Closing Bell: LIVE MARKETS BLOG

 | Mar 12, 2018 | 4:05 PM EDT
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Closing Bell

Markets weren't able to carry over the momentum from a strong close last week and had a mixed performance on Monday. 

The Dow Jones Industrial Average led the markets lower, falling 0.62%, or 157 points, to close the day at 25,178, while the S&P 500 fell 0.21%, or 4 points, to 2,783. The Nasdaq was the lone major index to have a positive day, rising 0.36%, or 28 points, to 7,588.


Apple Purchases Digital Magazine Service Texture

Apple Inc. (AAPL) announced that it is purchasing digital magazine service Texture.

Texture lets users subscribe to more than 200 digital publications for $9.99 a month. Publications have reported losing traffic after gatekeepers Facebook Inc. (FB) decided to change its algorithm to feature fewer posts from publications on user timelines. 

Apple's involvement in the digital magazine space could be a boon for publishers. 

"We're excited Texture will join Apple, along with an impressive catalog of magazines from many of the world's leading publishers," said Texture's services executive Eddy Cue. "We are committed to quality journalism from trusted sources and allowing magazines to keep producing beautifully designed and engaging stories for users."


Broadcom Announces Moving Date for New HQ

Singapore-based chipmaker Broadcom (AVGO) announced that it will complete its move to the U.S. by April 3, two days before Qualcomm (QCOM) shareholders are scheduled to vote on whether to approve the Broadcom's hostile $117 billion bid for the company. 

The company originally planned to complete the move by May 6, but moved the date up to entice shareholders to vote for pro-sale board members who are in favor of the sale. 

Monday the U.S. Treasury's Committee on Foreign Investment in the United States said that it confirmed national security concerns over the deal.

Qualcom is instrumental in providing 5G wireless capabilities and U.S. officials are concerned about letting Singapore-based Broadcom oversee that technology.


U.S. Raises National Security Concerns Over Broadcom Proposed Takeover of Qualcom

Broadcom's (AVGO) proposed $117 billion hostile takeover of Qualcom (QCOM) hit another snag Monday after the U.S. Treasury's Committee on Foreign Investment in the United States said that it confirmed national security concerns over the deal. 

Qualcom is instrumental in providing 5G wireless capabilities and U.S. officials are concerned about letting Singapore-based Broadcom oversee that technology. 

Broadcom has tried to ease regulatory concerns by proposing a $1.5 billion fund to develop the network and train U.S. workers. However, the CFIUS has concerns that Broadcom will allow the U.S. 5G network fall behind that of other countries. 

Broadcom's shares were up 3% Monday while Qualcom fell slightly in trading. 


Oclaro Shares Spike After Being Purchased for $1.7 Billion by Lumentum

Optical components manufacturer Oclaro (OCLR) was up more than 26% Monday after optichs tech firm, and rumored parts supplier for Apple's Face ID technology, Lumentum (LITE) purchased the company for $1.7 billion. 

The cash and stock deal was purchased for $9.99 per share, consisting of $5.60 in cash and 0.0636 shares of Lumentum common stock for each share of Oclaro. The deal represents a 27.3% premium to Oclaro's closing price on Friday. 

Lumentum shares were up 5.7% in trading Monday morning. 


Tesla Temporarily Shut Down Model 3 Production in February

Tesla (TSLA) temporarily stopped production of its budget Model 3 sedan for a week in February as the company sought to improve the automated systems that help produce the vehicle, the company said in a. 

"Our Model 3 production plan includes periods of planned downtime in both Fremont and Gigafactory 1," a Tesla spokesman said in an emailed statement to Bloomberg. "These periods are used to improve automation and systematically address bottlenecks in order to increase production rates. This is not unusual and is in fact common in production ramps like this."

Tesla is targeting a weekly Model 3 production rate of 2,500 vehicles by the end of March with that number doubling to 5,000 per week by the end of June. 


Warren Buffett to Reward Perfect NCAA  Bracket with $1 Million Prize

Berkshire Hathaway (BRK.B) CEO Warren Buffett will give the lucky employee who creates a perfect bracket for the NCAA basketball tournament $1 million.

If no one makes all of the right picks, Buffett will give $100,000 to whoever can keep their bracket perfect for the longest amount of time. 

Buffett will up the top prize to $2 million if a university from his home state of Nebraska wins the whole tournament. The NCAA men's basketball tournament begins March 15. 


Harvey Schwartz to Retire from Goldman Sachs Next Month

Goldman Sachs (GS) Co-Chief Operating Officer Harvey Schwartz will retire from the bank next month, Goldman said Monday, clearing the way for Co-COO David Solomon to assume the role of CEO-in-waiting. 

Schwartz will officially retire on April 20. 

The Wall Street Journal reported that current CEO Lloyd Blankfein will retire as soon as the end of 2018. Blankfein took to Twitter this weekend to cast doubt on the report, but he did not deny its validity outright. 

It's the @WSJ's announcement...not mine. I feel like Huck Finn listening to his own eulogy.

— Lloyd Blankfein (@lloydblankfein) March 9, 2018

Dropox Sets Valuation Target Between $7 billion and $8 billion

Web storage company Dropbox Inc. said that it expects to debut with a valuation between $7 billion and $8 billion, in what is gearing up to be one of the largest tech IPO's in recent history. 

The company expects its shares to trade at a price between $16 and $18 per share, the midpoint of which values the company at $7.4 billion based on a fully diluted share count. 

Dropbox hopes to raise $612 million from the offering price and said that it will receive proceeds of $529.7 million.

Salesforce.com (CRM) , which has been an investor in the company, will serve as the anchor for the IPO and will purchase $100 million of the shares being offered in a private placement. 


Spotify Sets Debut for April 2, Reports Say

Spotify Technology SA will debut publicly on the New York Stock Exchange on April 2, sources familiar with the company's plans told Bloomberg.

Spotify will offer its shares through a direct listing and will not issue any new shares or raise any money through its IPO. Existing shareholders will instead offer their shares to the public.

Spotify, which has established a valuation higher than $20 billion, has scheduled an investor day for March 15. The company reported revenue of $5 billion in 2017, but its losses widened during the year due to royalty payments for the music content it hosts. 


Saudi Aramco Reportedly Delays IPO Until 2019

Saudi Aramco has told British officials that it will delay its record breaking initial public offering until 2019, the Financial Times reported. 

The previous target was for a public listing by the second half of this year, but preparedness for the offering as well as a willingness for a simultaneous or sequential flotation on a foreign exchange is now in question, according to FT. 

The Saudi government-backed company told CNN last week that it had concerns about a $100 billion listing in New York, though New York and London are still considered to be front-runners to host the company's international listing. 


Premarket

Markets were looking to build on a strong close to trading last week as futures contracts traded in the green ahead of the opening bell Monday. 

S&P futures were rising 0.25%, indicating an open 7 points higher, while Dow futures rose 0.31%, indicating an open 80 points higher, and Nasdaq futures were up 0.49%, indicating an open 35 points higher. 

World markets were in the green for the most part. In Asia, the Hang Seng led the way, climbing 1.9% while the Nikkei jumped 1.65% and the Shanghai Composite rose 0.59%.

In Europe, the FTSE 100 was basically flat while the Dax and CAC 40 rose 0.6% and 0.2% respectively with about four hours left in trading. 

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