Crude futures are in the red to start off the week as OPEC continues to squabble on who is going to cut what, making the prospect of a deal seem less likely. Meanwhile, the broader index futures are in the green on the back of yet more M&A news.
In this article, let’s take a closer look at the events causing Apple Inc. (NASDAQ:AAPL), Goldman Sachs Group Inc (NYSE:GS), Alphabet Inc (NASDAQ:GOOG), Baker Hughes Incorporated (NYSE:BHI), and General Electric Company (NYSE:GE) to trend and let’s also examine relevant hedge fund sentiment toward the five stocks.
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It’s official. General Electric Company (NYSE:GE) has agreed to fold its oil and gas unit into Baker Hughes Incorporated (NYSE:BHI) to form a larger, more efficient oil service giant. According to the deal’s terms, Baker Hughes shareholders will get a special one-time dividend of $17.50 in cash per share after the deal closes, and will retain 37.5% ownership of the new combination. GE will retain the rest. Due to the synergies involved, both stocks are in the green today, with Baker Hughes up by 4% and GE rising by around 1%.
44 funds that we track were long Baker Hughes Incorporated (NYSE:BHI) at the end of the second quarter, while 57 were long General Electric Company (NYSE:GE).
Alphabet Inc (NASDAQ:GOOG) is in the spotlight today after Bloomberg reported that the internet giant has assigned Jonathan Rosenberg as a counselor to its Access segment, which is responsible for Google Fiber. Rosenberg is widely regarded as a ‘fixer’ who straightens out troubles in a division. Due to the move, some traders think Rosenberg will push for more fiscal efficiency in the segment, which would ultimately mean higher margins, but possibly lower top-line growth, for Google Fiber. The number of funds in our system with holdings in Alphabet Inc (NASDAQ:GOOG)’s Class C shares fell by 16 quarter-over-quarter to 126 at the end of June, while 135 funds were shareholders of its Class A shares, down by 20 quarter-over-quarter.
On the next page we’ll examine why investors are buzzing about Apple and Goldman Sachs this morning.