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Market Update

Chrysler Leads August Auto Sales Growth, Compuware in $2.5 B Deal

Author: Mukesh Buch
Last Update: 12:39 PM ET September 03 2014

12:35 PM New York – Compuware to acquired Thoma Bravo for $2.5 billion. CVS Caremark stops selling cigarettes from today. Chrysler leads U.S. auto sales in August with the surge of 20%, Ford sales rose 0.4% and GM sales fell 1%. Toyota sales jumped 6%.

Tollbooth Index slid 0.2% or 15.86 to 9,518.74.

Earnings Review

The AES Corporation (AES) slipped 1.2% or 18 cents to $14.77 after the power generation company strategic partnership with the Estrella-Linda Group, an investor group of the Dominican Republic that will acquire 8% stake in AES'' business in the Dominican Republic for $96 million.

The transaction is expected to close in the fourth quarter of this year.

Compuware Corp (CPWR) rose 1 cent to $10.60 after the software developer agreed to be acquired by privately-held Thoma Bravo LLC in a transaction valued at about $2.5 billion.

Under the terms, shareholders of the Compuware will receive about $10.92 per share, representing 16.8% premium to the company''s closing stock price of $9.35 per share on August 29.

The transaction is expected to close by early 2015.

CVS Caremark Corporation (CVS) gained 57 cents to $80.30 after the pharmacy retailer said it is changing its corporate name to CVS Health.

The drug retailer also stopped selling cigarettes and tobacco products from its retail pharmacies from today.

Chrysler Group LLC said U.S. sales in August surged 20% to 198,379 units from a year earlier. The August month sales was the 53rd consecutive monthly sale increase and the group’s best August sales since 2002.

Through August, sales of the Jeep soared 49% to 68,766 units and sales of Ram pickups climbed 33% to 43,775 units.

Total car sales in the month dropped 3% to 42,752 units but total truck sales climbed 28% to 155,627 units from a year ago month.

Ford Motor Company (F) slid 5 cents to $17.55 after the automaker said U.S. sales rose 0.4% to 222,174 units in August from a year ago and reported best August sales in eight years.

Retail sales rose 2% to 178,800 units while fleet sales declined 6% to 43,374 units. Sales of Fusion surged 19% to 29,452 units and Escape sales jumped 9% to 28,996 units.

General Motors Co (GM) slipped 22 cents to $34.58 after the automobile company reported August sales declined 1.2% to 272,423 units and blamed tough comparison to a strong August 2013.

G-III Apparel Group, Ltd (GIII) climbed 3.6% or $3.06 to $87.24 after the apparel retailer said total net sales in the second-quarter ending in July surged 39% to $424 million from a year ago period.

Net income in the quarter double to $6.2 million or 29 cents a diluted share compared to $3.6 million or 17 cents from a same quarter last year.

Toyota Motor Corp (TM) fell 6 cents to $116.14 after the automaker said August sales in the U.S. jumped 6.3% from a year ago month to 246,100 vehicles.

Toll Brothers Inc (TOL) declined 3.3% or $1.17 to $34.46 after the home builder reported total revenues in third-quarter ending in July surged 53% to $1.06 billion from a year ago period.

Net income in the quarter surged 110% to $97.7 million or 53 cents a diluted share compared to $46.6 million or 26 cents from a same quarter last year.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc