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Market Update

Danaher to Acquire Pall for $13.8 Billion, Market Indexes Trend Lower

Author: Nichole Harper
Last Update: 2:58 PM ET May 13 2015

2:55 PM – Market indexes on Wall Street trimmed morning gains and retail sales in April were flat. Danaher Corp agreed to acquire Pall Corp for $13.8 billion in cash. Senate Democrats blocked President Obama’s free trade initiative.

Market indexes on Wall Street opened higher after the release of retail sales and steadily declined and dipped more than three times and traded near the flat line in late afternoon.

Retail sales in April adjusted for seasonality and calendar were unchanged at $436.8 billion from March but jumped 0.9% from a year ago month.

Total retail sales in three months to April increased 1.5% from a year ago period, the Department of Commerce reported.

In a separate report the department said inventories in March rose 0.1% from February to $1,786.2 billion and jumped 2.9% from a year ago.

Sales in March increased 0.4% to $1,309.7 billion from February but declined 2.1% from a year ago.

April import price index decreased 0.3% after declining 0.2% in March and 0.4% in February.

In April, export prices dropped 0.7% following 0.1% increase in March, the Department of Labor said.

On Wall Street, Tollbooth Strategy Index slid 2.89 to 10,661.77.

S&P 500 index edged up 1.16 to 2,100.27 and the Nasdaq Composite Index rose 10.38 to 4,986.52.

Crude oil in New York gained 48 cents to $61.23 a barrel and gold soared $22.20 to $1,214.60 an ounce.

U.S. Movers

Danaher Corporation (DHR) jumped 2% or $1.74 to $87.74 after the medical, industrial and commercial products maker agreed to acquire air and water-filter maker Pall Corporation for about $13.8 billion in cash.

The merged company will split itself into two publicly traded companies after the deal under a different business combination.

Under the terms, shareholders of Pall Corp will receive $127.20 a share in cash, a premium of 28% to its closing stock price on Monday.

The company expects the separation will take place in a tax-free transaction by the end of 2016.

Stocks of Pall Corporation climbed 4.5% to $123.98.

Macy''s, Inc (M) dropped 1.4% or $1.01 to $64.35 after the apparel and accessories retailer reported sales in the first-quarter ending on May 2 slid 0.7% to $6.23 billion from a year ago period.

Comparable store sales in the quarter slid 0.1%

Net income in the quarter declined 13.8% to $193 million or 56 cents per diluted share compared to $224 million or 60 cents from the same quarter last year.

Macy''s forecasted diluted earnings per share for the year between $4.70 and $4.80.

European Markets

European markets returned to calm after the economic growth accelerated in the March quarter and bond market stabilized.

On a quarterly basis, economic growth accelerated to 0.4% in the euro zone, fastest expansion since the second quarter of 2013.

The economic growth data also stabilized the bond market and DAX index edged slightly lower after losing nearly 2% in the previous session.

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