U.S. Stocks Struggle, Forest to Buy Aptalis Pharma for $2.9 B

Nichole Harper
08 Jan, 2014
New York City

Stocks on Wall Street eased ahead of jobs report and earnings releases later in the week. Forest Labs agreed to acquire Aptalis Pharma for $2.9 billion in cash. European Union

[R]12:15 PM New York – Stocks on Wall Street eased ahead of jobs report and earnings releases later in the week. Forest Labs agreed to acquire Aptalis Pharma for $2.9 billion in cash. European Union’s jobless rate remained at elevated level of 12.1%.[/R]

Stocks on Wall Street struggled to find a direction and investors stayed cautious ahead of earnings season after sharp rise in market indexes in the last twelve months.

S&P 500 index declined 1.08 to 1,836.86 and the Nasdaq Composite Index rose 9.62 to 4,162.80.

A private report showed companies added 238,000 jobs in December according to ADP Research Institute.

The Labor Department is scheduled to release monthly jobs data on Friday.

European Markets

The unemployment in the euro zone remained at stable but elevated level of 12.1% in November, Eurostat, the European Union’s statistics agency reported today.

The jobless rate has been held at the same level since April and has increased from 10% in 2011.

For the European Union of 28 member states, the jobless rate was unchanged at 10.9% and the statistics agency said 19,000 more people were looking for job totaling 26.6 million across the region.

In a separate report the agency said retail sales in the month increased 1.4% from October when sales had declined 0.4%.

Yesterday, the agency reported consumer prices in the euro zone increased 0.8% in December.

In London trading, FTSE 100 index decreased 0.4% or 26.33 to 6,729 and in Frankfurt the DAX index slid 0.1% or 11.68 to 9,495.

In Paris, CAC 40 index fell 0.2% or 8.76 to 4,254.

U.S. Stocks in Review

Alcoa Inc ((AA)) increased 1.4% to $10.69 ahead of earnings release after the market close. Sales are expected to increase at least 3.5% in 2013 following 2.2% increase in 2012.

Constellation Brands, Inc ((STZ)) surged 8.6% or $6 to $75.94 after the wine maker reported revenue in the third-quarter ending in November soared 88% to $1.44 billion.

Net income for the quarter climbed 93% to $211 million or $1.07 per diluted share compared to $109.5 million or 58 cents per share.

Ford Motor Company ((F)) increased 1.6% to $15.62 after Chief Executive Alan Mulally ended the speculation that he was leaving the automaker to join Microsoft.

Microsoft Inc ((MSFT)) declined 1.3% to $35.94.

Forest Laboratories, Inc ((FRX)) surged 14.6% or $8.60 to $67.36 after the drug products maker agreed to acquire Aptalis Holdings Inc, the specialty pharmaceutical company from private equity firm TPG Capital LP for about $2.9 billion in cash.

The transaction is expected to close in the first half of 2014.

Monsanto Company ((MON)) jumped 2.9% or $3.34 to $116.15 after the agricultural products provider reported total net sales in the first-quarter ending in November advanced 6.8% to $3.14 billion.

Net income for the quarter climbed 8.5% to $368 million or 67 cents per diluted share compared to $339 million or 62 cents per share.

For the year, Monsanto expected earnings per share in the range of $5.02 to $5.22.