Stocks head higher; Pfizer's big deal; Anthem data breach
Stocks are heading higher as investors look past Greece’s debt drama and focus on earnings and a big deal in drug sector.
Also helping sentiment, oil prices are bouncing back after yesterday’s slide and some encouraging news on the labor market ahead of tomorrow’s closely watched government jobs report.
The Labor Department reporting jobless claims rose by 11,000 to 278,000 last week, less than what economists were forecasting.
A jump in Pfizer (PFE) shares is giving a boost to the Dow (^DJI). The drug maker is buying Hospira (HSP) a provider of injectable drugs in a deal valued at a little over $15 billion, or $90 a share in cash.
Anthem (ANTM) shares were lower after the nation's second largest health insurer said it was hit by a massive data breach. Hackers broke into the company's database containing personal information, such as names and social security numbers, for about 80-million past and current customers. But Anthem said it didn't appear that credit card and medical information was compromised.
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Earnings also in focus this morning.
Michael Kors (KORS) stock is down sharply. The luxury brand retailer lowered its outlook for its current quarter after same-stores sales in North American came in weaker-than-expected. However, earnings and revenue for its previous quarter topped expectations.
Related: Michael Kors shares gets bagged; Keurig cools down; Twitter jumps on Google deal talk
Keurig Green Mountain (GMCR) shares are cooling down. The maker of K-Cup single-serve coffee pods cut its outlook for the year citing currency headwinds. The company also reporting earnings and revenue that missed estimates due to disappointing sales of its brewing systems during the holiday quarter.
Dunkin' Brands (DNKN) shares were higher in early trading. The owner of Dunkin' Donuts and Baskin Robbins chains issued a disappointing outlook for the year after reporting sales growth in its U.S. stores slowed last quarter. Earnings per share also missed estimates, but revenue was slightly better than forecasts, up more than 5% from a year earlier.
Yahoo Finance Senior Columnist Michael Santoli points out that the hyper competitive breakfast business is probably to blame here.
Santoli also adds that takeover of Dunkin is possible.
“I do think down the road somebody is going to say 'why can’t current management realize value out of this business,'” he says.
Related: Dunkin' Donuts' "squishy" quarter reason for concern
Twitter (TWTR) stock is jumping on reports the micro-blogging company is teaming up with Google in a deal that will make it easier for Tweets appear in Google's search results. Google Class C (GOOG) shares are moving higher as well. Twitter is scheduled to report quarterly earnings after the close of trading today.
Related: Twitter and Google say, 'I luv u'
Apple (AAPL) may be looking to get into the direct-to-consumer TV business according to Re/code. The idea would be to bundle a limited number of network offerings similar to Dish TV's (DISH) new $20 dollar a month Sling TV.
