Dow Jumps Ahead of Inflation, Jobs Data

2 hr 41 min ago

Coming off two consecutive weeks of declines, the Dow Jones Industrial Average began the week by gaining 0.6%, or 213 points, putting the index on a two-day winning streak ahead of key inflation and jobs data later in the week.

3M (MMM) shares surged 5.2% to lead the Dow higher as the conglomerate reportedly reached a $5.5 billion resolution of litigation alleging it delivered defective earplugs to the U.S. military. Analysts had been expecting the settlement to total between $10 billion and $15 billion. 

Goldman Sachs (GS) rose 1.8% after selling its Personal Financial Management business to Kansas-based investment advisor Creative Planning, part of the investment banking giant’s plan to pull back from serving “Main Street” clients and focus on the ultrawealthy.

Intel (INTC) shares rose 1.1% after Commerce Secretary Gina Raimondo raised the U.S. chipmaker’s concerns about China’s treatment of it in a meeting with her Chinese counterpart, Wang Wentao. Intel scrapped its $5 billion acquisition of Tower Semiconductor (TSEM) earlier this month after failing to get approval from Chinese regulators. 

Walt Disney Company (DIS) gained 1% as the entertainment giant looks to recover some ground after losing 5.5% so far this month.

Amgen (AMGN) shares rose just 0.1% after the Federal Trade Commission paused a court challenge to its acquisition of Horizon Therapeutics (HZNP), which moved 5% higher on the development.  

Merck & Co. (MRK) and Johnson & Johnson (JNJ) both dropped 1.2% despite the healthcare sector as a whole rising 0.25% today.

Travelers Companies (TRV) shares fell 0.6% as Tropical Storm Idalia threatened the Florida Gulf Coast.

-Terry Lane

American Airlines Fined $4.1M for Passengers Stranded 3+ Hours on Runway

3 hr 7 min ago

The U.S. Department of Transportation (DOT) fined American Airlines (AAL) $4.1 million for violating its rules on tarmac delays of three or more hours.

The DOT’s investigation found that the airline held “dozens of flights” on the tarmac for long periods without allowing passengers off the plane. The $4.1 million fine levied against American is the largest ever for the Tarmac Delay Rule.

The company’s shares rose 1.2% Monday, and have returned about 16% year-to-date.

-Kevin George

Goldman Sachs Strikes Deal to Sell Another Consumer Banking Unit

3 hr 26 min ago

Goldman Sachs Group (GS) announced Monday that it would sell its Personal Financial Management (PFM) unit for an undisclosed price to independent wealth management firm Creative Planning, another step toward unwinding its ill-fated push into consumer banking.

The deal is expected to close in the fourth quarter of this year. The value of the transaction was not disclosed, but Goldman said in a press release it expects the sale to “result in a gain.”

Goldman has been offloading units this year to refocus on its core clientele: ultra high net worth individuals. Last month, Goldman sold $1 billion of loans held by Marcus, its consumer lending unit, to Investment firm Varde Partners. It is also in the process of selling Greensky, the fintech lender it bought for more than $2 billion in 2021.

Goldman shares gained 1.5% on Monday.

Boston Scientific Reports Positive Results from Atrial Fibrillation Device

4 hr 35 min ago

Boston Scientific (BSX) was the best-performing stock in the S&P 500 after the medical device maker reported positive results from a clinical trial for its system to treat patients with atrial fibrillation (AF).

The Farapulse Pulsed Field Ablation (PFA) uses electric fields to remove heart tissue causing irregular heartbeats, rather than the more traditional thermal method. Data showed the Farapulse performed as well as standard-of-care therapies, meeting the primary efficacy and safety endpoints, the company said.

Boston Scientific shares rose to their highest level since July on the news. 

-Bill McColl

Midday Market Movers

5 hr 9 min ago

Hawaiian Electric Industries Inc. (HE): Shares of the Hawaiian utility gained 40% after it pushed back against a lawsuit filed by Maui County blaming it for the deadly wildfires that swept across the island earlier this month.

Jabil Inc. (JBL): The electronics manufacturer’s shares gained 9% after it said it had agreed to sell its mobility business to Chinese carmaker BYD Co. Ltd. (BYDDY) for $2.2 billion. 

RPT Realty (RPT): Shares of the real estate investment trust (REIT) gained 18% after Kim Realty, a REIT focused on open-air shopping centers, offered to buy RPT for $2 billion.

Crowdstrike Holdings Inc. (CRWD): The cybersecurity provider’s shares fell more than 4% after it was downgraded by Morgan Stanley, which cited the possibility of worse-than-expected guidance when Crowdstrike reports quarterly earnings on Wednesday. 

NovoCure Ltd. (NVCR): Shares of the oncology tech company fell 35% after it reported its ovarian cancer treatment failed to improve patients’ survival rate in a clinical trial. 

Vinfast Shares Surge 20%, Nears World’s Second Most Valuable Automaker

6 hr 7 min ago

Shares of Vietnamese electric vehicle maker VinFast Auto Ltd. (VFS), which went public via SPAC merger just two weeks ago, jumped more than 20% Monday, pushing its market value to about $200 billion and putting it within striking distance of the world’s second-most valuable automaker.

Tesla Inc. (TSLA), with a market capitalization of $750 billion, is the world’s highest-valued car manufacturer. The next four most valuable automakers are as follows:

• Toyota Motor Corp. (TM): $220 billion
• VinFast: $200 billion
• BYD Co. Ltd. (BYDDY): $86 billion
• Mercedes Benz Group AG (MBGYY): $78 billion

VinFast’s stock has jumped more than 500% since debuting on Aug. 15, boosted by its small float, speculating retail traders, and EV hype.

3M Shares Jump on Reports It Reached a $5.5 Billion Settlement Over Earplug Lawsuits

7 hr 17 min ago

3M (MMM) shares jumped over 4% in early trading on Monday and it was the best-performing stock in the Dow after reports the conglomerate tentatively settled lawsuits over accusations of hearing loss by members of the military who used its earplugs.

3M is expected to pay $5.5 billion to resolve the litigation brought by more than 300,000 veterans in the largest mass tort in U.S. history. However, that would be well below the $10 billion to $15 billion some analysts had anticipated. Negotiations are reportedly continuing, and the company’s board has yet to vote on the proposal.

Despite Monday’s gains, shares of 3M remained lower for 2023.

-Bill McColl

Horizon Therapeutics Shares Surge As FTC Postpones Challenge to Merger

8 hours ago

Horizon Therapeutics (HZNP) shares jumped more than 5.5% in early trading Monday after the FTC said it would suspend its challenge to Amgen’s (AMGN) acquisition of the drug maker.

The U.S. Federal Trade Commission (FTC) said late Friday it is pausing its effort to stop Amgen’s $27.8 billion purchase of Horizon Therapeutics, which was initiated on the grounds that a merger could limit competition in the marketplace for life-saving drugs used to treat two critical illnesses. The pause is in effect until Sept. 18.

Amgen has challenged the FTC’s lawsuit, saying in a press release that its acquisition “will bring significant benefits to patients suffering from very serious rare diseases in the U.S. and around the world.” The company is scheduled to argue with the FTC in a Chicago federal court next month, and both parties can settle in the interim.

Horizon Therapeutics shares have fallen just under 1% so far this year, with those of Amgen down 2%. They’ve performed roughly in line with the broader S&P 500 healthcare sector, down 1% year-to-date.

-Mack Wilowski

Instacart Files for Nasdaq IPO

8 hr 33 min ago

Instacart, the grocery delivery company that saw a boom in business amid pandemic lockdowns, filed its paperwork to go public on Friday. The company’s shares will trade on the Nasdaq under the ticker symbol “CART.”

In its SEC Form S-1, the company said it earned $242 million on $1.5 billion in revenue in the first half of this year, making it one of the few gig economy companies to report a profit before going public.

The company’s filing also revealed PepsiCo Inc. (PEP) would buy $175 million of preferred stock in a private placement.

Xpeng to Acquire Ride-Hailing Company Didi’s Smart EV Development Business

9 hr 22 min ago

Chinese electric vehicle startup Xpeng (XPEV) agreed to buy ride-hailing company Didi Global Inc.’s smart-car development business for $744 million in an all-stock deal that could give Xpeng a tech edge in the competitive market.

DiDi will become a strategic shareholder of Xpeng in an all-stock deal, gaining about 3.25% of the smart EV maker’s outstanding shares, with a lock-up period of 24 months after the initial closing. At the indicated rate, the offer price is at a 1.7% discount to Xpeng’s closing price on Friday.

Xpeng, in partnership with Didi Global Inc., plans to launch a new EV brand in 2024 that is being developed under the project name “MONA”. The new brand is targeted at the mass market segment at an expected price point of about RMB150,000 (approximately $20,500).

Xpeng’s U.S.-listed shares gained about 2.5% early Monday.

-Fatima Attarwala

Stocks Making the Biggest Moves Premarket

9 hr 51 min ago

Gainers:

• 3M Co. (MMM): Shares of the industrial conglomerate gained more than 6% after reports it is nearing an estimated $5.5 billion settlement to resolve claims by more than 300,000 veterans that its earplug failed to protect them from hearing loss. 
• XPeng Inc. (XPEV): American depositary receipts (ADRs) of the Chinese electric vehicle maker rose more than 5% after it announced it would acquire ride-hailing company Didi’s (DIDIY) smart electric car development business for $744 million.
• Horizon Therapeutics Plc. (HZNP): Shares rose 5% after the Federal Trade Commission said it was suspending its challenge to Amgen’s (AMGN) $28 billion acquisition of the biopharmaceutical company.

Losers:

• Abcam Plc. (ABCM): The health tech company’s shares lost 4%, falling to about $22.30 after it agreed to be acquired by Danaher Corp. (DHR) for $24 a share.
• Crowdstrike Holdings Inc. (CRWD): Shares of the cybersecurity firm lost more than 2% ahead of its quarterly earnings report, to be released after markets close Wednesday. 
• Teva Pharmaceutical Industries Ltd. (TEVA): The generic drug maker’s shares fell more than 1%. Last week, the company agreed to pay $225 million and divest a cholesterol drug to resolve price-fixing allegations. 

5 Things to Know Before Markets Open

10 hr 16 min ago

Here’s what investors need to know to start their day:

1. The Federal Trade Commission (FTC) suspended its challenge of Amgen’s (AMGN) $27.8 billion acquisition of Horizon Therapeutics (HZNP) as the agency considers a settlement that would let the deal close.
2. Chinese electric vehicle (EV) company XPeng (XPEV) said it is buying the smart electric car development business of Chinese ride-hailing provider Didi.
3. 3M (MMM) has reportedly agreed to pay more than $5.5 billion to settle over 300,000 lawsuits over allegations it sold the U.S. military defective combat earplugs.
4. Fisker (FSR) shares moved 1.2% higher in pre-market trading after the electric vehicle maker said it would establish retail locations and delivery and service centers in Belgium, the Netherlands, and Switzerland.
5. ADRs of Chinese e-commerce giant JD.com (JD) gained 1.5% and Alibaba (BABA) rose 1.2% in the pre-market after China said it would lower the tax on its security transactions to 0.05% in China’s stock markets, beginning on Monday.

-Terry Lane

Futures Rise to Kick Off Last Week of August

10 hr 42 min ago

Futures contracts connected to the Dow Jones Industrial Average gained 0.3% in early trading Monday.

S&P 500 E-mini contracts were also up 0.3%.

Nasdaq 100 futures gained 0.4%.