Market Wrap: Freeport M&A's into Energy; Citi Joins Job Cut Party; Apple has Rotten Day; SAC Shunned by Big Bank

December 5, 2012 5:22 PM EST
Market wrap-up for December 4th

End of the Day: S&P 500 up 2.2 to 1,409.28; Dow Jones up 82.7 to 13,034.49; Nasdaq down 23.0 to 2,973.70

The following is a brief summary of events moving markets today:

* A 'crude' acquisition: Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), Plains Exploration & Production Company (NYSE: PXP) and McMoRan Exploration Co. (NYSE: MMR) announced today that they have signed definitive merger agreements under which FCX will acquire PXP for approximately $6.9 billion in cash and stock and FCX will acquire MMR for approximately $3.4 billion in cash, or $2.1 billion net of 36 percent of the MMR interests currently owned by FCX and PXP.

Total value of the combined transactions is about $20 billion, inclusive of debt.

Some speculate that the move is a play on moving into energy, with Freeport aiming to be like a "little BHP Billion (NYSE: BHP)," according to reports today.

For more color, click here.

* Not Hurricane Sandy related: Citigroup (NYSE: C) announced plans to cut 11,000 positions, or about 4 percent of its global workforce. The firm also sees $1.1 billion in charges through Q113, but expects cost savings of $1.1 billion starting in FY14. For the release, click here.

* There's a worm in this one: Apple (Nasdaq: AAPL) was hit on several news bits today, ranging from increased margin requirements to Nokia (NYSE: NOK) inking a key deal in China, to expectations of a 20 percent drop in Q1 iPhone 5 sales. For a rundown, click here.

* Nasdaq clicks 'like': Facebook (Nasdaq: FB) was added to the Nasdaq 100 late Tuesday night, showing that the company has put itself on a firm trajectory. The company will be replacing Infosys Limited (Nasdaq: INFY).

* Here, put your money in this rhodium ETF instead!: A unit of Citi also said it was advising against clients putting money into Steve Cohen's beleaguered SAC Capital. SAC is under fire with regulators over allegations that a former trader orchestrated the largest insider trading scheme ever.

* Party's over?: HSBC Insurance Holdings Limited (NYSE: HBC) announced an agreement to sell its 15.5 percent stake in Ping An Insurance for $9.385 billion. The move comes as the rapid economic growth once enjoyed in China is showing some signs of slowdown.

* Developing redemption: Eastman Kodak (OTCBB: EKDKQ) was said to garner a bid larger than $500 million for its digital patent portfolio, the WSJ noted late this afternoon. The news comes as Kodak is in talks for $830 million in loans, but creditors require that Kodak unload the assets for at least $500 million.Click here to go to Streetinsider's Full News Feed and never miss a beat!

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