Why Twitter Inc (TWTR), Sysco Corporation (SYY) and Alere Inc (ALR) are 3 of Today’s Best Stocks

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U.S. markets began the week on a sour note, after another wave of selling in China and the oil pits sent the indices running for cover from the opening bell.

Why Twitter Inc (TWTR), Sysco Corporation (SYY) and Alere Inc (ALR) are 3 of Today's Best StocksChina’s PMI for January came in at 49.4, the weakest reading in China since the summer of 2012. Any number below 50 represents contraction. Last month’s reading was 49.7 and economists were looking for 49.6. The Chinese PMI has now contracted for six consecutive months.

China’s news sent crude oil prices down 4%, and that triggered a sell-off to begin the day. Oil closed down over 6% for the day. Another factor weighing oil down was a lack of ongoing enthusiasm for the OPEC production cuts that had the markets all excited last week.

In U.S. economic news, personal income rose 0.3% in December, a tick higher than the street’s estimate, but seemed to have little initial impact on stock prices. But by the 3 p.m. hour, stocks began to rally, and finished the day about flat.

The Dow Jones Industrial Average was down 0.1%, the S&P 500 was flat, and the Nasdaq was up 0.1%. Just like the indices, sectors were mixed today, with telecommunications and utilities again showing strength, while energy stocks were weaker.

Mergers and acquisitions had some stocks, such as Twitter Inc (NYSE:TWTR), and Alere Inc (NYSE:ALR) vaulting higher, while others, like SYSCO Corporation (NYSE:SYY) showed off earnings to become three of today’s best stocks. Here’s the full report:

Twitter Inc (TWTR)

TWTR stock was a big winner today after Bloomberg reported that Twitter may be a takeover candidate by investor Marc Andreessen and private equity company, Silver Lake Resources Limited. Such a deal could be financed with newly created shares in a PIPE deal.

TWTR stock has been severely trounced by the market over the last year, has been cut in half just since November and has recently undergone a shakeup in upper management, with four top executives leaving the company.

TWTR stock gained over 6.6% on the day. SLR stock was down over 1%.

SYSCO Corporation (SYY)

Houston food distributor Sysco gapped higher today after reporting some delicious second-quarter 2016 earnings, with SYY stock finishing the day up 8%. Sysco reported 48 cents a share on revenue of $12.2 billion, with both numbers beating analysts’ estimates for 41 cents a share on $12.17 billion.

Trian Fund Management disclosed a 7% stake in Sysco last year and pressured the company to make whatever changes were necessary to increase the stock’s value. Today CEO Bill DeLaney cited containing expenses as part of the reason for the good earnings report.

SYY stock had been trading sideways since August and was below the 50-day moving average since 2016 began, but today’s action sent it well above that mark.

Alere Inc (ALR)

One of the biggest gainers on Wall Street today was the Waltham, MA-based medical testing company, Alere. Abbott Laboratories (NYSE:ABT) announced it has acquired ALR in a deal valued at $5.8 billion.

Under the terms of the deal, ABT will pay $56 a share in cash and take over some $2.6 billion debt that ALR is currently holding. Alere, which makes “point-of-care” tests, for infectious and other diseases, is a good fit for Abbott to be able to reduce health care costs. The deal is expected to add about $2.5 billion in 2016 sales for Abbott.

ALR stock fell from $54 to $34 between September and January, but today’s acquisition put the stock right back up to its former highs. ALR stock soared 45% today, and ABT stock was up over 1.5%.

As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/02/twitter-inc-twtr-sysco-corporation-syy-alere-inc-alr-3-todays-best-stocks/.

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