Stocks were mixed Monday as the yield on the 10-year U.S. Treasury note eased off 5%. Wall Street was gearing up the busiest week of the earnings season, including reports from some of the tech sector’s biggest names such as
Microsoft,
Alphabet,
Amazon.com,
and
Meta Platforms.
These stocks made moves Monday:
Chevron
(CVX) reached a deal to buy
Hess
(HES) in all-stock deal valued at $53 billion, or $171 a share. The total enterprise value of the transaction, including debt, is $60 billion.
Chevron
shares fell 3.7%, while
Hess
dropped 1.1% to $161.30.
Tesla
(TSLA) was flat. The electric-vehicle maker said capital spending on plants and equipment should exceed $9 billion in 2023, and average $7 billion to $9 billion a year in 2024 and 2025. Wall Street has been modeling just below $9 billion in 2023, but above $9 billion in 2024 and $10 billion in 2025.
Tesla
also said the Justice Department requested additional information, including subpoenas, from the company as it investigates Tesla’s autopilot technology.
FMC
(
FMC
) dropped 13% and was the worst performer in the S&P 500 after the agricultural-sciences company said it was reducing third-quarter revenue guidance to $982 million, below analysts’ estimates of just under $1.2 billion, “primarily due to lower volumes in Latin America as destocking was more severe than anticipated.” FMC also cut its revenue outlook for the fourth quarter and fiscal year.
Roche Holding
(RHHBY) agreed to buy Telavant Holdings, a developer of a drug for people suffering from inflammatory bowel disease, from
Roivant Sciences
(ROIV) and
Pfizer
(PFE) in a deal worth up to $7.25 billion. The acquisition will give Roche, the Swiss drugmaker, the right to develop, manufacture and commercialize drug candidate RVT-3101 in the U.S. and Japan.
Roivant Sciences
shares fell 11%.
Pfizer
shares rose 0.6%.
Textainer Group Holdings
(TGH), a shipping-container lessor, agreed to be acquired by infrastructure investor Stonepeak for about $2.1 billion. Textainer shareholders will receive $50 a share in cash; the stock closed at $34.15 on Friday and surged 42% to $49.41 on Monday. The deal has an enterprise value of about $7.4 billion including Textainer’s debt.
Okta
(OKTA) fell 8% after slumping 12% on Friday following the company’s disclosure that a hacker used a stolen credential to access its support system. “The threat actor was able to view files uploaded by certain
Okta
customers as part of recent support cases,” Okta’s Chief Security Officer David Bradbury said in an online post. Okta’s support system is separate from the production Okta service, which hasn’t been affected. All affected customers have been notified of the incident, the company said.
MGM Resorts
(MGM) rose 3.9% and was the top performer in the S&P 500. Shares of the casino operator were initiated with a Buy recommendation at
HSBC.
Walgreens Boots Alliance
(WBA) rose 3.3% to $21.96. Shares of the drugstore chain were upgraded to Overweight from Neutral at
J.P. Morgan
and the price target was raised to $30 a share from $27.
EngageSmart
(ESMT) reached a deal to be acquired by Vista Equity Partners for $23 a share of $4 billion.
EngageSmart
stock rose 12% to $22.60.
Write to Joe Woelfel at [email protected]
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