Stocks in the news: Apple, Anglo American, Walgreen's, Merck
Apple Inc. (AAPL) The Wall Street Journal reported over the weekend that Steve Jobs had a liver transplant two months ago, but will return to Apple soon in a month or so. The report said Jobs is recovering well. Apple also said Monday that it has sold more than 1 million iPhone 3GS models through Sunday, just three days after the phone's launch.
Xstrata on Sunday proposed a merger of equals with Anglo American (AAUK), worth 41 billion pound ($67 billion). The deal would make the combined firm the world's number-three miner behind only BHP Billiton (BHP) and Vale (VALE). Anglo American shares rallied on Monday as investors bet it will reject a merger proposal from Xstrata and demand a premium for a deal to go through. AAUK shares climbed over 6 percent ahead of the bell.
Walgreen's (WAG), the pharmacy chain, says its profit fell 9 percent in the fiscal third quarter, as revenue grew by 8 percent as the company's cost-cutting efforts aimed at cutting annual expenses by $1 billion starting in 2011 reduced total earnings this year. The company's earnings of 53 cents per share for the quarter were below expectations of 56 cents per share. Shares declined over 4.5 percent in pre-market trade.
Merck (MRK) and Schering-Plough (SGP), which are in the process of a $41.1 billion tie-up, said Monday the Federal Trade Commission has asked for more information about the deal. The companies still expect the deal to close in the fourth quarter.
Marvell Technology (MRVL) increased its revenue estimate for its August-ending quarter. Still, the maker of chips said it encourages everyone "to remain cautious of the demand environment for the next few quarters." Shares were 2.4 percent higher in pre-market trade.
Goodyear Tire & Rubber Co. (GT) is curbing production at its Union City, Tenn., tire plant because of weak industry demand. As a result, 550 workers will take buyout packages, and Goodyear will record a $60 million charge in the second quarter.
VeriSign Inc. (VRSN) was upgraded at J.P. Morgan to Overweight from Neutral, noting that the stock prices in adequate near-term litigation risk stemming from a longstanding antitrust lawsuit launched by the Center for ICANN Transparency.
Bank of America (BAC), Citigroup Inc. (C) and MasterCard (MA) all had managment and board changes.