Midday movers: Facebook, Lowes, American Eagle
Stocks rebound slightly from last week's dismal performance.
Facebook (FB) shares fell below their $38 issue price in premarket trading and continued to slide as much as 13.7% Monday before stabilizing near $33. Near noon, shares were down $4.49, or 11.59%, to $33.74.
Yahoo (YHOO) reached a deal for a plan to sell its 40% stake in Alibaba, including an initial sale of 20% of Alibaba back to the company for $7.1 billion. Yahoo said it intends to return substantially all of the after-tax cash proceeds to shareholders from the deal and did not finalize the form of the return of capital but did increase its share buyback authorization by $5 billion. However, Yahoo shares only moved up about 0.3% on the news.
Shares of Lowes (LOW) slid almost 10% in spite of sales and profits that beat estimates, as the company's yearly earnings guidance came in below consensus.
Among other companies reporting earnings, Krispy Kreme (KKD) advanced while Campbell Soup (CPB) declined. DaVita (DVA) agreed to purchase HealthCare Partners for $4.42 billion, which investors applauded by driving shares up more than 4%.
Among the notable gainers Monday are Cooper Industries (CBE), up nearly 27%, after agreeing to be acquired by Eaton Corporation (ETN) in a cash and stock deal valued at $72 per share, representing a premium of 29% to Cooper's closing price on Friday, and American Eagle (AEO), up more than 10%, following an upgrade to "buy" at Brean Murray ahead of Wednesday's earnings report and after the company announced it plans to eliminate children's brand 77kids and its CFO stepped down.
Noteworthy losers include Renren (RENN), down almost 3%, as it was dragged down in concert with the steep decline seen in Facebook, and Sturm, Ruger (RGR), down about 6%, after being initiated with a "sell" rating at Off Wall Street Research.
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The offering could become the second-biggest this year if underwriters exercise an option to buy more shares.
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