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Stocks in the green again, Dow inches towards 17,000

Hot Stock Minute

The Dow (^DJI) ended the day at 16,943.10. The Nasdaq (^IXIC) closed at 4,336.24. And the S&P 500 (^GSPC) ended the day 1,951.27.

The economic calendar didn’t have much to offer on Monday, but investors had plenty of M&A action to focus on.

Tyson Foods (TSN) declared victory in the bidding war for Hillshire Brands (HSH). The meat producer will buy the maker of Jimmy Dean sausages for $63 a share, topping Pilgrim’s Pride (PPC) bid of $55 dollars a share.  Hillshire ended the day up 5.33% on the news, while Tyson closed down 6.56% and Pilgrim’s Pride was down 6.70% on the day.

Idenix Pharmaceuticals (IDIX) closed up a staggering 229.05% after Merck said it would buy the biotech company for nearly $4 billion dollars. The deal will boost Merck’s pipeline of hepatitis C drugs.

Hittite Microwave (HITT) closed up 28.63%. Chip maker Analog Devices (ADI) will buy the company in a deal valued at about $2.5 billion. Analog Devices ended the day up 4.97% on the news.

Family Dollar (FDO) shares closed up 13.37%. The company adopted a so-called one-year poison pill. The plan limits investors from acquiring more than 10% of the company after billionaire activist investor Carl Icahn took a 9.4% stake in the discount retailer. Dollar General (DG) shares ended the day up 7.35% amid speculation that Icahn may push for a merger with Family Dollar.

Apple’s (AAPL)  7-for-1-stock split went into effect today - its first stock split since 2005. Apple shares closed up 1.60%.

McDonald’s (MCD) posted a small rise in global same-store sales in May, thanks to strong demand from China. However, the fast-food chain’s home market continues to be a challenge. U.S. same-store sales fell 1% last month, marking the seventh consecutive month of declines.

On Tuesday, investors will get a look at the National Federation of Independent Business Small Business Optimism Index at 7:30 a.m. Eastern, and wholesale inventories at 10 a.m. Eastern. 

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