Pfizer’s shares climbed after positive drug study news. An experimental breast cancer drug met study goals in a mid-stage trial. The treatment is considered one of Pfizer’s most valuable products in development. Some analysts believe the drug could claim annual sales of more than $5 billion if approved. The stock rose a fraction to $30.60.
AT&T’s move to make customers happy, left investors disappointed. The number two U.S. phone provider announced a 20 percent price cut for customers who share large data plans. The move is an attempt to gain ground it lost to Verizon and T-Mobile. Many on Wall Street are expecting Verizon to follow’s AT&T’s lead. Shares of both wireless carriers were down. AT&T’s shares tumbled four percent to $31.95, shares of Verizon also fell three percent to $46.41.
After the market close, Yum Brands, the parent of KFC and Pizza Hut, reported earnings that came in higher than estimates, but revenue missed. Overall comparable sales were down, which analysts didn’t expect and they fell four percent in China, Yum’s top market. Shares were up initially after hours. In the regular session Yum’s shares were down by 1.5 percent to $66.16.
Herbalife, the nutritional supplements company, is estimating fourth-quarter profit and sales will come in above market forecasts. The company also upped its buyback program to $1.5 billion. Still, shares were off on a down day. The stock surged towards the end of the day, up seven percent to $69.02.
Jos. A. Bank, Eddie Bauer, Men’s Wearhouse
Jos. A. Bank has rejected Men’s Wearhouse’s latest takeover offer, again. Bank said the $1.5 billion bid substantially undervalues its company. At the same time, there are reports that Bank is in talks to buy retailer Eddie Bauer, which is owned by private equity firm Golden Gate Capital. Shares of both Jos. A. Bank and Men’s Wearhouse tumbled today, Bank fell five percent to $53.39. Men’s Wearhouse plunged almost eight percent to $44.31.
L Brands, the parent company of Victoria’s Secret and Bath and Body Works, raised its annual dividend by 13 percent and declared a special dividend of $1 per share. Still, the stock was down nearly three percent to $50.87.