Hertz up on rumors of potential Apple partnership; Rite Aid rises on FTC buzz; E&P higher

By Colin Hanner

Chicago, June 26 – Emphasized by the expected lull of the next two weeks in markets, the distressed debt market was tame on Monday, market sources said, led by a handful of issues from Hertz Global Holdings Inc.’s following media reports of Apple Inc. leasing Hertz cars to test its autonomous car fleet.

Yet, overall, traders were “bored” with a week that is expected to be on the “slower side with people taking vacation ahead of the Fourth of July,” a market source said.

“It’s Monday in the summer,” another market source said. “It played pretty honest to that.”

Hertz bonds saw a several-point across-the-board gain in its bonds and an even steeper surge in its equity off a Bloomberg story that hinted a Hertz-Apple partnership could be in the cards, mirroring that of Google parent, Alphabet Inc., and rental car company, Avis Budget Group Inc.

Also on speculation of something better, Rite Aid Corp. was higher after a news report suggested that the Federal Trade Commission will likely approve of a purchase of the drugstore from Walgreens Boots Alliance, a market source said.

Energy names were generally higher as oil continued to gain on Monday following last week’s disastrous run.

California Resources Corp. led the sector with a near-point gain.

Several distressed notables, Frontier Communications Corp. and Valeant Pharmaceuticals International Inc. among them, traded, though volume was small.

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