Stocks in the News: Express Scripts, General Motors, Boeing, American Express
It's shaping up to be an interesting day.
As Bloomberg News notes, "Express Scripts lost a hostile takeover bid two years ago for rival benefits manager Caremark Rx Inc., which was acquired by drug store chain CVS Corp. for $27.5 billion. The WellPoint acquisition will give Express Scripts more clout in negotiating lower prices on prescription medicine."
General Motors Corp. (GM) was told by the federal government to prepare for a possible bankruptcy by June 1, according to the New York Times. Shares of the automaker are called down. Barron's over the weekend reported that shares of American Express Corp. (AXP) could at least double over the next two years.
Anheuser-Busch InBev NV is considering selling its Rolling Rock brand to pay down debt from last year's acquisition, which created the world's largest brewer, according to the Wall Street Journal.
Shares of Yahoo! Inc. (YHOO) and Microsoft Corp. (MSFT) are up on a report in the Journal that the two companies restarted talks about a potential advertising partnership. Casino operator MGM Mirage (MGM) shares soared after the company reportedly received a waiver from lenders for its CitCenter development on the Las Vegas Strip, according to Bloomberg.
Chevron Corp. (CVX) and other oil companies may fall. Before the Good Friday holiday, the oil company warned that first quarter earnings would be sharply lower because of falling oil and natural gas prices. Declining demand also continues to push down oil prices.
Shares of Boeing Co. (BA) continue to fall after the No. 2 airplane maker said last week earnings may be reduced by about 38 cents because of rising costs and production delays for the 777 aircraft. Monthly production of the new jet liner was cut from seven to five. S&P said it may downgrade the Chicago-based company's debt.
Investor Laslo Birinyi told Bloomberg Television that the stock market is overbought. "Buying stocks is like crossing Fifth Avenue when the light is red," he said. "You might make it, but the odds are not with you."