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Market Update

Cox in $4 B Deal with Dealertrack, Boeing in Plane Deals in Paris Show

Author: Mukesh Buch
Last Update: 1:14 PM ET June 16 2015

1:00 PM New York Boeing sold 100 737 MAX 8 passenger jets worth $10.7 billion at a list price to AerCap. Berkshire Hathaway agreed to acquire 3.7% stake in Insurance Australia Group. Cox Automotive agreed to buy Dealertrack for $4 billion. FactSet net soared 19%.

Tollbooth Index increased 0.2% or 19.67 to 10,703.34.

Earnings Review

Adobe Systems Inc (ADBE) gained 1.1% or 89 cents to $79.79 after the software developer forecasted second-quarter earnings of 45 cents a share on revenue of $1.2 billion.

Boeing Co (BA) rose 13 cents to $142.42 after the aerospace company said at the Paris air show sold 100 737 MAX 8 passenger jets to Netherlands-based AerCap NV, the aircraft leasing company in a deal worth $10.7 billion at list prices.

AerCap owns about 1,800 aircrafts and operates in more than 90 countries.

Separately, Boeing said SMBC Aviation Capital placed an order for additional order for 10 737 MAX 8s including for 80 737 MAX 8s that now for a total of 90 aircrafts.

As per website of the aerospace company it secured total orders of about 210 planes from various airlines.

Berkshire Hathaway Inc ((BRK.A)) jumped $499.95 to $209,799.95 after the conglomerate agreed to acquire 3.7% stake in Australia-based Insurance Australia Group for about $500 million as part of a ten-year strategic partnership.

Berkshire will buy 89.8 million new IAG shares at $5.57 per share with an option to buy additional 5% within 24 months but also agreed not to exceed 14.9% stake.

Cox Automotive, Inc, the vehicles trader agreed to acquire software solutions provider for automotive retailers Dealertrack Technologies, Inc. in an all-cash deal valued at $4 billion.

Cox offered $63.25 per Dealertrack share, a 59% premium to closing stock price of $39.85 per share on Friday.

The transaction is expected to close in the third-quarter.

FactSet Research Systems Inc (FDS) slipped 1.6% to $2.53 to $162.96 after the financial professional analytical applications provider reported revenues in the third-quarter ending in May climbed 9.8% to $254.52 million from a year ago period.

Net income in the quarter soared 19.2% to $61.4 million or $1.45 per diluted share compared to $51.5 million or $1.21 from the same quarter last year.

FactSet forecasted revenues for the fourth-quarter in the range of $259 million to $263 million and diluted earnings per share between $1.46 and $1.48.

Gap Inc (GPS) increased 1.4% or 53 cents to $38.73 after the apparel retailer said it may close about 175 U.S. specialty stores in North America over the next few years, including 140 this year and estimated annualized sales loss of approximately $300 million.

Gap said it plans to close some stores in Europe and did not specify the number of closure.

The retailer maintains its full-year earnings forecast between $2.75 and $2.80 a share.

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