Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average fell Monday after closing Friday with a record high for the second consecutive session.
- Canada's Barrick Gold Corp. (ABX) agreed to acquire Randgold Resources Ltd. (GOLD) in a deal that will create the world's largest gold company.
- Sirius XM Holdings Inc. (SIRI) reached a deal to acquire Pandora Media Inc. (P) in a deal valued at $3.5 billion.
Wall Street Overview
Stocks ended mostly lower on Monday, Sept. 24, while oil prices surged to a four-month high as investors reacted to sharply worded attacks on Donald Trump's trade and energy policies as well as fresh turmoil in Washington.
The Dow Jones Industrial Average
Stocks had been down even before said U.S. Deputy Attorney General Rod Rosenstein was planning to leave his post in anticipation of being fired by Trump, according to Axios. The White House said Trump and Rosenstein would meet Thursday.
OPEC decided to make no changes to its output quotas at its weekend meeting in Algeria, with Saudi Arabia's energy minister insisting that the global oil market is "balanced" and that he "doesn't influence prices," a clear reference to Trump's tweet last week demanding the cartel "get prices down now!"
West Texas Intermediate crude rose 2.2% to $72.30 a barrel, while futures for Brent crude, the European benchmark, rose 2.7% to $80.38 a barrel.
China, meanwhile, accused the U.S. of "trade bullyism" soon after the U.S and China issued levies of $260 billion on each other's goods.
Sirius XM Holdings Inc. (SIRI) reached an agreement to acquire music-streaming service Pandora Media Inc. (P) in an all-stock deal valued at $3.5 billion that marks yet another shakeup in the U.S. media and entertainment sector.
Pandora shareholders will get 1.44 newly issued SiriusXM shares for each Pandora share, a fixed exchange rate that factors in SiriusXM's existing 15% holding of convertible preferred shares. The combination will create world's largest audio entertainment company, the companies said, with 2018 pro-forma revenue of around $7 billion.
Pandora fell 1.2% to $8.98 on Monday. Sirius shares fell 10.5%.
Toronto-based Barrick will own around two-thirds of the combined company. Randgold's Mark Bristow will serve as CEO and Barrick's John Thorton will retain his role as executive chairman. The newly created gold-mining giant group will have a market value of around $18.3 billion, hold five of the world's 10 largest bullion deposits and have the ability to produce around 5.5 million ounces of gold each year.
American depositary receipts of Randgold jumped 6.6% on Monday. Shares of Barrick Gold rose 5.3%.
Comcast Corp. (CMCSA) slid 6% on Monday after it outbid rivals Walt Disney Co. (DIS) and Twenty-First Century Fox Inc. (FOX) for the right to buy the outstanding shares of Britain's Sky PLC (SKYAY) however, it may struggle to convince shareholders to cash-in on the near $40 billion offer.
With Disney set to hold a 39% stake in Sky following its $71.3 billion takeover of Fox, and activist shareholders such as Elliot Management perhaps content to hold onto their investments, Comcast could be stuck between paying a high price for Sky but not having complete control over Europe's biggest pay-TV broadcaster, despite a ringing endorsement from the target.
"It is in the best interests of all Sky Shareholders to accept the (Comcast offer)," Sky said Monday. "Accordingly, the Sky Independent Committee unanimously recommends that Sky Shareholders accept the (Comcast offer), and in order to ensure the successful closing, and given the possibility of a delisting of Sky in the near future, urges shareholders to accept immediately."
General Electric Co. (GE) fell 3.5% to $11.74 following on from losses suffered last week after the head of the company's power unit confirmed an issue with a new model of its gas turbine.
Michael Kors Holdings Ltd. (KORS) agreed to take control of Italian fashion icon Versace, three sources familiar with the matter told Reuters on Monday, adding that an official announcement would be made this week. Michael Kors fell 8.2%.
Sears Holdings Corp. (SHLD) declined 2.8% after CEO Eddie Lampert said in a filing he wanted to restructure the struggling retailer to hold off bankruptcy.
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