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Today's Stock Market News Driven by AMZN Spat and Tax Inversion Deals By Garrett Baldwin

Stock market news today, August 12, 2014: U.S. stock markets jumped modestly Monday as they continued to recover from a recent reversal. Investors remain guarded about geopolitical concerns in Ukraine, Gaza, and Iraq, although easing tensions in some of those recent hotspots may be giving stocks a lift. The consumer staples led today's gains, propelled by a positive earnings report by Sysco Corp. (NYSE: SYY), which saw shares increase by more 3% after its announcement. Shares of Tesla Motors Inc. (Nasdaq: TSLA) were also up 4.5% after the company received another upgrade from Deutsche Bank AG (NYSE: DB). The post Today's Stock Market News Driven by AMZN Spat and Tax Inversion Deals appeared first on Money Morning - Only the News You Can Profit From .

Stock market news today, August 12, 2014: U.S. stock markets jumped modestly Monday as they continued to recover from a recent reversal. Investors remain guarded about geopolitical concerns in Ukraine, Gaza, and Iraq, although easing tensions in some of those recent hotspots may be giving stocks a lift.

The consumer staples led yesterday's gains, propelled by a positive earnings report by Sysco Corp. (NYSE: SYY), which saw shares increase by more 3% after its announcement. Shares of Tesla Motors Inc. (Nasdaq: TSLA) were also up 4.5% after the company received another upgrade from Deutsche Bank AG (NYSE: DB).

Here's what you should know to make your Tuesday profitable:

  • Digital Standoff: The Wall Street Journal reports that the ongoing dispute between e-commerce giant Amazon.com Inc. (Nasdaq: AMZN) and The Walt Disney Co. (NYSE: DIS) is about more than just product prices. The financial newspaper reports that the companies are in a dispute over current product promotion and product placement on the e-commerce giant's website. According to the report, the two firms have a major disagreement about AMZN's pricing practices, particularly in how the company is poised to lose money now and then in an effort to match the prices of its competition. AMZN has received a wealth of criticism from authors, production houses, and others over their business practices in recent months. Just last week, more than 900 authors, including Pulitzer Prize winners, horror-icon Steven King, and best-seller John Grisham, signed an open letter accusing AMZN of hurting authors working with Hachette Publishing.
  • today's stock market newsIt's Bananas: Shares of Chiquita Brands International Inc. (NYSE: CQB) surged nearly 30% yesterday on news that the company received a buyout offer from Brazilian agribusiness firm Cutrale Group and investment bank Safra Group. The deal comes in the wake of the Obama Administration's admonishing statements about tax inversions and U.S. companies purchasing foreign firms to reduce their tax burden by relocating to other nations. CQB had signed a deal in March to purchase Irish tropical fruit producer Fyffes PLC and planned to relocate operations abroad. Now, that deal is uncertain after this bid from the two companies. If accepted, CQB would sell itself to the foreign company in order to work around any potential laws created to prevent inversions from providing those tax benefits. American companies could simply sell their operations to the highest international bidder to tackle their tax challenge and maximize shareholder value, an unintended consequence of any action by Washington to deter inversion deals through regulation, legislation, or harsh rhetoric.
  • Sell, Sell, Sell: According to multiple reports, U.S. banking giant JPMorgan Chase & Co. (NYSE: JPM) plans to sell 50% of its stake in its asset portfolio owned by its buyout unit One Equity Partners for roughly $2 billion. The purchasers, Lexington Partners LP and AlpInvest Partners, will plan to make One Equity an independent company.
  • Earnings Beat: Shares of Priceline Group Inc. (Nasdaq: PCLN) were up more than 2% on Monday on news that the company beat Wall Street's earnings expectations for the second quarter. The company announced that the summer travel season was off to a strong pace, with Americans using the company's discount services to score better travel deals. The strong earnings report was also a boon for its rival Expedia Inc. (Nasdaq: EXPE), which saw shares gain more than 1.5% on the day.
  • Back in the Black: Shares of telecom giant T-Mobile US Inc. (NYSE: TMUS) slipped nearly 2% on Monday, but bounced back in post-market hours. The company is still under consideration from France's Iliad SA (OTCMKTS: ILIAY) as a potential acquisition target. Last month, ILIAY announced it has taken a $15 billion bid for 56.6% of T-Mobile shares to the target's board.
  • Earnings Reports: Stay tuned for earnings reports from Fossil Group Inc. (Nasdaq: FOSL), Towers Watson & Co. (NYSE: TW), Valspar Corp. (NYSE: VAL), Flowers Foods Inc. (NYSE: FLO), CST Brands Inc. (NYSE: CST), USA Compression Partners LP (NYSE: USAC), Array BioPharma Inc. (Nasdaq: ARRY), and La Quinta Holdings Inc. (Nasdaq: LQ).
  • Today's Economic Calendar: Today's schedule features the NFIB Small Business Optimism Index, the U.S. Treasury Department Budget, and the weekly ICSC-Goldman Store Sales report.

Full U.S. Economic Calendar August 12, 2014

  • NFIB Small Business Optimism Index at 7:30 a.m.
  • ICSC-Goldman Store Sales at 7:45 a.m.
  • Redbook at 8:55 a.m.
  • JOLTS at 10 a.m.
  • 4-Week Bill Auction at 11:30 a.m.
  • 3-Yr Note Auction at 1 p.m.
  • Treasury Budget at 2 p.m.

We're in the midst of a generational bull market, but there will be setbacks along the way. Learn how to protect yourself from volatile markets, and make more money on the recovery...

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The post Today's Stock Market News Driven by AMZN Spat and Tax Inversion Deals appeared first on Money Morning - Only the News You Can Profit From.

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