New York markets hit record highs, Cineplex sold
Christmas is a week away, but Monday felt like Santa had arrived. Markets across the board–across the world–were sharply up, following Friday’s news of a phase one trade agreement between China and the United States and upbeat economic news from China. The Dow surpassed its November high, while the S&P and Nasdaq made new record closes. The latter rose nearly a full percentage point on Monday.
Stocks like Tesla drove (pardon the pun) gains, spiking 6.45% to $381.50, just shy of its all-time high reached back in September 2017. Analysts at Oppenheimer said that “expectations for a relatively smooth ramp” for Tesla’s Shanghai factory are increasing, noting photos of Tesla vehicles produced at its in-progress Chinese factory.
Here in Canada, the TSX enjoyed a good Monday as well, surpassing 17,000 though falling short of breaking its record. The biggest news in Toronto was the surprise announcement that UK’s Cineworld (CINE-L) was buying Cineplex for $2.8 billion, including debt. Shareholders will receive $34 per share, which is a 42% premium from Friday’s close. Traded in London, Cineworld rallied 2.47% on Monday. The British stock pays an 8.11% dividend and trades at a PE of 10.61x. Cineplex itself jumped nearly $10. The deal is likely to be approved and would make Cineworld the biggest cinema chain in North America.