Wall Street’s main indexes were a mixed bag as investors were weighing the prospects for a fresh COVID-19 stimulus package, and as disappointing US retail sales data raised concern about a recovery of the pandemic-led economic crisis.
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US Commerce Department data showed that retail sales data fell more than expected in November from the previous month. Specifically, retail sales declined 1.1% last month from October, as the resurgence of new coronavirus infections and declining household income curtailed spending. Economists polled by Reuters had forecast retail sales would slip 0.3% in November.
The Dow Jones Industrial Average decreased 0.2%. The S&P 500 Index rose 0.1%. and the tech-heavy Nasdaq Composite Index was up 0.3%.
In cannabis news, Tilray shares surged 26% after the company inked an agreement to merge with Aphria and create the world’s largest global cannabis company based on pro forma revenue of C$874 million ($685 million). The implied pro forma equity value of the combined company is about C$5 billion ($3.9 billion), based on the share price of Aphria andTilray at the close of market on December 15. The advanced merger talks with Aphria were earlier reported by Bloomberg.
Shares of GoDaddy rose 2.6% after the company announced a deal to acquire payment processing company Poynt for $320 million in cash and $45 million in deferred cash payments, contingent on certain performance and employment conditions over three years. The transaction is expected to close in 1Q21. GoDaddy believes that the Poynt deal accelerates its strategy to provide a complete suite of commerce and payment services to customers.
In another M&A deal, Unity Software climbed 3% after announcing the acquisition of RestAR, an Israel-based computer vision and deep learning company. Commenting on the deal, Unity, a video game software developer, said, “RestAR will extend the power of interactive RT3D (real-time 3D) technology to marketers of all types by generating a digital twin of any product or object in 3D.” Unity’s Dave Rhodes, noted “With the acquisition of RestAR, Unity is giving massive power to brands, retailers, and consumers by democratizing digital marketing for almost any product.”
In energy news, BP PLC has bought a majority stake in US-based forest carbon offsets company Finite Carbon, as the oil giant has set out a goal to become a net zero company by 2050. BP did not disclose any additional details on the financial terms of the deal. Finite Carbon was founded in 2009 and has since become the largest developer of forest carbon offsets in North America, with more than 40 forest projects covering nearly three million acres. “Finite Carbon has the potential to build a global platform for managing and financing natural climate solutions,” said David Eyton, BP’s executive vice president of innovation and engineering.
Meanwhile, Dish Network plunged 9.4% as the company announced plans to sell $2 billion in convertible notes to finance its 5G buildout. The company expects to grant to the initial purchaser an option to buy up to an additional $300 million in aggregate principal amount of the notes to cover over-allotments.
In earnings news, Quest Diagnostics raised its 2020 full-year profit and sales outlook as the diagnostics company said it experienced “significantly” higher COVID-19 molecular testing volumes. Quest noted that since it reported its 3Q financial performance on October 22, COVID-19 molecular testing volumes have been rising much faster than anticipated in its previous outlook. As a result, the company now expects 2020 diluted earnings per share to be at least $9.98, up from the previous outlook of $8.22-$9.22. Adjusted diluted EPS guidance for 2020 was lifted to at least $10.75 versus the previous outlook of $9-$10. The Street consensus is for EPS of $10.01.