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Omar Venerio
Omar Venerio
Articles (1736) 

Tuesday Morning Market Highlights

Markets up, shares of Lumentum fall after acquisition news

US Markets

U.S. stocks were in the green on Tuesday morning, with investors positive on news about additional fiscal stimulus. The Dow gained 0.70% to 30,929, the S&P 500 index jumped 0.70% to 3,788 and the Nasdaq Composite Index was up 0.79%, to 12,903.

Gainers

• Occidental Petroleum Corporation (NYSE:OXY) +2.3%

• Akamai Technologies, Inc. (NASDAQ:AKAM) +0.53%

• McDonald´s (NYSE:MCD) +0.47%

• NiSource Inc. (NYSE:NI) +0.3%

Losers

• NOV Inc. (NYSE:NOV) -7.1%

• Peloton Interactive, Inc. (PTON) -2.4%

• FMC Corporation (FMC) -1.7%

• AutoNation, Inc. (AN) -0.6%

Global Markets

The main European stock markets traded mostly in the green. The U.K.'s FTSE 100 gained 0.11%, France's CAC 40 jumped 0.09%, Germany's Dax advanced 0.25% and Spain's Ibex 35 slid 0.28%.

In Asia, Japan's Nikkei 225 gained 1.39%, India's BSE Sensex rose 1.72%, Hong Kong's Hang Seng rise 2.70% and China's Shanghai Composite was down 0.83%.

Lumentum Holdings buys Coherent in a $5.7 billion deal

Shares of Lumentum Holdings Inc. (NASDAQ:LITE) fell 8.5% on Tuesday in pre-market trading after the company announced it has agreed to acquire Coherent Inc. (NASDAQ:COHR) in a cash-and-stock deal. The transaction, valued at $5.7 billion, consists of Lumentum paying $100 in cash and 1.1851 shares of common stock for each Coherent share.

The companies said in a joint statement that the deal "unites Coherent's leading photonics and lasers businesses, including in the Microelectronics, Precision Manufacturing, Instrumentation, and Aerospace & Defense markets, with Lumentum'sleading Telecom, Datacom, and 3D Sensing photonics businesses, creating a diversified photonics technology company with significantly increased scale and market reach."

The deal is expected to close in the second half of 2021 and generate more than $150 million in annual synergies.

At the end of September, Ken Fisher (Trades, Portfolio) reduced his investment in the stock by 6% to 904,969 shares while Julian Robertson (Trades, Portfolio) sold out the stock.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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