Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average
closed sharply lower on confusion over Trump administration policy towards Chinese investments in U.S. tech.
- Among FAANG stocks, Apple Inc. (AAPL rose 0.3% and Alphabet Inc. (GOOGL declined 0.6%.
- Conagra Brands Inc. (CAG will acquire Pinnacle Foods Inc. (PF in a cash-and-stock deal valued at $8.3 billion.
Wall Street Overview
The White House suggested it wouldn't aim to block companies with at least 25% Chinese ownership from buying certain U.S. tech-related companies. The government instead plans to rely more heavily on the recently bolstered Committee on Foreign Investment in the United States to stymie threats and concerns about foreign entities purchasing sensitive domestic technologies, said a senior official from the Trump administration.
The Dow Jones Industrial Average
"We considered a number of different mechanisms for addressing the concerns articulated regarding the acquisitions of sensitive technologies that may threaten U.S. national security, national interests," the Trump official was quoted as saying. "In the end the president and his advisers settled on the idea that we have a strong and effective mechanism through the CFIUS process ... and that is a mechanism that can be used in the flexible and aggressive way to combat the practices that are troubling to the president."
Exxon Mobil Corp. (XOM and Chevron Corp. (CVX more than 1% on Wednesday after crude oil rose to a three-and-a-half year high on a decline in U.S. oil stockpiles. West Texas Intermediate crude gained 2.52% to $72.31 a barrel.
The U.S. Department of Justice released a statement on Wednesday saying it would approve Walt Disney Co.'s (DIS planned $71.3 billion acquisition of Twenty-First Century Fox's (FOXA movie and TV assets, but would require Disney "to divest 22 Regional Sports Networks as a condition." Disney shares edged lower, while Twenty-First Century Fox gained 2.4%.
Conagra Brands Inc. (CAG confirmed Wednesday it will acquire Pinnacle Foods Inc. (PF , which owns the Birds Eye and Mrs. Butterworth's brands, in a cash-and-stock deal that values the company at just more than $8 billion.
Congra Foods CEO Sean Connolly tells TheStreet's Executive Editor Brian Sozzi he is bullish on millennials, hence his Pinnacle deal. Watch below.
Conagra said Pinnacle Food investors will receive $43.11 in cash and 0.6494 a share of Conagra stock for each share held, indicating an implied per share deal price of $83 each. In cash-and-stock terms, the acquisition is worth around $8.3 billion, while the inclusion of debt takes the overall tag to $10.9 billion, the companies said.
Conagra fell 7.3%, while Pinnacle Foods declined 4.3%.
General Mills Inc. (GIS posted fiscal fourth-quarter adjusted earnings of 79 cents a share, beating analysts' expectations, while sales rose 2.2% to $3.89 billion. The stock fell 0.72%.
Facebook had banned all crypto ads on the service in January, around the time bitcoin prices surged, to prevent people from promoting "financial products and services frequently associated with misleading or deceptive promotional practices." Shares fell 1.6%.
Paychex Inc. (PAYX declined 3% after the company reported a fiscal fourth-quarter profit that came in below Wall Street expectations.here and register for free to watch what these market watchers recommend.