Boeing announced a $10 billion share repurchase and a 50% increase in its quarterly dividend. After today’s closing bell the company said the move came because of strong operational performance, an increase in cash flow and confidence in the future. Shares popped initially in after hours, the stock ended the regular trading day slightly higher to $134.72.
Pfizer is hiking its quarterly dividend by 8%, which will be payable to shareholders in March. Word of collaboration with Siemens AG also created buzz around the drug maker today. Siemens will develop diagnostic tests for Pfizer in an effort to sell medicine to patients who are most likely to benefit from them. Shares of Pfizer closed unchanged at $30.25.
Archer Daniels Midland
Archer Daniels Midland is lifting its dividend by 26% and buying back 18 million of its shares. The company cited strong cash flow and expected earnings improvement in 2014 as reasons for the change. The stock rose a fraction to $40.66.
AIG is selling its aircraft leasing unit in an effort to focus on its core business, insurance. Aercap holdings, a Dutch company, will buy the aircraft unit called The International Lease Finance Corporation for $5.4 billion. AIG has been trying to shed the unit since 2008. Shares of AIG rose 1% to $50.28.
LSI & Avago
Apple and Samsung chip maker, Avago technologies will buy LSI Corporation, a storage chip maker. The deal, valued at over $6.5 billion, will plunge Avago into the storage business and create a company with about $5 billion in annual revenue. That sent shares of LSI soaring up 38.5% to $10.96. Avago also popped almost 10% to $50.10.
An internal re-audit of more than 3 years of Herbalife’s financial results found no material changes, sending shares of the supplement maker much higher. This is good news for the company, which has faced criticism over its business structure and leadership. The stock was up nearly 9.5% to $74.83.
Shares of Cubist Pharmaceuticals surged after positive results for the company’s antibiotic surfaced. The drug, which treats abdominal infections, proved effective in late-stage trials. Based on the success, Cubist said it will file a new drug application with the FDA next year. The stock jumped about 6% to $66.51.