Shares of Ally Financial stumbled in the company’s trading debut. 95 million of Ally’s shares were offered at the low end of the expected range at $25 a piece. The sale raised about $2.4 billion, making it the year’s biggest initial public offering so far. The shares were sold off by the U.S. government, which took a $17 billion stake in the auto lender during the 2008 financial crisis. Shares were off four percent to $23.98.
Shares of Rite Aid surged after the drug store chain announced a full-year sales forecast that is above analysts’ estimates. The company expects to benefit from new generic drug launches and it thinks it will enroll more customers in its loyalty program. Earnings easily topped estimates due to strong pharmacy sales. That sent the stock up about 8.5 percent $6.94.
It was the opposite story for Family Dollar. The discount retailer announced an earnings miss, blaming harsh winter weather. It also says it will close 370 stores and cut prices on a lot of basic items. Shares fell more than three percent to $57.17.
Ebay and Carl Icahn have ended their proxy fight. Icahn agreed to drop his proposal that the company split off its PayPal business and he withdrew his two nominees from the board. But Ebay will appoint one of the Icahn’s suggested members. Despite that optimism. Ebay shares fell more than three percent to $54.08.
Merck says its Hepatitis C treatments showed a 98 percent cure rate in a mid-stage trial. The two-drug combination pill stopped the virus in newly-treated patients with few major side effects. Despite that, Merck couldn’t escape a down-draft in the markets, shares lost more than two percent to $55.85.