Post Market News
Stocks that were active in U.S. trading on Wednesday include Smithfield Foods, Inc. (NYSE:SFD), The Wet Seal, Inc. (NASDAQ:WTSL), Stewart Enterprises Inc. (NASDAQ:STEI), Trina Solar Ltd. (NYSE:TSL) and KKR & Co. LP (NYSE:KKR).
- U.S.: Dow Jones: 15,323.61 (-0.56%), S&P 500: 1,648.47 (-0.70%), Nasdaq: 3,467.52 (-0.61%)
- World Markets: Shanghai: 2,324.02 (+0.12%), Nikkei 225: 14,326.46 (+0.10%), Hang Seng Index: 22,554.93 (-1.61%), TSEC: 8,337.90 (+0.91%), FTSE 100: 6,627.17 (-1.99%), EURO STOXX 50: 2,786.54 (-1.74%), BSE Sensex: 20,147.64 (-0.07%)
- Metals: Gold: $1,391.30 (+0.90%), Silver: $22.45 (+1.17%), Platinum: $1,453.00 (-0.60%)
- Currency: EUR/USD: 1.2934 (+0.46%), USD/JPY: 101.15 (-0.91%), GBP/USD: 1.5124 (+0.40%), USD/CAD: 1.0356 (-0.27%), USD/CNY: 6.1267 (+0.08%), AUD/USD: 0.9634 (-0.06%)
- 10 year U.S. Treasury: 2.12% (-0.02), 30 year U.S. Treasury: 3.27% (-0.02)
Market & Economy Update
Boston Federal Reserve Bank President Eric Rosengren said today that a modest cut in the Fed’s stimulus program in a few months makes sense. He said the labor market and economy as a whole are expected to be strong enough in a few months to weather a reduction in bond buying. Stock markets ended the session lower today. The Dow Jones Industrial Average fell 106.21 points to 15,303.18, the S&P 500 Index declined 11.70 points to 1,648.36 while Nasdaq plunged 21.37 points to 3,467.52.
Stocks In Focus
Smithfield Foods, Inc. (NYSE:SFD)
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Smithfield announced today that it is being acquired by China’s Shuanghui Group for about $4.7 billion. Shuanghui is paying $34 per Smithfield share, a 31 percent premium to Wednesday’s closing price. Continental Grain Company, the largest shareholder of Smithfield, has been putting pressure on the company to split itself into three. Shares rose 28.42 percent to $33.35 at the end of the trading session.
The Wet Seal, Inc. (NASDAQ:WTSL)
The women’s apparel retailer returned to profit zone in the first quarter amid improved margins and lower expenses. Wet Seal earned 3 cents a share with $140 million in revenues. Analysts polled by Thompson Reuters were expecting 2 cents in earnings and $139 million in sales. The company also issued upbeat guidance for the current quarter. Shares jumped 8.44 percent to close the session at $4.88.
Stewart Enterprises Inc. (NASDAQ:STEI)
Service Corporation International (NYSE:SCI) has agreed to purchase Stewart Enterprises for $1.1 billion or $13.25 a share in cash, a 36 percent premium to its closing price on Wednesday. Service Corp. plans to strengthen its foothold in North America’s fragmented funeral and cemetery industry. Stewart shares jumped 33.16 percent to end the session at $12.97.
Trina Solar Ltd. (NYSE:TSL)
The Chinese solar products maker reported wider than expected first quarter losses. Margins continue to shrink, and the company once again reported a double digit percentage decline in revenues. American shares of the company skidded 11.05 percent to $6.04 a share.
KKR & Co. LP (NYSE:KKR)
The private equity firm has joined hands with Carlyle Group LP (NASDAQ:CG) to bid for the Australian unit of Singapore Telecommunications, Optus Satellite. The Singaporean company expects Optus Satellite to fetch about $1.93 billion. KKR shares skidded 2.62 percent at the close of the trading session to $20.11.