Midday movers: Best Buy, Lowe's, Coventry
Stocks pare earlier losses and drift in a narrow range.
Best Buy (BBY) named Hubert Joly, formerly the top executive at privately owned hotel and restaurant operator Carlson Companies, as its new CEO. Shares slid 7% though, as the company also announced that its Board of Directors offered an opportunity to founder Richard Schulze to conduct due diligence and pursue his interest to acquire the company, but Schulze declined. Schulze responded that the Board initially proposed an 18-month standstill agreement, which he called "completely unacceptable"
Shares of Lowe's (LOW) slumped over 6% after its quarterly earnings and yearly guidance fell short of Wall Street's expectations.
Among the notable gainers Monday was Coventry Health Care (CVH), which rose about 19% after it agreed to be acquired by Aetna (AET) in a cash and stock deal valued at $7.3 billion, including the assumption of Coventry debt. In a continuation of a recent trend, the acquirer Aetna also saw its stock jump nearly 4% on the news.
Among the noteworthy losers were ZAGG (ZAGG), down almost 12%, after the stock was downgraded at Janney Capital following the resignation of the company's CEO, and Centene Corp. (CNC), down 5%, following peer Coventry's acquisition announcement.
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