1:15pm (EST)
The market is slightly lower as Wall Street awaits the start of 2Q earnings after the bell. Alcoa (AA, $10.81, down $0.13) will get things rolling and is expected to report earnings of 12 cents a share. Aluminum prices have been in a downtrend and inventory levels are up so Alcoa could have a hard time meeting expectations.
Elsewhere, Playboy (PLA, $5.67, up $1.63) announced its founder, Hugh Hefner, is seeking to acquire all of the shares of the company he does not already own for $5.50 a pop. This would essentially take the company private but there are other bidders interested in Playboy as an acquisition. FriendFinder Networks could pony up a bid and already owns Penthouse magazine.
In other M&A news, Aon Corporation (AON, $35.44, down $2.90) has agreed to buy Hewitt Associates (HEW, $46.68, up $11.28) for nearly $5 billion in cash and stock. Hewitt shares have surged over 30% on the news while Aon is down over 7% which usually is the case when a company acquires another one.
As we head to press, the Dow is down a 6-pack and is at 10,192 while the S&P 500 is off by 2 points to 1,076. The Nasdaq is lower by 3 points to 2,193.
We have another NEW TRADE today as we start to build positions for the markets next move. Subscribers, check the Members Area for the details.
We will be back in the morning with a full update.
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