Activist hedge fund, Third Point Capital, has taken a major stake in Dow Chemical and it is pushing for a spinoff. Third Point, which is run by investor Dan Loeb, has a $1.3 billion stake in the company, which is the firm’s largest investment by dollar value. The hedge fund is pushing Dow, the country’s largest chemical maker by revenue, to sever its petrochemical business to improve performance. Shares rose more than 6.5 percent to $45.93.
Oreo cookie maker, Mondelez, added activist investor, Nelson Peltz to its board. That deal ends Peltz’s campaign to have the company sell itself to beverage and snack giant PepsiCo to generate more profit. As hopes for the merger faded, shares fell more than two percent to $34.45.
General Electric & Cameron International
General Electric is buying Cameron International’s reciprocating-compression division, which provides equipment for the oil and gas industry, for $550 million. The move is an effort by GE to get in on the boom in sale and gas fields. Separately, Citi removed GE’s stock from its focus list. That sent shares down one percent to $26.29. Shares of Cameron International were up one percent to $59.28.
Shares of the struggling smartphone maker, Blackberry, spiked after it landed a big government contract. Eighty thousand Blackberry devices will be linked to the Pentagon’s management system at the end of January. That secures the company’s position as the longtime supplier of government phones. Shares popped more than nine percent to $9.93.
TD Ameritrade posted an earnings beat and said profits rose about 31 percent from last year. The company says the increase is because more customers felt confident about trading in the stock market, improving commissions and transaction fees. Shares rose about 4.5 percent to $33.85.
Shares of FireEye took a hit after JP Morgan downgraded the cyber security firm to “neutral” from “overweight.” The firm said the company is a disruptive one, but it slashed its rating because of valuation concerns. Shares tumbled more than 5.5 percent to $69.44.
Target was downgraded and its price target was slashed by Cowen. The analyst is expecting Target to indefinitely suspend its buyback, which she said is a “key support for the stock.” Shares slid to a 52-week low, down nearly two percent to $59.20.
Both Pacific Crest and Credit Suisse upped their price target on Google to the highest amount yet, $1,450. Credit Suisse’s analyst cited the company’s continued growth in ad revenue and Pacific Crest said it expects strong fourth quarter earnings. That sent shares of the search giant up one percent to $1,163.70.