Markets are looking like they're ready to rally. They're poised to open sharply higher now that the holiday weekend is behind us. Stocks closed down on Friday, ending a streak of weekly gains that stretched more than a month. But now, the indexes look like they're back in the green. Yahoo! Finance Senior Columnist has more in the video above.
It's more than a valiant attempt. Canadian skin-care company Valeant (VRX) is taking over Bausch and Lomb. Valeant has agreed to pay $8.7 billion dollars to Bausch's current owners, who are an investor group led by Warburg Pincus. The deal extends a flurry of activity in the health care industry as companies struggle to increase profits. Bausch and Lomb is a leader in the $30-billion market for eye-care products and equipment. Valeant shares jumped 13% on Friday as news of the purchase started to break. It's up another 8% in early trading.
A group of Club Med's top shareholders is trying to take over the resort company with Chinese-backed investors reportedly leading the way. They've made a bid that values the vacation company around $700 or $800-milion. The alliance is looking to stage a company turnaround by placing new emphasis on the growing Chinese tourism market. Club Med was a pioneer in all-inclusive vacation packages.
BuzzFeed has a new way to satisfy its users' appetites. The popular website will announce a partnership today with CNN and YouTube to create an online video channel. For now, the channel aims to produce about three videos a week. But under the agreement BuzzFeed will have access to CNN's massive video archive. Earlier this month, BuzzFeed launched a site just for business news.
We kick off the shortened week with Tiffany (TIF), which is up 5% this morning after reporting quarterly earnings. The company easily beat estimates coming in with 65-cents a share on almost $900-milion in revenue. Analysts were expecting 52-cents a share. There had been concerns that the drop in the yen might hurt Tiffany's since Japan is one of its larger markets. But that didn't impact the company much. Shares of Tiffany are up nearly 30% year-to-date not counting this morning's climb.
Next up is Jos. A. Bank (JOSB), which will be reporting its earnings sometime today. The company is expected to post earnings of 29-cents a share down more than 40% from a year ago on slightly lower revenue. The clothier did in fact recently lower its outlook significantly citing lower selling prices and higher costs. Jos. A. Bank stock has underperformed year-to-date, up about 5%. It's down about 5% since this time a year ago.
Now we look at Omthera (OMTH), a small pharmaceutical company which is now trading up more than 97% The stock closed at about $6.75 on Friday, but this morning Astra Zeneca (AZN) announced it's buying the company for $12.70 a share. Omthera is testing a drug to treat patients with very high triglycerides. The medication is derived from fish oils and considered a complement to Astra Zeneca's existing portfolio which includes the cholesterol drug Crestor. Omthera just went public back on April 11th. Prior to today it had been down about 9%.
Finally, there's United Natural Foods (UNFI) which is expected to post earnings of 64-cents a share when it a quarterly report this afternoon. That would be an increase of a nickel from a year ago. United Natural Foods distributes its products to Whole Foods Market and other national supermarket chains. It specializes in organic foods. The stock has bounced around a bit this year, but is almost exactly where it started back in January.
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- Bausch and Lomb