The main benchmark indexes are in green territory. The Dow Jones Industrial Average and the S&P 500 index rallied to trade almost 3% higher, making it the sharpest one-day climb since August 2015.
In Monday trading, shares of The Finish Line, Inc. (FINL, Financial) skyrocketed on news that it will enter into a merger agreement with JD Sports Fashion Plc (JDSPY, Financial). This company will acquire all the Finish Line shares at a price of $13.50 per share in cash in a deal valued at $558 million.
Bill Carmichael, Chairman and lead director of the board of directors said: “With JD, Finish Line achieves immediate value for its shareholders and moves into a stronger position to compete as part of a global enterprise that leads in our industry.”
Further, company CEO Sam Sato said: “We are thrilled to partner with them and look forward to realizing the impact we will have on the marketplace together.”
For JD, the acquisition is an outstanding opportunity to establish its market leading multi-brand proposition in the athletic market, giving it more presence in the U.S.hion and outdoor brands.
USG Corporation (USG, Financial) is another stock with huge upside movement today.
Shares of Microsoft Corp. (MSFT, Financial) rose on Monday, driving the tech sector higher. Analysts at Morgan Stanley raised its price target to $130, a 40% upside potential from current levels.
(Disclosure: The author holds no position in any stocks mentioned).
