Stocks finished the session mixed on Monday as investors weighed news of Adobe Systems’ $3.4 billion buy of Macromedia against disappointing first-quarter earnings from 3M Co.
The Dow Jones Industrial Average ended the day down 16.26 points, or 0.2 percent, at 10,071.25. The Nasdaq Composite Index snapped a three-day losing streak, closing up 4.77 points, or 0.3 percent, at 1,912.92. The S & P; 500 added 3.36 points, or 0.3 percent, at 1,145.98.
Software maker Adobe Systems Inc. agreed to buy multimedia software firm Macromedia Inc. for about $3.4 billion in stock, to bolster its presence in the market for creating and distributing digital documents. Under the terms of the deal, Macromedia shareholders will get 0.69 share of Adobe, worth $41.86 as of Friday’s close, for each Macromedia share.
3M Co. fell $4.96 to $75.90 despite posting a 12 percent hike in quarterly profits. The industrial conglomerate’s gains beat analysts’ expectations by 2 cents per share, but its revenues were less than Wall Street had hoped for.
Among local movers, East West Bancorp Inc. gained 6.1 percent to close at $33.82 after the San Marino-based holding company’s stock was raised to “buy” from “hold” by analyst Brian Conn at Sandler O’Neill & Partners LP.
And Cogent Inc. rose 2 percent to $23.28 after the South Pasadena-based firm’s stock was upgraded to “buy” from “neutral” by analyst Joel P Fishbein Jr at Janney Montgomery Scott LLC.
On the down side, shares of Rotonics Manufacturing Inc. lost 13.7 percent to close at $4.10 after the Gardena-based plastic products processor reported net income of $339,800 (3 cents per diluted share) for the third quarter ended March 31, compared with $375,700 (3 cents) for the like period a year earlier. Revenue rose to $10.9 million from $10 million in the comparable year-ago period.
And Grill Concepts Inc. sank 16.7 percent to $2 after the L.A.-based casual dining restaurant chain said its stock is in danger of being delisted from the Nasdaq due to its failure to file its Form 10-K annual report on time. The company said the Nasdaq will delist it at the opening of business on April 25 unless it requests a hearing. Grill Concepts said it intends to ask for the hearing if it is unable to issue its annual report by then.
