Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average (^DJI) rose Thursday after tumbling the previous session and ending a four-day winning streak.
- The Consumer Price Index gained 0.1% in June, and CPI for the last 12 months rose 2.9%, a six-year high.
- Broadcom Inc. (AVGO) - Get Report fell 14% after it reached an agreement to acquire software company CA Technologies (CA) - Get Report for $18.9 billion in cash.
Wall Street Overview
Stocks ended near the day's highs on Thursday, July 12, and
following the previous session's selloff that was driven by the U.S. trade fight with China.
Stocks in the U.S. and around the globe tumbled on Wednesday, July 11, after the U.S. threatened additional tariffs on $200 billion worth of China-made goods.
The Consumer Price Index, a measure of inflation at the consumer level, rose 0.1% in June, below economists' estimates of up 0.2%. CPI for the latest 12 months rose to 2.9%, the highest since 2012.
CA shareholders will receive $44.50 a share under the terms of the agreement, which was approved by the boards of both companies. The price is roughly 20% above CA Technologies closing price Wednesday of $37.21.
CA rose 19% to $43.99, while Broadcom shares fell 14%.
Comcast said late Wednesday it will pay £14.75 a share for Sky, which is 39%-owned by Twenty-First Century Fox Inc. (FOXA) - Get Report, in a bid that tops its prior offer of £12.50 and trumps the improved bid of £14 a share from Fox that was announced on Wednesday.
On Thursday, the U.K. cleared Fox to buy Sky.
Comcast's bid values Sky at $34 billion, just ahead of the $32.5 billion bid from Fox. Sky sits at the heart of the takeover tussle between Comcast and Walt Disney Co. (DIS) - Get Report, which are battling to buy Fox's entertainment properties.
Delta Air Lines Inc. (DAL) - Get Report reported second-quarter adjusted earnings of $1.77 a share, 5 cents ahead of estimates, as revenue of $11.8 billion beat forecasts of $11.7 billion. The airline lifted its quarterly dividend by 15% to 35 cents a share.
Delta said it was forecasting full-year earnings of $5.35 to $5.70 a share, below analysts' expectations of $5.74 because of an "expected $2 billion higher fuel bill for 2018." The stock rose 1.7%.
Papa John's International Inc. (PZZA) - Get Report said its founder, John Schnatter, resigned as chairman after he apologized for using a racial slur during a conference call in May. Shares rose 11.7%.
Twitter Inc. (TWTR) - Get Report said Wednesday that tens of millions of accounts previously locked because of suspicious activity will be purged from its follower counts, a closely watched metric. The company said "most" people will lose "four followers or fewer," but prominent Twitter accounts - like those of celebrities and public figures - "will experience a more significant drop," CNN reported.
Twitter shares rose 3%.
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