Market Focus

Mondelez

Mondelez and D.E. Master Blenders are joining forces to create one of the world’s biggest coffee companies. The two companies will combine coffee assets creating a business that’s expected to have annual revenue of more than $7 billion a year. The move is part of a new restructuring plan that Mondelez announced, so it can cut costs and focus on its snack foods units like its Oreo cookies and Ritz Crackers brands. It earnings also topped estimates. Shares popped eight percent to $38.10.

DirecTV 

Shares of DirecTV surged on reports that it’s working with advisors including Goldman Sachs about a possible deal with AT&T. Reportedly AT&T approached the satellite TV provider last week about combining forces. Shares jumped about eight percent to $88.25.

Humana

Humana posted earnings that easily beat estimates. The insurer reported growing membership in its medicare advantage and prescription plans. Its first quarter profit did fall more than 20 percent because last year’s results were helped by a settlement, but Humana’s customer growth outlook was strong. Shares rose almost nine percent to $119.05.

Phillips 66

Shares of Phillips 66 got a lift after the company hiked its dividend payment by 28 percent. The quarterly payout of 50 cents a share will be paid to the oil refiner’s shareholder in June. The stock was up slightly to $85.03.

Encana & Freeport McMoRan 

Freeport McMoRan is selling its Eagle Ford shale assets in Texas for $3.1 billion. The buyer is Encana, a Canadian energy company. The deal will almost double Encana’s oil output. Freeport is trying to sell energy assets to trim its debt. Shares of Encana rose more than four percent to $23.57. Freeport was up a fraction to $33.99.

Tesla

Tesla’s earnings topped expectations, but apparently investors focused on the company’s warning that expenses will rise. The electric car maker produced more cars than it said it would and made more money, after separating out accounting items, but the costs of new model rollouts, international expansions and a new battery factory tossed ice water on an otherwise favorable report. The stock was down more than seven percent after the close. During the regular session, shares were down about three percent to $201.35.

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