Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Stock Market Today: Why Covidien and DreamWorks Stocks are on the Move

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) has lost 31 points in pre-market trading, suggesting a negative start to the market today. World indexes ticked lower overnight, led by a 1% drop in Japan's Nikkei. European shares were off by 0.5% as of 8:30 a.m. EDT. 

Meanwhile, breaking news on Covidien (NYSE: COV  ) and DreamWorks Animation (NASDAQ: DWA  ) could spur heavy trading in both stocks today. 

Covidien's shares were up 29% in pre-market trading after the health-care technology giant agreed over the weekend to be purchased by Medtronic (NYSE: MDT  ) .  The proposed deal is worth $43 billion and values Covidien's stock at roughly $93 a share. However, a big chunk of the purchase price will be delivered to Covidien shareholders in the form of Medtronic stock -- and that's making for some interesting pre-market action. Investors also bid up Medtronic's shares by 5.5%, which explains why Covidien's stock was already trading just above the announced purchase price. Medtronic said in a press release that this deal will create a medical tech and services company with almost $30 billion in annual sales and a massive global reach to over 150 countries. The merger should start kicking in higher cash earnings in fiscal 2016, with per-share earnings growth slated for 2018, according to Medtronic. 

Image source: DreamWorks.

DreamWorks Animation investors can breathe a sigh of relief. How to Train Your Dragon 2 opened to a solid $50 million in weekend receipts at the box office, which puts the animated film on track to beat the original movie's blockbuster $217 million domestic haul. While this weekend's opening wasn't as high as the $65 million that some analysts were targeting, it was far from a flop. And that win reverses an uncomfortable string of poor showings for DreamWorks: Mr. Peabody & Sherman last quarter joined 2013's Turbo and 2012's Rise of the Guardians as financial losers for the company. Audiences gave Dragon 2 high reviews (the film notched an A rating on CinemaScore), which should give it some staying power over the next few months. And a less crowded movie slate this summer means that the path is clear for the film to rack up some significant revenue for DreamWorks. The stock was down 6.8% in pre-market trading.

Your cable company is scared, but you can get rich
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple. 


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

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: 2995068, ~/Articles/ArticleHandler.aspx, 8/29/2015 5:36:06 AM

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...

Demitrios Kalogeropoulos

Demitrios covers consumer goods and media companies for, as well as broader moves in the economy.

Today's Market

updated 8 hours ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

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

8/28/2015 4:55 PM
^DJI $16643.01 Down -11.76 -0.07%
COV $0.00 Down +0.00 +0.00%
Covidien CAPS Rating: *****
DWA $20.29 Down -0.03 -0.15%
DreamWorks Animati… CAPS Rating: ****
MDT $73.56 Up +0.04 +0.05%
Medtronic CAPS Rating: ****