9-17-13 4:52 PM EDT | Email Article
 

By Sue Chang and Saumya Vaishampayan, MarketWatch

 

SAN FRANCISCO (MarketWatch) -- Safeway Inc. had its best day in six months on Tuesday after activist hedge fund Jana Partners disclosed a 6.2% stake in the company.

 

Gainers

 

Safeway (SWY) rallied 11%, its best percentage gain since February. Jana said it bought into Safeway because it believes the shares are unvalued and represent an attractive investment opportunity. Jana also expects to continue having discussions with Safeway's management and board to boost shareholders value, the hedge fund said.

 

In response, Safeway adopted a one-year shareholder-rights plan, or a poison pill, to defend itself against a potential hostile takeover.

 

Facebook Inc. (FB) rose 6% after three sessions of losses. The social-media company got an upbeat write-up from Youssef Squali at Cantor Fitzgerald, who said Facebook is one of the major Internet stocks positioned to benefit from Europe's economic recovery.

 

Abercrombie & Fitch Co. (ANF) gained 2.9%, one of the strongest performers in the S&P 500 (SPX). Nomura initiated coverage of Abercrombie & Fitch at a buy last week.

 

Decliners

 

Bemis Co. (BMS) shares fell 3%. Analysts at J.P. Morgan last week trimmed the company's earnings outlook for the third quarter to a midpoint of 57 cents a share to 63 cents a share from a high end of 60 cents a share to 63 cents a share on higher-than-average exposure to the Brazilian real.

 

International Paper Co. (IP) shares shed 2.6%, making them one of the worst S&P 500 laggards. The company last week announced the closure of its mill in Courtland, Ala., due to a decline in demand for uncoated freesheet in North America. The shutdown affects 1,100 employees.

 

Trending

 

$BBRY: BlackBerry Ltd. (RIMM) climbed 2.3%. The Canadian-based smartphone company has attracted bidders in its effort to sell itself, but they are mostly interested in bidding for parts of the company rather than purchasing it in its entirety, according to a Reuters report last week. Private-equity firms are eyeing BlackBerry's operating system and keyboard-related patents, the report said.

 

$AAPL: Apple Inc. (AAPL), which had lost 10% since its iPhone launch events a week ago, gained 1.2%. The iPhone 5C and 5S will be available at Apple stores Friday morning and also go on sale on Apple's website on Friday at 12:01 a.m. Pacific time, the company said.

 

$MSFT: Shares of Microsoft Corp. (MSFT) rose 0.4%. The software giant on Tuesday raised its quarterly dividend 22% to 28 cents a share and announced a stock-buyback program of up to $40 billion.

 

$TSLA: The long-range electric-car business is heating up, with competition emerging for Tesla Motors Inc. (TSLA). General Motors Co. (GM.XX) said it is creating a model for roughly $30,000 that gets 200 miles on one charge, according to a report in The Wall Street Journal, cheaper than the Tesla Model S, which starts at $70,000. But GM didn't disclose when the car would be available. Tesla shares edged down 0.2%.

 

$DAL: Delta Air Lines Inc. (DAL) gained 0.7%. The stock was raised to an overweight rating from neutral by J.P. Morgan analysts, who also increased the price target to $26 from $22. "It currently does a better job connecting corporate employees and customers than AMR's stand-alone network, in most markets," analysts led by Jamie Baker wrote Tuesday.

 

$HLF: Herbalife Ltd. (HLF) shares rose 3.8%, after hitting a record high earlier in the session. The gains were fueled in part by expectations of an aggressive stock buyback by the nutrition-supplement company.

-Sue Chang; 415-439-6400; AskNewswires@dowjones.com

 

Subscribe to WSJ: http://online.wsj.com?mod=djnwires


(END) Dow Jones Newswires

09-17-13 1652ET

Copyright (c) 2013 Dow Jones & Company, Inc.
Copyright 2014 MarketWatch
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Morningstar - 2013/9/17 - UPDATE: Safeway jumps after Jana discloses stake
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