Monday January 9, 2017 – Friday January 13, 2017
On Monday, there wasn’t much economic news, however, Boston Fed President Eric Rosengren said the Fed should hike the pace of interest rates this year, warning that inflation may accelerate. U.S. 10 year Treasury notes yielded 2.38%. Markets were mostly down, however, the Nasdaq composite rose slightly to close at a record high.
On Tuesday, the JOLTS job report for November rose a little over 1% to 5.52 million job openings and the NFIB small business optimism index jumped 7.4 points in December to 105.8, its highest level since December of 2004. Once again, markets didn’t do much, but the Nasdaq composite rose to close at a record high.
On Wednesday, the EIA petroleum status report for the week ending January 6th saw crude oil inventories rise 4.1 million barrels. Biotech stocks dropped after President-elect Trumpmade negative remarks about the drug industry, however, later in the afternoon a recovery enabled the Nasdaq composite to close at a record high. Investors watched as Trump’s nominee for secretary of State Rex Tillerson testified at his confirmation hearing, and speculation continued on how a Trump administration’s policies will impact markets.
On Thursday, jobless claims for the week ending January 7th rose 10,000to 247,000. Import prices for December rose .4% compared to the previous month’s .2% decline, and export prices rose .3%, compared to the prior month’s .1% drop.
On Friday, the producer price index for December rose .3%, and retail sales jumped .6%. Now let’s take a look at some stocks.
Mars Incorporated, well-known for its candy, announced this week that it will acquire the pet health company, VCA Inc. in a deal valued at $9.1 billion. The acquisition is expected to close in the third quarter, subject to shareholder and regulatory approval. In the statement, Mars will acquire all of VCA’s shares for $93 per share, including outstanding debt of $1.4 billion. The price paid represents a premium of around 31% over VCA’s closing price on January 6, 2017.
Canadian manufacturer of branded clothing, Gildan Activewear, Inc. (NYSE: GIL) rose over 3% after the company successfully acquired American clothing manufacturer and retailer, American Apparel in a bankruptcy auction for $88 million in cash. Under the deal, Gildan will obtain the intellectual property rights associated with the American Apparel brand and manufacturing equipment. The company, will not buy any of the 110 American Apparel retail stores.
Shares of oncology company, ARIAD Pharmaceuticals, Inc. (NASDAQ: ARIA) skyrocketed well over 70% after being bought out by Takeda Pharmaceuticals. The deal, worth $5.2 billion, involved Takeda paying ARIAD shareholders $24 per share in cash, and is expected to close before the end of the month as both boards have signed the deal.
Valeant Pharmaceuticals International, Inc. (NYSE: VRX) agreed to sell three skin care brands and its Dendreon cancer business for about $2.1 billion, a move that will help the company ease its debt burden. The three skin-care brands CerAve, AcneFree and Ambi were purchased by L’Oreal SA for $1.3 billion and the Chinese conglomerate Sanpower Group Co. will pay about $820 million for the Dendreon Pharmaceuticals unit. Shares of Valeant rose over 10% after the announcement.