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 Shares of ODP Corp. slipped 1.1% in premarket trading Tuesday, after The Wall Street Journal reported that the office supplies retailer has rejected an unsolicited buyout proposal by rival Staples, which is owned Sycamore Partners. The buyout bid of $40 a share in cash, announced last week, valued ODP at more than $2 billion. The WSJ report, citing a letter it reviewed, said ODP has determined that rather than a sale, it prefers a sale of its retail and consumer-facing e-commerce operations. Staples' latest bid marks the third attempt to acquire its rival, as the WSJ reported. ODP's stock has more than doubled (up 113.8%) over the past three months through Friday, including a 24.1% gain last week, while the S&P 500 has advanced 10.0%.
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Shares of Goldman Sachs Group Inc. rose 2.0% in premarket trading Tuesday, after the bank and brokerage reported fourth-quarter net income that more than doubled and beat expectations by a wide margin, and revenue that also beat forecasts. Net income grew to $4.51 billion, or $12.08 a share, from $1.72 billion, or $4.69 a share, in the year-ago period. The FactSet consensus was for earnings per share of $7.45. Total revenue increased 17.9% to $11.74 billion, above the FactSet consensus of $9.99 billion, as net interest income jumped 32.4% to $1.41 billion to beat expectations of $1.14 billion. Among business segments, revenue increased the most in market making (53%) and investment banking (34%). Within investment banking, equity underwriting revenue nearly tripled (up 195%) to $1.12 billion, above the FactSet consensus of $784.4 million, while debt underwriting rose 68% to $526 million but missed expectations of $583.8 million. Fixed income, currencies and commodities (FICC) revenue grew 6% to $1.88 billion, missing expectations of $2.06 billion, while equities revenue rose 40% to $2.39 billion to surpass expectations of $1.89 billion. The stock has run up 46.3% over the past three months through Friday, while the Dow Jones Industrial Average has gained 9.3%.
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Shares of Bank of America Corp. slipped 0.2% in premarket trading Tuesday, erasing earlier gains, after the bank reported a fourth-quarter profit that beat expectations but revenue that fell short, as global markets revenue rose less than forecast. Net income fell to $5.5 billion, or 59 cents a share, from $7.0 billion, or 74 cents a share, in the year-ago period. The FactSet consensus was for earnings per share of 55 cents. Total revenue declined 10.1% to $20.10 billion, below the FactSet consensus of $20.58 billion, as net interest income fell 15.5% to $10.25 billion to top expectations of $10.24 billion. Consumer banking revenue fell 13.4% to $8.24 billion, above the FactSet consensus of $8.13 billion, while global markets revenue increased 14.1% to $3.91 billion but missed expectations of $4.10 billion. Equities revenue rose 30% to $1.3 billion, while fixed income, currencies and commodities (FICC) revenue decreased 5% to $1.7 billion. Global banking revenue fell less than forecast and global wealth and investment management revenue declined in line with expectations. "In the fourth quarter, we continued to see signs of a recovery, led by increased consumer spending, stabilizing loan demand by our commercial customers, and strong markets and investing activity," said Chief Executive Brian Moynihan. Earlier, the bank said it had authorized a stock buyback program of $2.9 billion through March 31. The stock has rallied 39.2% over the past three months through Friday, while the SPDR Financial Select Sector ETF has climbed 25.7% and the S&P 500 has gained 10.0%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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