Anadarko Surges as Takeover Rumors Turn Investors' Heads
Anadarko Surges as Takeover Rumors Turn Investors' Heads
Stocks Post May Gain; Humana Considers Sale
Unlock your personal NFL Now stream by signing in to NFL.com
Shares of Anadarko Petroleum jumped on Wednesday making it TheStreet's Move of the Day. The exploration and production company gained after Website theflyonthewall.com reported speculation that Anadarko is a likely takeover target in the sector. Trade volume has spiked the last two days, surging on Tuesday about 100% from Monday's trade volume, and jumping 145% from yesterday. Company spokesperson John Christiansen told me in an email: "We do not comment on rumors." Shares climbed 4.2 percent to $108.32, making it on the third-best performer in the S&P 500. TheStreet's Joe Deaux reports.
Stocks were down for the day but not for the month. In May, the S&P added more than 1% and the Nasdaq was up nearly 3%. Altera (ALTR) was among the best performers on the Nasdaq after reports said Intel (INTC) was nearing a deal to buy the chipmaker. Oil closed the month above $60 a barrel, its highest level in a week. A sad day for American Express (AXP) as President Ed Gilligan passed away after 35 years at the company. Gilligan died after becoming suddenly ill on flight to New York. Humana (HUM) was an interesting mover, spiking 20% in the afternoon session on reports the company is considering putting itself up for sale.
The biggest threat to the casino business could be millennials, according to one expert. ‘Millennials seem like they are a little bit less interested in gambling in the casinos,’ said Alex Bumazhny, Director at Fitch Ratings. ‘They’ll still go to casinos quite a bit but they spend their money on food, beverages, nightclubs and entertainment and less so on the slot machines.’ Bumazhny said Millennials will play table games like poker, but those games are less profitable for casinos. The big problem for the casinos is that Millennials prefer casino-themed social games and daily fantasy sports. Bumazhny said the casino industry is acknowledging this challenge. He pointed out that Caesars Entertainment (CZR) has purchased social gaming businesses and International Game Technology (IGT), which makes slot machines, and bought the social gaming company Double Down Interactive a few years ago. IGT and Caesars Entertainment generated $80 million and $167 million in the first-quarter at their respective social gaming divisions.
We've entered the Second Gilded Age, but don't expect it to last very long, according to a recent study by UBS (UBS) and PricewaterhouseCoopers. Billionaires today have new ways to tap into philanthropy and face increased societal pressures against inheritance. The report found 917 'self-made' billionaires who have created a combined fortune of $3.6 trillion, primarily by advancing the Internet in various ways, revolutionizing finance and asset management, and participating industrial and consumer. The report covers 1,300 billionaires in total over a 19-year period, and surveys the 14 markets most familiar to the super-rich, which account for three quarters of all billionaires. The findings suggest the Gilded Age could soon be at an end, as many are aging and looking for ways to parcel out their fortunes, with a surprising number turning to philanthropy. UBS and PricewaterhouseCoopers predict two main factors will lead to a thinning of such massive fortunes: punitive taxation brought on by popular discontent with historic inequality and a tendency for inherited health to be squandered.
Amazon (AMZN) plans to add its own line of branded food and household products. Milk, Cereal, and Soup would be among the items to carry Amazon's Elements label. The Wall Street Journal says Amazon's planned expansion in the private label business mirrors a more traditional retail model where name brand products are sold alongside store owned goods. Intel (INTC) is reportedly near a deal to buy Altera (ALTR) for $15 billion. The New York Post cites a source close to the negotiations who says Intel could pay as much as $54 a share for Altera, which is a 15% premium over its closing price Thursday. Big Lots (BIG), is the last of the major retailers to report earnings. Revenue fell short of expectations. Big Lots did announce a dividend of 19 cents a share.
For Friday, May 29 TheStreet highlights two notable companies reporting their quarterly financial results as well as a few economic data to watch on Wall Street. On the notable earnings front, keep an eye on Big Lots Inc (BIG) and Genesco Inc (GCO). Both companies are scheduled to release their quarterly financial results before the market opens early Friday morning. Nashville-based Genesco is a retailer and wholesaler of footwear, apparel and accessories that operates in five segments. Discount retailer Big Lots is the last of the mega retailers to report. For the first quarter, Wall Street is expecting Big Lots to post a profit of 59 cents per share on revenue of $1.28 billion. The Ohio-based company sells a wide variety of merchandise including toys, furniture, clothing, and housewares. The closeout retailer operates roughly 1,495 stores in 48 states throughout the U.S. The company operates in seven merchandise categories. TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio, says he's keeping an eye on Big Lots earnings, saying the company has been 'rumored to be in talks.' He added that the company is worth 'a lot more because it's in the sweet spot.' On the economic calendar we note the preliminary first quarter GDP, the ISM Chicago survey, and the consumer sentiment index to wrap up the week. GDP, or gross domestic product, is the broadest measure of aggregate economic activity and encompasses every sector of the economy. First-quarter GDP is expected to move from an initial reading of plus 0.2% to a contractionary negative 0.8%. For the latest financial news and updates from Wall Street, check back on TheStreet.com throughout the day. TheStreet's Kurumi Fukushima reports in New York.
This is the largest private real estate project in U.S. history
Jobs report: Is Street too optimistic?
As profits improve, new Airline ETF takes-off
How OPEC could lose the oil wars
How Michelle Phan went from food stamps to the most popular woman on YouTube
T-Mobile Company Summary Apr 16, 2015
GDP turns negative in Q1; Game Stop's high score; Amazon's food line
JPMorgan to cut more than 5,000 jobs: WSJ
GDP shows economy shrank in the first quarter
Amazon may be planning to roll out its own private-label brand: WSJ
Investors eye China/jobs; Semiconductor megamerger; Visa's FIFA threat
Abercrombie & Fitch jumps; Costco falls; Broadcom & Avago merge