ:GLPI), a spinoff of Penn National Gaming, Inc (NASDAQ:PENN) made a $4.1 billion hostile offer for it. GLPI sent a letter to the board of directors, stating its desire to acquire PNK’s real estate assets and take over its debt in exchange for stock shares, valued near $36 a share.
Management rejected the offer, but GLPI said it will make the offer directly to PNK shareholders if PNK refuses to negotiate a deal. Pinnacle owns and operates 14 gaming properties throughout the midwest and western U.S.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
