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.
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.