Stocks fall in choppy session but Peloton, Spirit buck downtrend
Frontier buying Spirit in a deal valued at $3B to create fifth-largest carrier
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BMO Capital Markets chief investment strategist Brian Belski and Strategic Wealth Partners wealth advisor Luke Lloyd weigh in on the stock market and NFTs on 'Making Money.'
U.S. stocks ended mostly lower in seesaw trading on Monday, as investors took in merger and acquisition news while also prepping for another busy week of earnings with about 80 S&P 500 companies set to report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 38239.98 | +253.58 | +0.67% |
| SP500 | S&P 500 | 5010.6 | +43.37 | +0.87% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15451.305261 | +169.30 | +1.11% |
The Dow Jones Industrial Average closed flat, while the Nasdaq and S&P 500 fell by 0.4% and 0.6%, respectively.
In deal news Monday, Frontier is buying Spirit Airlines in a $3 billion deal, which is aiming to raise competition and give travelers more options to fly to midsize cities as well as regions that are underserved, according to the companies. Shares jumped over 17%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ULCC | FRONTIER GROUP HOLDINGS | 7.11 | +0.15 | +2.16% |
| SAVE | SPIRIT AIRLINES INC. | 3.91 | -0.13 | -3.22% |
Discount carrier Southwest Airlines and larger carriers Delta, America and United all rose on M&A speculation.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LUV | SOUTHWEST AIRLINES CO. | 29.73 | +0.35 | +1.19% |
| DAL | DELTA AIR LINES INC. | 49.02 | +1.45 | +3.05% |
| AAL | AMERICAN AIRLINES GROUP INC. | 14.54 | +0.43 | +3.05% |
| UAL | UNITED AIRLINES HOLDINGS INC. | 53.94 | +2.56 | +4.98% |
INFLATION DATA, PELOTON TAKEOVER? AND DISNEY EARNINGS TOP WEEK AHEAD
Peloton spiked 21% after The Wall Street Journal reported the cycling giant is a takeover candidate. Possible suitors include Amazon, Nike and Apple, according to reports.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 3.05 | +0.02 | +0.66% |
| AMZN | AMAZON.COM INC. | 177.23 | +2.60 | +1.49% |
| NKE | NIKE INC. | 94.19 | -0.34 | -0.36% |
| AAPL | APPLE INC. | 165.84 | +0.84 | +0.51% |
Peloton's shares have lost over 80% of their value during the past 12 months after a string of negative events, including the death of child on its Tread machine, a natural slowdown from pandemic sales and a skit on the "Sex and the City" reboot that killed off character Mr. Big, who died riding the bike.
In earnings, Tyson Foods reported revenue of $12.93 billion, exceeding estimates despite rising inflation and labor shortages. Shares gained 12%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSN | TYSON FOODS INC. | 60.61 | +0.65 | +1.08% |
Hasbro also posted revenues that beat expectations, jumping over 50% to $2 billion vs. a $1.87 billion estimate. The toymaker also lifted its dividend 3% still shares closed fractionally lower.
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In cryptocurrencies, Bitcoin continued its climb above the $40,000 level.
In energy trading, benchmark U.S. crude slipped over 1% to $91.32 per barrel.
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