Stock Market News: Activist Targets AT&T; Can RH Keep Soaring?
Wall Street opened the week on a relatively calm note, as investors were largely content to play a waiting game to see what will develop on the geopolitical and macroeconomic fronts. As of noon EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 68 points to 26,865. The S&P 500 (SNPINDEX: ^GSPC) rose 4 points to 2,982, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) picked up 8 points to 8,111.
Amid the quiet trading environment, company-specific stories got more attention than usual. AT&T (NYSE: T) found itself the latest project of activist investment company Elliott Management, and suggestions on how it could improve its business helped send the telecom's stock higher. Meanwhile, upscale home furnishings retailer RH (NYSE: RH) will release its latest financial results after the market closes Monday afternoon, and investors hope that the company's turnaround will continue to gain momentum heading into the holiday season.
Shares of AT&T were up nearly 3% after the Paul Singer-led Elliott Management disclosed that it had invested $3.2 billion in the telecommunications giant. That amounts to just over a 1% stake in AT&T, but it's still a substantial position for the hedge fund to take, and Elliott has a number of ideas about changes the company could make which it hopes would cause that investment to grow by 50% or more.
Source Fool.com
