Market Minute: Delta Shares Set to Soar; IBM Retires Retiree Health Care

Shares of Delta could take off, and major changes are coming to retirement benefit programs at three of the nation's biggest companies. Those stories and more are what's in Monday's Market Minute.

The Dow Jones industrial average (^DJI) snapped a streak of four straight weekly losses, adding nearly 1 percent last week. The Standard & Poor's 500 index (^GPSC) gained more than 1 percent and the Nasdaq composite index (^IXIC) jumped more than 2 percent.

Delta air lines S&P 500 investing stocks market news
Ted S. Warren/AP
Delta Air Lines (DAL) is being added to the S&P 500. That usually gives a boost to the stock, as mutual funds that track the index have to buy it.

IBM (IBM) is moving 110,000 retirees who are eligible for Medicare off of the company's health plan. Instead, Big Blue will pay them to buy policies from health-insurance exchanges, similar to those set up under Obamacare. IBM says the current, traditional structure would require big premium increases.

Reuters reports that Time Warner (TWX) plans to make a similar move.

And the Labor Department has given AT&T (T) tentative approval to fund its pension plan with nearly $10 billion of preferred stock. That exceeds the federal limit on how much company stock can go into these plans, but it would make the plan nearly fully funded -- something many big companies can only dream about.

Procter & Gamble (PG) is raising the price of its Pampers and Luv diaper brands. It will reduce the number of diapers in each package, effectively increasing the price by 5 to 7 percent.

Johnson & Johnson (JNJ) is reportedly looking to sell its Ortho Diagnostics unit. News reports say the blood testing division could be worth around $5 billion. Abbott Labs (ABT), Danaher (DHR) and two European companies -- Roche Holdings and Siemens -- are the major players in the industry, and may be interesting in bidding.

And after years of negotiations, Apple (AAPL) has reportedly worked out a deal for China Mobile to carry the iPhone, including the low-cost model that Apple is expected to introduce this week. China Mobile has 700 million subscribers.

-Produced by Drew Trachtenberg.

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24 Comments

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gizmoprof

IBM is screwing over retirees first, and later, they'll do the same to employees. It is cheaper for them to pay fines for not providing healthcare, than it is for them to force retirees and employees in to these unproven, healthcare exchanges. Shame on IBM.

Employees... don't be lulled into complacency by thinking that "retirement is a long time away"... it isn't, and by the time you retire, IBM and others will have polished their employee rape practices to the point of perfection.

September 09 2013 at 9:04 PM Report abuse rate up rate down Reply
gizmoprof

IBM is just plain greedy. There ought to be laws to protect employees and retirees from this kind of unmitigated, unprecedented, corporate sleeze

September 09 2013 at 9:01 PM Report abuse rate up rate down Reply
wongtpa

Obamacare is changing the face of America to a socialist country on the verge of bankruptcy! How did this failure get elected? Dumb voters!

September 09 2013 at 4:24 PM Report abuse rate up rate down Reply
george3373

BUTT obama said we all will not lose our healthcare or our doctor.
Just one more unitended consequence or was it covertly designed to push us into a one payer system run by the most inefficient organization in our country the federal government.

We are watching in real time the destruction of our healthcare system and the insurance that covers us. Look at how many states only have one insurer quoting now

September 09 2013 at 3:48 PM Report abuse rate up rate down Reply
rosemarienoa

It looks like more casualties of obamacare!!! You were forewarned when this idiot was running for president.....you chose to ignore it & now you pay the price!!! You cant fix stupid!!!

September 09 2013 at 2:01 PM Report abuse rate up rate down Reply
Cindy

My favorite airlines are Jet Blue, Hawaiian Airlines, Lufthansa.
Why?
They provide passengers with the best flying experience possible.

September 09 2013 at 1:27 PM Report abuse +1 rate up rate down Reply
1 reply to Cindy's comment
rosemarienoa

Add Southwest & I am with you!!!

September 09 2013 at 2:02 PM Report abuse rate up rate down Reply
David

Delta is a terrible airlines, they were better off when they were called Northwest! This is a non-service airlines with bad attitude employees. I see their stock going down.

September 09 2013 at 1:24 PM Report abuse +1 rate up rate down Reply
Hi RON

Obama Care is killing the employment picture..... It is his plan ....he is trying for the single payer government run system --- socialism --- everyone has a job--- low wages and subservant to the government. Take a look at some European countries... that is where we are heading!!!!

September 09 2013 at 12:12 PM Report abuse +4 rate up rate down Reply
1 reply to Hi RON's comment
bchrist751

Big Blue is dropping its traditional company provided health care. Thanks to Obama

September 09 2013 at 1:23 PM Report abuse rate up rate down Reply
3 replies to bchrist751's comment
steph3221

Boycot IBM. They slash the health care for the American worker but they can not do it in Europe.for Example Spain. IBM can not change the health care due to Spainish laws. So once again stick it it Our Own People.

September 09 2013 at 11:02 AM Report abuse +4 rate up rate down Reply
nthereoff

thank you ,not going back to school

September 09 2013 at 10:56 AM Report abuse rate up rate down Reply