Stocks move higher on M&A activity as investors await the outcome of a two-day Federal Reserve Policy meeting. Shartia Brantley reports.
It's official. Twenty-First Century Fox chairman and CEO Rupert Murdoch will step down. His son James Murdoch will replace him on July 1st. Both men will serve as co-chairmen. Deal making activity drove stocks higher as investors await the outcome of a two-day meeting of Federal Reserve policy makers. Coty's shares jumped higher after the cosmetics maker won an auction to buy Proctor & Gamble's beauty business lines worth about $12 billion. Some healthcare stocks rallied on a Wall Street Journal report that United Health has approached Aetna about a takeover, and Cigna had rebuffed Anthem's advances. The Journal also reported that Amazon.com is working on a mobile app that would pay ordinary people to deliver packages en route to their destinations. Morningstar analyst R.J. Hottovy: SOUNDBITE: R.J. HOTTOVY, ANALYST, MORNINGSTAR (ENGLISH) SAYING: "I think, this is actually the next logical step for Amazon and their fulfillment infrastructure. I think, a service like this would dove tail nicely with their existing mobile app as well as the logistics infrastructure they've built out the last couple of years." Investors cheered Gap's move to shut down a fourth of its North American stores over the next few years. Adobe shares dipped in after hour trading despite the company reporting record quarterly revenue. Twitter shares broke below its 52-week low. MKM Partners downgraded the micro blogging service to "neutral" from "buy." The research firm said it sees no catalysts over the next two quarters that would lift sentiment. American Airlines shares fell. The carrier said it'll delay delivery of 35 Airbus A320neo jetliners for several years so it can control capacity growth. Mixed economic data on housing: Housing starts fell last month, but home building permits surged to a near eight-year high. In Europe, investors saw buying opportunities amid the selloff sparked by the Greek debt crisis, driving shares higher. But the FTSE 100 finished flat.