Merger-related stocks rise on the prospect of a friendlier deal climate under Trump

On By Littum

Merger-related stocks rose on Wednesday on hopes that the Trump administration will be friendlier to deal activity than the Biden administration has been.

While financial stocks are broadly higher, Discover Financial and Capital One shares are among the leading gainers, up 17.2% and 12.3%, respectively. Discover’s stock led S&P 500 gainers on the day. Regulators have scrutinized their pending combination.

Meanwhile, shares in Capri Holdings are up about 4%. A judge blocked the proposed merger between it and another handbag maker Tapestry late last month after the Federal Trade Commission sued to prevent the deal from happening. Tapestry plans to appeal the verdict.