Reynolds American & Lorillard
Reynolds American is buying its smaller rival Lorillard in a merger than will combine two of the country’s largest tobacco producers. The combination will give Reynolds a dominant position in one area where the cigarettes. But it will sell its Blu e-cigarette brand to Britain’s Imperial Tobacco Group. Shares of Reynolds dropped on the news, down about seven percent to $58.84. Lorillard also fell, tumbling more than ten percent to $60.17.
Rockwood & Albemarle
Another deal to tell you about. Specialty chemicals company Albemarle is buying Rockwood Holdings for about $6 billion in cash and stock. The move is an effort by Albemarle to tap into the demand for lithium products used in mobile phones and car batteries. Shares of Rockwood popped almost ten percent to $83.14 Albemarle fell 3.5 percent to $70.03.
Goldman Sachs posted earnings that trumped estimates. Its quarterly profit rose five percent, thanks to strong performance in its investment banking and lending units. Also its fixed income trading fell less than Wall Street expected. Investors liked the news, shares rose more than one percent t $169.17.
J.P. Morgan shares also rallied on better than expected quarterly results. Even though the bank’s earnings and revenue declined from last year, trading revenue held up better than analyst forecasts. The stock jumped 3.5 percent to $58.27.
After the bell railroad operator CSX reported a rise in second quarter earnings as it benefited from broad volume growth. Earnings and revenue were basically in line with estimates and the company affirmed its outlook for the year. The stock was initially down a little after the announcement. During the regular session shares were up a fraction to $31.15.
GoPro saw its shares pop after a bullish analyst note. JMP Securities began coverage of the wearable camera maker with an outperform rating and a $60 price target saying the company has established itself as a durable multi-media active lifestyle brand. That sent the stock up 13 percent to $41.63.
It was the opposite story for Michael Kors. The stock was down for the second day in a row as Sterne Agee and Barclays reduced their price targets for the high-end retailer. Both firms cited increased promotional activity that could put pressure on margins. Shares tumbled more than seven percent to $79.44.
Johnson & Johnson
Johnson & Johnson reported quarterly revenue and earnings easily topped Wall Street’s estimates, fueled by strong sales of its Hepatitis C treatment. The company cautioned that the pill will lose steam later this year as newer rivals are coming to the market. Still shares were about two percent lower to $103.28.