Market Wrap: Apple's New Record; Augusta Opens Up; Lowe's Lives Up to Name; Best Buy's New Chief


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August 20, 2012 5:24 PM EDT Send to a Friend
Market wrap-up for August 20th

End of the Day: S&P 500 down 0.1 to 1,418.13; Dow Jones down 3.6 to 13,271.64; Nasdaq down 0.4 to 3,076.21

The following is a brief summary of events moving markets today:
  • Megatron!: Apple Inc. (Nasdaq: AAPL) surpassed the $664 price level, nearly getting to $665, as it became the most valuable company ever. The market cap at $620 billion surpassed that of Microsoft in the late-90s, when it hit a cap of $618.9 billion.

    With a smaller iPad and updated iPhone slated to be released later in 2012, not to mention a possible TV/set-top-box (STB) unit slated for 2013 (or later), it doesn't appear Apple has plans to slow down anytime soon.

    For more color on the valuation, click here.

  • More healthcare consolidation in the works: Aetna (NYSE: AET) entered a deal to acquire Coventry Health Care, Inc. (NYSE: CVH) for $5.6 billion. In the deal, Coventry stockholders will receive $27.30 in cash and 0.3885 Aetna common shares for each Coventry share, or $42.08 per share, based on the closing price of Aetna common shares on Friday, August 17, 2012.

    For more on the merger, click here.

  • This one's still squeaky: Lowe's Co.'s (NYSE: LOW) pressured names like Home Depot (NYSE: HD) and Lumber Liquidators (NYSE: LL) Monday following second-quarter 2012 results, issued ahead of the opening bell.

    Earnings were 65 cents per share on sales of $14.25 billion, versus consensus views calling for EPS of 70 cents and sales of $14.5 billion.

  • Groupon backers back out: No deal:" Groupon (Nasdaq: GRPN) ended the session over 2 percent lower Monday following reports earlier that some large investors were losing faith in the daily-deal website, selling shares in the process. According to Bloomberg, Battery Ventures and Andreessen Horowitz sold 15.99 million and 5.1 million shares, respectively. In addition, Swedish firm Kinnevik also unloaded 8.38 million Groupon shares shortly after expiration.

  • Former travel exec to head...retail chain?: Following the departure of scandal-riddled Brian Dunn earlier in 2012, Best Buy (NYSE: BBY) named hospitality and travel sector veteran Hubert Joly as its President and CEO. Joly also worked at Vivendi in its video games unit as well as EDS (which is now part of H-P (NYSE: HPQ)).

    Founder Richard Schulze also commented on the appointment, reiterating concerns that Best Buy will still face enormous challenges. Schulze has been looking to acquire Best Buy, bidding $24 to $26 per share in the process.

  • Not a gamble when you have insight: Casino stocks ended the session higher Monday amid reports that LVS) was the big winner on the session, closing up over 3 percent.

  • A new tradition like no other: According to reports out Monday, Augusta National Golf Club admitted the first women members in its 80 year history. The two women are former U.S. Secretary of State Condoleezza Rice and financier Darla Moore.

    In a statement from the club today, president Billy Payne noted: "This is a joyous occasion as we enthusiastically welcome Secretary Condoleezza Rice and Darla Moore as members of Augusta National Golf Club."

    Augusta is best known for hosting the annual Masters Tournament, which generally takes place in April.
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