12:11 PM EDT, 08/12/2024 (MT Newswires) -- The S&P 500 and the Nasdaq Composite were trading in positive territory late Monday morning to kick off a new week that will feature a critical inflation data release, while the Dow Jones Industrial Average was basically flat.

In company news, KeyCorp ( KEY ) secured a $2.8 billion investment from Bank of Nova Scotia ( BNS ) , also known as Scotiabank, in exchange for a 14.9% stake in the company. The Canadian lender agreed to purchase the pro-forma stake for $17.17 per share, the companies said in separate statements Monday. Scotiabank said it will carry out the investment in two stages: an initial $800 million payment for a 4.9% stake in KeyCorp ( KEY ), and an additional $2 billion investment for a roughly 10% stake. The companies expect the first round of investment to be complete at the end of August, while the second stage is expected to close in Q1 2025, KeyCorp ( KEY ) said. Shares of Scotiabank were down 3.8%, while those of KeyCorp ( KEY ) were up 11.6% around midday.

Starbucks ( SBUX ) and Elliott Investment Management are nearing a settlement that would see a board seat open up for a representative of the activist investor, Bloomberg reported Monday, citing people familiar with the matter. Jesse Cohn, a managing partner at Elliott, is being discussed as the potential Elliott candidate for the Starbucks ( SBUX ) board spot, Bloomberg reported, citing the people, who added that Elliott could seek multiple Starbucks ( SBUX ) board seats. Earlier in the day, CNBC reported that Starbucks ( SBUX ) and Elliott had started settlement negotiations. Starbucks ( SBUX ) shares were up 3.2%.

The US Securities and Exchange Commission is expanding its probe into B. Riley Financial ( RILY ) , investigating its handling of risk disclosures as well as the relationship between Founder Bryant Riley and Franchise Group CEO Brian Kahn, Bloomberg reported Monday, citing people familiar with the matter. The SEC is assessing whether B. Riley adequately disclosed the risks associated with some of its assets, the sources told Bloomberg. Investigators are also seeking information on interactions between Riley and Kahn, whose Franchise Group is one of B. Riley's larger investment holdings, and they are reviewing possible improper trading b other insiders, according to the report. Earlier Monday, B. Riley reported a Q2 preliminary net loss in the range of $14 to $15 per diluted share. It also said it was suspending its common dividend to "prioritize deleveraging." Shares of B. Riley were down 56.5%.

Walt Disney ( DIS ) is planning major expansions at its theme parks over the next decade, the entertainment giant said Sunday. Disney's ( DIS ) Magic Kingdom in Orlando, Florida will get a new villains-themed area featuring two major rides, along with new areas inspired by Pixar's "Cars" and "Monsters, Inc.," the company said. There will also be two attractions for the Tropical Americas expansion, set to open in 2027 at the Animal Kingdom park, also in Orlando. The Avengers Campus at the Disney California Adventure Park will have two new attractions as well, the company said. California Adventure will also add a new "Avatar" experience, based on the second film in the movie franchise, Disney ( DIS ) said. Lastly, the company is adding four new ships to its cruise fleet, which currently has five ships in operation. The new ships are expected to begin operating between 2027 and 2031. Shares of Disney ( DIS ) were up 0.1%.

JetBlue Airways ( JBLU ) said Monday it plans to offer $400 million in convertible senior notes due 2029. The airline expects to grant initial purchasers a 13-day option to buy up to an additional $60 million of the notes. Net proceeds are expected to be used to repurchase a portion of its existing 0.50% senior convertible notes due 2026 and for general corporate purposes, the company said. Separately, JetBlue ( JBLU ) said that it, along with its subsidiary, JetBlue Loyalty, plan to launch a private offering of $1.5 billion in senior secured notes due 2031 and a $1.25 billion senior secured Term Loan B due 2029. Shares of the company were down 18%.

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