Stocks rose Monday morning as investors await a busy week of economic data, including inflation and labor market updates, in the coming days.
But before the economic onslaught, several news stories motivated the move on individual stocks to kick off the week on Yahoo Finance’s Trending Stocks page.
Shares of 3M (MMM) rose nearly 4% Monday after The Wall Street Journal reported The company was close to settling hundreds of thousands of veterans’ claims for defective earplugs.
The newspaper reported that 3M will pay $5.5 billion in the settlement.
Andrew Kaplowitz, managing director at Citi, believes the $5.5 billion figure is below the $5 billion to $10 billion range investors were expecting and could be a catalyst for the stock.
“With the potential settlement amount reaching the lower end of expectations, we view this announcement as potentially positive for MMM,” Kaplowitz wrote in a new note on Monday.
“Equally important, we believe that the potential settlement could represent a further step in easing MMM’s legal burden and move away from the litigation noise that has been affecting MMM’s valuation and could, in our opinion, be received favorably by investors.”
3M shares entered Monday’s trading session down nearly 18% year-to-date.
Shares of Chinese electric vehicle maker XPeng (XPEV) rose nearly 2% after the company said it would pay up to $744 million for DiDi Global’s electric vehicle development business.
As part of the deal, XPeng plans to launch a new smart electric vehicle brand. The brand’s first vehicle, the A-class Smart EV, is expected to be released in 2024.
“XPENG’s Class A smart products under the new brand will not only significantly increase our volume, but also accelerate the adoption of our Smart EV technologies in the mass market segment, bringing our technologies to a much broader customer base,” said He Xiaopeng. “. Chairman and CEO of XPENG Corporation In a press release.
Other electric vehicle companies including Tesla (TSLA) and Nio (NIO) have been in the news initially. Nio is expected to report earnings on Tuesday.
Rite Aid (RAD) stock remained on Yahoo Finance’s trend page after news emerged late Friday that the company was preparing to file for bankruptcy.
The stock rose nearly 6% in mid-morning Monday before giving up most of its gains for the day.
A source familiar with the matter confirmed to Yahoo Finance that bankruptcy planning is underway, and part of that plan likely includes closing more than 400 stores.
The US government sued the company in April over its failure to detect what the Justice Department called “red flags” about prescription opioids and other painkillers. Filing for bankruptcy can help mitigate costs owed to claimants in an opioid case as well as reduce costs associated with closing stores.
Revenue in Rite Aid’s fourth quarter, the first quarter of its fiscal 2024 year, was down about 7% from the prior year’s $5.65 billion. Its net loss for the quarter was $306 million.
Shares of the retailer fell more than 50% on the news during the trading session on Friday and are now down nearly 98% over the past five years.
Josh Schafer is a reporter for Yahoo Finance.
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