U.S. markets were weighed down today by another decline in crude oil, as well as disappointing earnings and guidance from Macy’s, Inc. (NYSE:M). Macy’s was down more than 15% intraday, and finished the day off 14%.
Other retailers, such as Nordstrom, Inc. (NYSE:JWN) and Dillard’s, Inc. (NYSE:DDS) were also trading lower as a result. Nordstrom reports third-quarter earnings on Thursday, so traders were very nervous about after seeing Macy’s results.
Crude oil dropped another 3%, as stores of oil in the U.S. increased by some 6.3 million barrels last week. Analysts were only looking for an increase of 1 million barrels. It was the fifth time in the last six sessions that oil prices finished lower.
For the second time in the past three days, the Dow Jones Industrial Average, S&P 500, and Nasdaq were all down the same amount, at 0.3%. Sectors were mixed, with energy stocks faltering, while utilities and telecomm stocks were stronger.
Mergers and earnings again ruled the day, explaining why Molson Coors Brewing Company (NYSE:TAP), Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM) and Amira Nature Foods Ltd (NYSE:ANFI) are three of today’s best stocks.
Here is the full accounting.
Molson Coors Brewing Company (TAP)
It may have been the day that Anheuser-Busch InBev SA (ADR) (NYSE:BUD) made a formal offer to buy SABMiller plc (ADR) (OTC:SBMRY), but Molson Coors Brewing Company was a bigger winner than those two, rising 4% on strong volume of 10.4 million shares.
The reason that TAP was up so much was because AB inBev simultaneously announced an agreement to sell SABMiller’s 58% stake in MillerCoors to Molson Coors for $12 billion, contingent on the closing of the main deal.
The terms of the deal give TAP full ownership of the Miller brand portfolio internationally, and the company will keep the rights to all brands that are now in the MillerCoors portfolio inside the U.S.
This somewhat complicated deal was structured to allay any concerns of antitrust issues with the U.S. Department of Justice.
Tower Semiconductor Ltd. (USA) (TSEM)
Tower Semiconductor (also called TowerJazz) stock was on fire today after the Israeli company reported adjusted earnings of 62 cents per share on $244.2 million in revenue for the third quarter. Third-quarter net income hit $13.6 million. A year ago, the company posted a quarterly loss.
Wall Street analysts were looking for 57 cents per share on $243.8 million, so TSEM beat the street on both numbers.
Also boosting share prices was an analyst upgrade, as Leader Capital Markets Ltd raised its price target on TSEM stock from $14 per share to $17 per share. TSEM gained more than 5% today.
Amira Nature Foods Ltd (ANFI)
Amira Nature Foods, a global provider of packaged Indian Basmati rice and other products, gapped up massively on Tuesday. ANFI stock closed 47% higher on very strong volume of 8.3 million shares, after announcing an agreement with KeHE Distributors, LLC to distribute Amira products across the U.S.
Sales in the U.S. of natural and organic products are expected to add over $100 billion to the bottom line as a result of the pact.
ANFI stock had been featured in this column near the end of September, shortly after it was announced that Whole Foods Market, Inc. (NASDAQ:WFM) would begin to stock some of Amira’s organic rice products.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
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