Tyco International to Tie Up with Johnson Controls

Stocks at the top of the SPDR S&P 500 ETF (SPY) on Monday, January 25, 2016, were Tyco International (TYC), Newmont Mining (NEM), and Wynn Resorts (WYNN). These stocks rose 11.6%, 5.9%, and 3.1%, respectively, on that day.

The following graph shows the stock price movement of Tyco International (TYC) and Johnson Controls (JCI) since December 2015.

Tyco International (TYC) and Johnson Controls (JCI) revealed on Monday that the two are going to merge. The news raised TYC stocks that day, while JCI fell 3.9%. The combined company is valued at $36 billion. The deal will shift JCI’s headquarters to Ireland for tax purposes.

TYC has a beta value of 0.9. Since it’s less than 1, it implies that the stock is less sensitive to market movement. The stock’s trailing five-day return was 12.7%. After news of the merger agreement, the trading volume for the stock soared to 23,940,450 stocks from the previous day’s volume of 2,224,527 stocks. The stock has seven “buy,” eight “hold,” and no “sell” recommendations. S&P (Standard & Poor’s) has rated the stock “A-” with a stable outlook.

Stocks at the bottom of SPY on January 25 were Denbury Resources (DNR), Chesapeake Energy (CHK), and Devon Energy (DVN). These stocks yielded -24.6%, -16.0%, and -11.2%, respectively, on January 25, losing ground on the back of the retreat in oil prices.

Looking at other key stocks, Twitter (TWTR) fell 4.6% on the news of four senior executives leaving the company. The news was announced by Twitter’s chief executive officer Jack Dorsey.

Stocks of homebuilder D.R. Horton (DHI) fell 4.7% after the company reported lower-than-expected quarterly revenue. Home sales fell in all US regions except the Southeast.

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