Stocks fall in choppy session but Peloton, Spirit buck downtrend

Frontier buying Spirit in a deal valued at $3B to create fifth-largest carrier

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 32637.19 +516.91 +1.61%
SP500 S&P 500 4057.84 +79.11 +1.99%
I:COMP NASDAQ COMPOSITE INDEX 11740.650441 +305.91 +2.68%

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 9.52 +0.60 +6.73%
SAVE SPIRIT AIRLINES INC. 19.86 +0.99 +5.25%

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. 45.11 +2.64 +6.22%
DAL DELTA AIR LINES INC. 40.84 +2.22 +5.74%
AAL AMERICAN AIRLINES GROUP INC. 17.24 +1.11 +6.88%
UAL UNITED AIRLINES HOLDINGS INC. 46.07 +2.99 +6.94%

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. 13.90 +0.85 +6.51%
AMZN AMAZON.COM INC. 2,221.55 +86.05 +4.03%
NKE NIKE INC. 112.94 +4.74 +4.38%
AAPL APPLE INC. 143.78 +3.26 +2.32%

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. 89.72 +0.58 +0.65%

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. 

INFLATION DRIVING WORKERS TO WANT HIGHER PAY: WORKFORCE ANALYST

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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