Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average I:DJI rose Monday, after finishing last week with a gain of 1.4%.
- SodaStream International Ltd. (SODA) - Get Report rose nearly 10% after PepsiCo Inc. (PEP) - Get Report agreed to buy the Israeli company for $3.2 billion.
- Tesla Inc. (TSLA) - Get Report fell 0.7% after JPMorgan slashed its price target on the electric vehicle maker.
Wall Street Overview
Stocks closed higher on Monday, Aug. 20, as investors awaited trade talks between the U.S. and China later this week and a meeting of central bankers.
The Dow Jones Industrial Average I:DJI gained 89 points, or 0.35%, to 25,759, the S&P 500 I:GSPC rose 0.24%, and the Nasdaq I:IXIC rose 0.06%. Dow component Nike Inc. (NKE) - Get Report rose 3.1% after analysts at Susquehanna Financial Group upgraded shares of the athletic apparel maker to positive from neutral.
Investors this week will look to a speech from Jerome Powell, chairman of the Federal Reserve, who will speak at the Jackson Hole Central Banking Symposium on Friday, Aug. 24. Powell reportedly will be discussing the economy and monetary policy when he gives his speech at Jackson Hole, Wyoming.
Meanwhile, a delegation led by China's vice commerce minister, Wang Shouwen, will conduct two days of talks in Washington starting on Wednesday.
PepsiCo agreed to pay $144 per Sodastream share, which represents an almost 11% premium to SodaStream's closing price on Friday, Aug. 17, to gain control of the company's in-home soda technology. PepsiCo said the price represented a 32% premium to the 30-day volume weighted average.
SodaStream jumped 9.4% to $142.06. PepsiCo shares fell 0.04%.
The acquisition is PepsiCo's largest in eight years and marks a last hurrah for CEO Indra Nooyi, who earlier this month said she would step down as CEO in October and remain chairman until early 2019. She will be replaced by company insider Ramon Laguarta, who ran the company's Europe Sub-Saharan Africa division before being elevated to president last year.
- PepsiCo to Buy SodaStream in $3.2 Billion Deal
- PepsiCo Spends $3.2 Billion to Help Save the Planet and Sell More Flavor Pods
JPMorgan analyst Ryan Brinkman cut his price target Monday on Tesla Inc. (TSLA) - Get Report to $195 from $308, saying that it appeared "funding has not been secured" for CEO Elon Musk's proposal to take the electric vehicle maker private.
Musk said earlier this month he was considering taking Tesla private for $420 a share and added that funding was "secured." Last week, Musk said he believed Saudi Arabia's PIF could provide the necessary funding, although sources close to the sovereign wealth fund have played down that prospect, according to Reuters.
A report from Reuters on Monday said PIF was in talks with Tesla rival Lucid Motors Inc. about investing the company.
Tesla shares fell 0.1% to $305.24, trimming earlier losses.
- Tesla Gets Major Price Target Slash From JPMorgan After Rough Weekend
- Wall Street Still Thinks Tesla Could Soar to Elon Musk's $420 Target Price
Estee Lauder Cos. (EL) - Get Report posted fiscal fourth-quarter adjusted earnings of 61 cents a share as sales rose 14% to $3.3 billion. Analysts expected earnings of 56 cents on revenue of $3.26 billion.
The cosmetics maker said it expects fiscal first-quarter adjusted profit of $1.18 to $1.22 a share and sales in the period to rise 5% to 6%. The stock rose 3.2%.
Estee Lauder is Real Money's 'Stock of the Day' on Monday.
Later this week, a host of retailers such as Target Corp. (TGT) - Get Report , Kohl's Corp. (KSS) - Get Report , Gap Inc. (GPS) - Get Report , TJX Cos. (TJX) - Get Report and Foot Locker Inc. (FL) - Get Report , are scheduled to issue earnings reports.