STOCK MARKET NEWS: Lyft left in the cold, Yahoo slashes workforce, PayPal boss retiring

AMC Theater, Marlton, N.J.

On February 7, 2023, AMC Entertainment Holdings issued 106,595,106 AMC Preferred Equity Units (APEs) for an aggregate purchase price of $75.1 million to Antara Capital, the company said in a regulatory filing.

The world's largest movie theater chain simultaneously bought back $100 million of its 10%/12% Cash/PIK Toggle Second Lien Notes due 2026 in exchange for 91,026,191 APEs and cash equal to the accrued and unpaid interest on the exchange notes.

AMC intends to use the net proceeds from the sale primarily to further deleverage and/or bolster liquidity. 

Chief Executive Officer of Lions Gate Entertainment, Jon Feltheimer (3rd L), claps with actors from the show Mad Men (L-R) John Slattery, Christina Hendricks, Jon Hamm, January Jones, and Kiernan Shipka with the show's creator Matthew Weiner (C) while visiting the New York Stock Exchange to ring the opening bell in New York, Mar. 21, 2012. (Reuters/Lucas Jackson)

Lions Gate Entertainment Corp. (LGF.A) on Thursday reported fiscal third-quarter net income of $16.6 million, after reporting a loss in the same period a year earlier.

On a per-share basis, the Santa Monica, California-based company said it had net income of 7 cents. Earnings, adjusted for one-time gains and costs, came to 26 cents per share.

The results exceeded Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for a loss of 2 cents per share.

The motion picture producer and distributor posted revenue of $1 billion in the period, also exceeding Street forecasts. Five analysts surveyed by Zacks expected $865.3 million.

Mesa Air Group Inc. on Thursday reported a loss of $9.1 million in its fiscal first quarter.

On a per-share basis, the Phoenix-based company said it had a loss of 25 cents. Losses, adjusted for non-recurring costs, came to 12 cents per share.

The results beat Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for a loss of 52 cents per share.

The regional airline posted revenue of $147.2 million in the period.

Yahoo Mail logo on a smartphone's screen in front of a code in this illustration taken in Oct. 6, 2016. (Reuters/Dado Ruvic)

Yahoo said on Thursday it plans to lay off more than 20% of its total workforce as part of a major restructuring of its ad tech division.

The cuts will impact nearly 50% of Yahoo's ad tech employees by the end of this year, including nearly 1,000 employees this week, the company said.

Yahoo, which is owned by private equity firm Apollo Global Management since a $5 billion buyout in 2021, added that the move would enable the company to narrow its focus and investment on its flagship ad business called DSP, or demand-side platform.

This comes as many advertisers have pared back their marketing budgets in response to record-high inflation rates and continued uncertainty about a recession.

A raft of U.S. companies from Goldman Sachs Group Inc to Alphabet Inc have also laid off thousands this year to ride out a demand downturn wrought by high inflation and rising interest rates.

Axios first reported the news of the layoffs at Yahoo.

PayPal logo is seen on a smartphone in front of the same logo displayed in this illustration taken Sept. 8, 2021. (Reuters/Dado Ruvic/Illustration)

PayPal Holdings Inc forecast full-year profit above Wall Street estimates on Thursday, as the payment firm's customers undeterred by decades-high inflation continue to spend, and said Chief Executive Dan Schulman will retire at the end of the year.

Shares in the payments heavyweight rose 6% in extended trading after results.

PayPal said it expects full-year adjusted profit of roughly $4.87 on a per share basis. Analysts on average had expected $4.75 per share, according to Refinitiv IBES data.

The company's upbeat forecast also comes alongside its previously announced commitment of lowering expenses in the backdrop of its key e-commerce segment feeling the pinch of a slowdown.

Last week, PayPal said it will lay off 7% of its workforce, or about 2,000 employees, joining a string of fintech firms which have slashed jobs to cut costs in an increasingly tumultuous operating environment.

Its revenue rose 9% on an FX-neutral basis to $7.4 billion in the fourth quarter ended Dec. 31.PayPal earned a profit of $1.24 per share on an adjusted basis in the quarter, versus $1.11 per share in the year-ago quarter.

Lyft logo is seen in this illustration taken June 27, 2022. (Reuters/Dado Ruvic/Illustration)

Lyft Inc on Thursday forecast current-quarter revenue below Wall Street estimates, blaming extremely cold weather in some of its major markets and lower prices, especially during peak hours, sending its shares down 23% in extended trading.

Lyft forecast first-quarter revenue of about $975 million, which fell below analyst estimates of $1.09 billion, according to Refinitiv data.

Its forecast for first-quarter adjusted earnings before interest, taxes depreciation and amortization (EBITDA), a key measure of profitability that strips out some costs, was between $5 million and $15 million.

For the fourth quarter, Lyft reported an adjusted EBITDA of $126.7 million, excluding $375 million it had set aside for increasing insurance reserves. Analysts had forecast $91.01 million.

Active riders rose 8.7% increase to 20.36 million for the fourth quarter, Lyft said. Analysts were expecting 20.30 million, according to FactSet estimates.

Rideshare was "really back ... we're happy with the current marketplace conditions," Zimmer said.

Revenue rose 21% to $1.18 billion, slightly above the average estimate of $1.16 billion.

POLITICS

Southwest exec grilled on Christmas debacle, as pilots union says airline 'failed to listen'

Southwest Airlines COO Andrew Watterson faced lawmakers at a hearing Thursday, where Southwest Airlines Pilots Association President Cpt. Casey Murray testified that company leadership "failed to listen" to frontline employees ahead of last December's operational meltdown.

Southwest Airlines on Thursday faced harsh criticism from U.S. senators at a hearing investigating the airline's meltdown that disrupted travel plans for 2 million customers, with one lawmaker calling the situation an "unmitigated disaster.

"Senators recounted to Southwest a litany of horrendous travel stories: People missing funerals and holiday gatherings, passengers forced to drive for 17 or more hours across the country after flights were canceled and cancer patients who could not get treatment.

Democratic Senator Jacky Rosen called it an "unmitigated disaster" that had a "devastating impact on families."

Ted Cruz, the top Republican on the Senate Commerce Committee, called the cancellation of more than 16,000 flights "an epic screwup" but said he was confident Southwest executives "are committed to doing everything possible to prevent its recurrence."

Southwest Chief Operating Officer Andrew Watterson told reporters that the airline has already paid hundreds of millions of dollars in compensation and reimbursements for expenses and will cut 2022 bonuses to executives when they are awarded in March.

MARKETS

Disney proxy fight over for Iger, Nelson Peltz claims victory

Activist investor Nelson Peltz of the Trian Group has announced the of his proxy fight with the Walt Disney Co and CEO bob Iger after the entertainment company unveiled restructuring plan that included cost cuts and 7,000 layoffs.

Activist investor Nelson Peltz on Thursday ended his quest for a board seat at Walt Disney Co after Chief Executive Bob Iger laid out plans to fix the home of Mickey Mouse, cheering investors.

"The proxy fight is over. This is a win for all shareholders," a spokesperson for Peltz's Trian Fund Management said.

The decision came only hours after Disney reported earnings that topped Wall Street expectations and Iger outlined a corporate restructuring that included 7,000 job cuts and addressed many of Peltz's criticisms.

After weeks of trading increasingly personal barbs, Peltz extended an olive branch to Disney saying he congratulated the company and its CEO on new "operating initiatives" that dovetail with his thinking.Disney issued a statement applauding Peltz's decision to end the board challenge. "We have tremendous faith in Bob Iger’s leadership and the transformative vision for Disney’s future he set forth yesterday," the board said.

MARKETS

Pepsi price hikes drive profits

PepsiCo reported big earnings on Thursday to beat analysts’ predictions after inflation forced price hikes in 2022 and helped increase fourth-quarter profit and revenue.

PepsiCo reported better-than-expected sales in the fourth quarter after hiking prices for its drinks and snacks, but it warned that consumers may be less willing to accept those increases as this year progresses.

Revenue rose more than 10% to $28 billion. That was better than the $26.8 billion Wall Street had forecast, according to analysts polled by FactSet.

Pepsi raised prices 16% in the October-December period __ and 14% overall in 2022 __ as it battled double-digit percentage cost increases for ingredients like cooking oil, potatoes and seasonings. The price increases boosted results; Frito-Lay snacks and Quaker products booked double-digit revenue gains in North America even though sales volumes were down 1% and 3%, respectively.

Pepsi’s net income fell 60% to $535 million, largely due to a $1.5 billion impairment charge for its SodaStream brand and other assets.

Open House sign in front of home for sale in Cherry Hill, NjJ., Nov. 5, 2022

The average long-term U.S. mortgage rate ticked up slightly this week after four weeks of declines, a possible sign of stability that could draw in home shoppers with spring buying season weeks away.

REAL-ESTATE

Mortgage rates tick up after weeks of decline

The Federal Reserve's continuing fight to reign in government spending induced inflation, is making all forms of borrower more expensive, especially mortgages.

Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate inched up to 6.12% this week from 6.09% last week. The average rate a year ago was 3.69%.

The average long-term rate reached a two-decade high of 7.08% in the fall as the Federal Reserve continued to raise its key lending rate in a bid to cool the economy and and bring down stubborn, four-decade high inflation.

Donald Trump's Facebook page (screen capture)

Meta Platforms Inc has restored former U.S. President Donald Trump's access to Facebook and Instagram, Meta spokesperson Andy Stone confirmed on Thursday, following a two-year suspension after the deadly Capitol Hill riot on Jan. 6, 2021.

Meta in January said it would lift Trump's suspension "in the coming weeks" and would institute heightened penalties of a suspension between one month and two years if the former president violated its content policies again.

Trump now regains access to key platforms for voter outreach and political fundraising ahead of another run for the White House in 2024. He had 23 million followers on Instagram and 34 million on Facebook as of January.

(Courtney Crow/New York Stock Exchange via AP)

The major U.S. stock averages are falling after starting the session in positive territory.

The Dow, S&P and Nasdaq are all trading beneath the redline as commodities like oil and gold slip in afternoon trading, with the yellow metal down roughly 0.80% to $1,875.60 an ounce and oil slipping almost 1.26% to $77.48 a barrel.

Meanwhile, blue-chip stock leading the Dow's early 200 point rally are dropping as shares of Nike and Boeing fall into red territory. 

Medical device maker Baxter International on Thursday forecast 2023 profit well below Wall Street estimates and said it would cut up to 5% of its global workforce.

Medical device makers are still grappling with supply-chain shortages that began during the pandemic, with rising costs of raw materials, labor and transportation piling on more pressure.

Baxter, which is in the process of spinning off its kidney care units, is also exploring alternatives for its biopharma solutions business, including a potential sale.

The company revealed plans to consolidate its operations into four units in the coming months, adding that it will begin financial reporting with its new segments during the second half of 2023.

Baxter expects to save over $300 million through its cost reduction plans, including the layoffs, in 2023.

The company said it expects to earn profit in the range of $2.75 per share and $2.95 per share, below analysts' expectations of $3.56, according to Refinitiv.

As of Dec.31, Baxter had about 60,000 employees globally, according to its latest annual regulatory filing. 

Ben & Jerry's, a brand of Unilever, in a store in Manhattan, New York City, Mar. 24, 2022. (Reuters/Andrew Kelly)

Unilever Plc said on Thursday it would continue to raise prices for its detergents, soaps and packaged food to offset rising input costs, and ease up those hikes in the second half of 2023.

The London-based company, which makes products like Fairy washing-up liquid, Dove soaps, savory food spread Marmite, and Ben & Jerry's ice cream, expects cost inflation to continue in 2023, forecasting net material inflation in the first half of around 1.5 billion euros ($1.6 billion).

Price increases would continue in the second half "but it will be a lower rates of increases ... we are probably past peak inflation, but not yet past peak pricing," Pitkethly said.

Underlying price growth for the fourth quarter was a record 13.3% while underlying volumes fell 3.6%.Underlying sales at Unilever rose 9.2% in the fourth quarter, beating a company-provided analyst estimate of an 8.2% increase.

“Unilever have a playbook for inflation. A business as broad-based as they are is always facing inflationary pressures somewhere in the world, so they know the drill,” said Steve Clayton, head of equity funds, Hargreaves Lansdown. “Some analysts may want to trim their margin forecasts a touch, but the underlying message here is that Unilever is coping just fine against a challenging trading environment.”

Reuters contributed to this report.

Switzerland's national flag flies above a logo of Swiss bank Credit Suisse in front of a branch office in Bern, Switzerland, Nov. 29, 2022. (Reuters/Arnd Wiegmann)

Credit Suisse Group has reported its biggest annual loss since the 2008 global financial crisis after rattled clients pulled billions from the bank, and it warned that a further "substantial" loss would come this year.

Battered by one scandal after another, the bank saw a sharp acceleration in withdrawals in the fourth quarter, with outflows of more than 110 billion Swiss francs ($120 billion), although it said the picture has been improving.

The results, described as "catastrophic" by Ethos, which represents some Credit Suisse shareholders, sent the bank's shares down as much as 10%.

Switzerland's second-biggest bank has begun a major overhaul of its business cutting costs and jobs to revive its fortunes, including creating a separate business for its investment bank under the CS First Boston brand. The bank successfully completed a 4 billion Swiss franc fundraising in December.

Chief Executive Ulrich Koerner said: "We have a clear plan to create a new Credit Suisse and intend to continue to deliver on our three-year strategic transformation."

"We have done a prudent and also hopefully a somewhat careful planning," he told reporters.

But analysts were alarmed by the scale of losses and outflows.

Credit Suisse's "operational performance was even worse than feared and the level of outflows quite staggering," Thomas Hallett, analyst at Keefe, Bruyette & Woods, said in a note.

"With heavy losses to continue in 2023, we expect to see another wave of downgrades and see no reason to own the shares."

For the fourth quarter, the bank made a net loss of 1.39 billion francs. That brought its total net loss in 2022 to 7.29 billion francs, marking its second straight year in the red.

People enter a Hilton hotel in Manhattan, New York City, Mar. 23, 2022. (Reuters/Andrew Kelly)

Hilton Worldwide Holdings Inc on Thursday missed its room growth expectations for 2022, pressured by a volatile COVID-19 environment in China, a key tourism market where hotel operators have struggled to expand last year.

Hilton, which owns brands including Waldorf Astoria Hotels & Resorts, reported a net unit growth of 4.7% in 2022, below its earlier forecast of about 5% growth.

China's strict COVID-19 curbs, which have now been lifted, had halted construction of some luxury properties and impeded travel to a key global tourism markets.

Hilton reported robust results for the fourth quarter ended Dec. 31, aided by strong travel demand despite mounting economic worries.

For the quarter, Hilton said revenue per available room, or RevPAR — a key metric for investors — rose 24.8% on a currency neutral basis from a year earlier.

Excluding items, Hilton earned $1.59 per share, beating analyst expectations of $1.22 per share. Its revenues rose about 33% to $2.44 billion, compared with $2.38 billion, according to Refinitiv data.

The company forecast an adjusted profit per share between $5.42 and $5.68 per share for 2023. Analysts polled by Refinitiv expect a 2023 profit of $5.60 per share.

Hilton expects annual net unit growth between 5.0% and 5.5%. Capital returns are projected to be between $1.7 billion and $2.1 billion, compared with $1.7 billion last year.

Handbag is seen in a Kate Spade store, owned by Tapestry, Inc., in Manhattan, N.Y., Nov. 19, 2021. (Reuters/Andrew Kelly)

Tapestry Inc on Thursday raised its annual profit forecast after topping Wall Street estimates for quarterly earnings, as Gen Z and millennial shoppers snapped up its Coach handbags, sending its shares up over 9% in premarket trading.

Luxury peer Ralph Lauren Corp also beat expectations on strong demand from younger affluent shoppers.

New York-based Tapestry, which also owns the Stuart Weitzman brand, said nearly half of the about 2.6 million new customers it added in North America were Gen Z and millennials.

Meanwhile, Ralph Lauren said its brands gained market share in North America, even as its wholesale revenue decreased 2%. That was offset by a 2% increase in comparable sales at its own stores in the region.

Net revenue at Ralph Lauren rose 1% to $1.83 billion in the third quarter ended Dec. 31, while analysts had expected $1.76 billion, according to Refinitiv IBES data.

Tapestry forecast fiscal 2023 earnings of $3.70 to $3.75 per share, compared with its prior estimate of $3.60 to $3.70.It reported a profit of $1.36 per share in the second quarter, topping estimates of $1.27.

(Courtney Crow/New York Stock Exchange via AP)

Silver, like other commodities including gold and oil, is a haven for traders during times of economic downturn, and particularly inflation, where the strength of the U.S. dollar is weakened, and investors begin looking for material wealth.

Already, the price of silver has reached roughly $22 per ounce in 2023 and is up approximately 9% the last three months.

A Kitco News' online survey showed investors could see silver jump more than 50% this year to reach $38 an ounce.

While the volatility of silver prices can be two to three times greater than that of gold on a given day, silver’s increasing applications in industry could begin closing the gap on the yellow metal in 2023 , particularly as the automotive sector makes greater shifts to electric, and alternate forms of energy are harnessed through solar.

Often considered recession or inflation-proof, silver outpaced the three major U.S. stock averages in 2022. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all finished lower last year.

Photo by Leonardo Munoz/VIEWpress

Despite a January jobs report where over a half million jobs were added to the U.S. economy, Jobless claims reached 196,000 for the week ending on Feb. 4, posting an increase of 13,000 from the previous week's unrevised level of 183,000, according to the Department of Labor.

The four-week moving average was 189,250, a decrease of 2,500 from the previous week's unrevised average of 191,750.

The advance seasonally adjusted insured unemployment rate peaked at 1.2% for the week ending Jan. 28, notching an increase of 0.1 percentage point from the previous week's unrevised rate.

Meanwhile, the advance number for seasonally adjusted insured unemployment during the week ending Jan. 28, was 1,688,000, an increase of 38,000 from the previous week's revised level.

Using unadjusted data, the advance number of actual initial claims under state programs totaled 234,654 in the week ending Feb. 4, an increase of 9,628, or 4.3%, from the previous week, while the advance unadjusted insured unemployment rate hit 1.3% during the week ending Jan. 28, unchanged from the prior week.

The advance unadjusted level of insured unemployment in state programs totaled 1,934,854, an increase of 23,663, or 1.2%, from the preceding week.

MARKETS

Disney to slash 7,000 jobs

Disney announced Wednesday it will lay off some 7,000 workers as part of a restructuring plan aimed at saving the company billions of dollars, becoming the latest company to cut jobs.

Walt Disney shares are gaining more than 6% in premarket trading after the company announced a sweeping corporate restructuring that will result in 7,000 people losing their jobs as part of an effort to achieve $5.5 billion in cost savings.

The layoffs represent an estimated 3.6% of Disney's global workforce.

The media company, which is under pressure to turn a profit from its global streaming business, said it would reorganize into three segments: an entertainment unit that encompasses film, television and streaming; a sports-focused ESPN unit; and Disney parks, experiences and products.

Walt Disney Co's quarterly earnings on Wednesday topped Wall Street estimates as visitors packed the company's theme parks and made up for losses from streaming media.

The Disney+ streaming service reported its first subscriber decline. The service shed 2.4 million subscribers as the company raised prices, bringing its total to 161.8 million. Analysts polled by FactSet had expected 162.7 million.

Adjusted earnings per share came in at 99 cents for the fiscal first quarter that ended Dec. 31, beating the Refinitiv consensus estimate of 78 cents.

Revenue hit $23.512 billion, ahead of Wall Street estimates of $23.4 billion.

Net income came in at $1.279 billion, below analyst estimates of $1.429 billion.

TECHNOLOGY

Twitter outage leaves many users unable to tweet

Twitter suffered an outage on Wednesday that prevented users from sending tweets or follow other users.

Twitter suffered an outage on Wednesday that prevented users from sending a tweet, following accounts or accessing their direct messages.

Users first noticed the problem when they tried to send tweets and received a message saying they had reached their "tweet limit."

Toyota logo (Getty Images)

Toyota said net profit fell 8.1% from a year earlier, but still beat Wall Street expectations.

The Japanese auto maker said net profit for the quarter fell to $5.54 billion.

Third-quarter revenue climbed 25% from a year earlier as vehicle sales increased, according to The Wall Street Journal.

Operating profit fell for Europe and Asia excluding Japan, and its North America operations posted an operating loss. Operating profit for Japan rose 72%.

The automaker is keeping its fiscal-year auto sales and earnings projections.

Toyota continues to expect group vehicle sales of 10.4 million units and revenue to increase 15% and net profit to fall 17%.

Pepsi, PayPal logos (Getty Images)

We’ll hear from soft drink giant PepsiCo, auto parts maker BorgWarner, breakfast cereal giant Kellogg, and multinational tobacco firm Philip Morris International among others.

Several health care-related names will report ahead of the opening bell. 

Watch for biopharmaceutical giant AbbVie, hospital operator Tenet Healthcare, and medical device maker Baxter International. 

 In the afternoon investors will parse numbers from Wall Street Journal parent News Corporation, financial technology and online payments company PayPal, online travel agency Expedia, telecom equipment maker Motorola Solutions, and ride-hailing company Lyft and many others.

Unemployment form (iStock)

The Labor Department will report how many workers filed for unemployment benefits last week.

Expectations are for 190,000 after falling unexpectedly to 183,000 the previous week, the lowest since April. 

The report comes as the labor market remains stubbornly tight even after months of aggressive Fed tightening. 

Continuing claims, which track the total number of workers collecting unemployment benefits, are expected to edge up to 1.658 million.

Continuing claims touched a 52-year low of 1.306 million in the week ending May 21.

Robinhood logo on smartphone (Getty Images)

Robinhood shares are rising more than 5% in premarket trading after the company reported a 5% rise in fourth-quarter revenue on Wednesday, as interest income surged at the online brokerage in the wake of the U.S. Federal Reserve's rapid rate hikes through most of last year.

Robinhood allows eligible customers to borrow money to purchase securities and charges an interest on the debt.

Analysts have said the feature, called "margin investing," can also be used to drive greater subscriptions to its premium Robinhood Gold as members can borrow money more cheaply than the standard rate.

Net interest revenue soared 165% to $167 million in the quarter, benefiting from the U.S. central bank's aggressive monetary policy tightening campaign to combat decades-high inflation.

Net loss in the quarter narrowed to 19 cents per share, compared with 49 cents per share last year.

The Menlo Park, California-based company reported revenue of $380 million in the three months ended Dec. 31, compared with $363 million a year earlier.

Posted by Reuters

Gas Prices (AAA)

The price of gasoline continued to tick lower on Thursday.

The nationwide price for a gallon of gasoline declined to $3.437, according to AAA.

The average price of a gallon of gasoline on Wednesday was $3.445.

A year ago, the price for a gallon of regular gasoline was $3.469.

One week ago, a gallon of gasoline cost $3.498.  A month ago, that same gallon of gasoline cost $3.280.

Gas hit an all-time high of $5.016 on June 14.

Diesel remains below $5.00 per gallon at $4.593, but that is still far from the $3.854 of a year ago.

Mattel logo (Getty Images)

Mattel shares are down more than 9% in premarket trading after the toy company forecast 2023 earnings below estimates on Wednesday, joining rival Hasbro Inc in feeling the brunt of persistently high inflation that has hit demand for its action figures and Barbie dolls.

While the toy industry has historically been more resilient to economic downturns than other discretionary sectors, Mattel said demand dropped off suddenly and sharply in October and November, leading to more profit-margin denting clearance sales to get rid of excess inventory.

Mattel projected adjusted profit between $1.10 and $1.20 per share for the full year, below analysts' expectations of $1.66, according to Refinitiv data.

The company's gross margin fell 630 basis points to 43% in the fourth quarter ended Dec. 31. Excluding one-time items, Mattel earned 18 cents per share, below estimates of 29 cents.

Overall gross billings for Barbie, Mattel's biggest brand, fell 33% in the quarter, while those of Hot Wheels rose 8%.

Total net sales fell 22% to $1.40 billion, missing estimates of about $1.68 billion.

Posted by Reuters

Oil rigs (Reuters)

Oil prices were little changed on Thursday as the prospect of higher fuel demand in China was offset by fears that U.S. crude stocks hit their highest for months.

West Texas Intermediate (WTI) crude futures traded around $78.00 a barrel.

Brent crude futures traded around $85.00 a barrel.

Both benchmarks have gained more than 6% so far this week.

Crude oil stocks in the United States rose last week to their highest since June 2021, helped by higher production, the Energy Information Administration said on Wednesday.

U.S. gasoline and distillate inventories also rose last week as demand remained weak.

Cans of 9 Lives cat food. (Reuters)

Post Holdings is acquiring select pet food brands from The J.M. Smucker Co. for $1.2 billion.

Shares of Post Holdings are gaining 1.4% in premarket trading.

Shares of J.M. Smucker are adding less than 1%.

The transaction includes leading dog and cat food brands such as Rachael Ray Nutrish, Nature’s Recipe, 9Lives, Kibbles ‘n Bits and Gravy Train, which together generated net sales of $1.4 billion in the year ended April 30, 2022.

Post also is acquiring manufacturing and distribution facilities in Bloomsburg, Pa. and manufacturing facilities in Meadville, Pa. and Lawrence, Kan.

The transaction is expected to be completed early in the second calendar quarter of 2023, Post’s third quarter of fiscal year 2023, subject to closing conditions, including the expiration of waiting periods under United States antitrust laws.

Posted by Reuters

Bitcoin was trading around $22,000, after snapping a two-day winning streak.

For the week, Bitcoin is down 3%.

For the month, the cryptocurrency has gained less than 0.1%, but is up 38% year-to-date.

Ethereum was trading around $1,600, after gaining 0.5% in the past week.

Dogecoin was trading at 8 cents, after losing  more than 3% in the past week.