U.S. indices continued to rise Wednesday, even though personal income as well as personal spending slowed in May. Personal income rose 0.2%, which was slightly below the Bloomberg consensus of 0.3%. Consumer spending rose 0.4%, which was on par with expectations.
Shares of Diamond Resorts International (DRII) skyrocketed more than 23% during midday trading Wednesday on news that Apollo Funds (APO) will acquire the timeshare company that operates more than 350 vacation destinations. Under the deal, Apollo will buy Diamond Resorts for $30.25 per share, or approximately $2.2 billion. The all-cash offer represents a premium of about 26% over Diamond Resorts' closing share price on June 28. The transaction is expected to close over the next few months, and if completed, Diamond Resorts will become a privately held company and its common shares no longer will be listed on any public market.
Southwestern Energy (SWN) shares were down by about 4% during the trading session following the announcement of a large stock offering. The announcement comes after the company refinanced its debt and saw its stock price pop. According to a report by The Wall Street Journal, the Texas-based company sold up to 98.9 million new shares. The deal was originally expected to be about 15% smaller, the Journal reported, but was increased to meet demand for the shares.
Shares of Germany-based Adidas AG (ADS.DE, ADDYY) jumped by more than 2% on the news that the athletic retailer has agreed on a new long-term partnership with Kanye West, saying it is the most significant partnership ever created between an athletic brand and a non-athlete. In a statement, the company said, "Adidas and Kanye West will extend beyond its current lifestyle focus, with the introduction of performance-intended designs, consequently offering options for both sport and street."
Noodles & Co. (NDLS) shares were up nearly 3% midday despite reports of a possible data breach. The company said a recent data security incident may have compromised the payment information of some guests who used debt or credit cards at certain locations between Jan. 31 and June 2, 2016. In a statement, the fast-casual restaurant company said it is working with investigators to determine how the security compromise occurred and what information was affected. It added that the credit and debit cards used at the affected locations are no longer at risk from the malware involved in the incident.
-- Written by Anders Keitz