A Few Big Deals Help Keep Investors Happy as Indexes Fall

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

The major indexes are all moving slightly lower this afternoon. As of 12:45 p.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is down 45 points, or 0.26%, while the S&P 500 is off by 0.3% and the Nadaq is lower by 0.5%.

Big news on the day is the U.S. Senate's widely anticipated approval of Janet Yellen as the next Federal Reserve chair, along with some slightly disappointing data from the Institute of Supply Management.

Economists had expected a reading of 54.5 for the ISM nonmanufacturing PMI report for December, but the actual number was 53. While a figure above 50 still indicates expansion, the latest number doesn't represent as much as most were looking for.

Just because the major indexes are falling doesn't mean everyone is having a bad day. Shares of Sirius XM (NASDAQ: SIRI  ) are higher by 7% after Liberty Media (NASDAQ: LMCA  ) offered to buy the remaining shares of the satellite radio company that it already doesn't own. The offer price was the equivalent of $3.68 per share, but current Sirius shareholders will get Liberty Media shares. Sirius public shareholders would then own roughly 39% of Liberty's shares, because the company plans to perform a 2:1 split prior to the Sirius deal closing. Liberty's Class A shares are lower by 2.7% at this time.  

Another partnership making news this afternoon is the deal between (NASDAQ: PCLN  ) and General Motors Chevrolet. The deal would enable Chevrolet customers who have the OnStar service to access a customer service representative or, later in 2014, an app that can help with a Priceline booking on the go. Priceline says it is trying to capitalize on the fact that hotels are one of the most requested categories on the OnStar service by offering Chevrolet customers a better experience and cheaper hotel rooms than before. Shares of Priceline are down 0.1%, while GM is up more than 1.4%.  

Lastly, shares of Twitter (NYSE: TWTR  ) are down more than 5% after Morgan Stanley downgraded the stock this morning. The previous equal-weight rating was cut to underweight, while the price target of $33 per share was maintained. The firm believes that the risk/reward profile of the stock is nowhere close to being attractive at this time. The analyst feels that there is no guarantee that the company will ever become successful as the advertising market becomes increasingly crowded every day. Additionally, as it sits today, the stock has priced in a tripling of the company's socially enabled advertising market within the next three years, a goal that is going to be difficult to reach.  

More Foolish insight

There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2784534, ~/Articles/ArticleHandler.aspx, 9/4/2015 9:38:01 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Matt Thalman

Matt primarily covers the Dow Components, the Major Indexes daily moves, Consumer Goods stocks, and General Investing Topics.

Today's Market

updated 22 minutes ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 4:30 PM
^DJI $16102.38 Down -272.38 -1.66%
LMCA $37.07 Down -0.42 -1.12%
Liberty Media CAPS Rating: ****
PCLN $1245.25 Up +4.88 +0.39%
Priceline Group CAPS Rating: ****
SIRI $3.78 Down -0.02 -0.53%
Sirius XM Radio CAPS Rating: ***
TWTR $28.15 Down -0.15 -0.53%
Twitter CAPS Rating: ***