U.S. Stocks Higher; U.N. Imposes Sanctions on Libya, Unrest Spreads to Oman

Arthi Gupta
28 Feb, 2011
New York City

The U.S. indexes scale higher after personal income and expenditure rose in January. Popular unrest in the Middle East spread to Oman and U.N. imposes sanctions on Gaddafi regime. Blackstone agreed to buy Australia-based Centro''''s U.S. Malls for $9.4 billion. JPMorgan contemplated stake in Twitter.

[R]9:35 AM New York – The U.S. indexes scale higher after personal income and expenditure rose in January. Popular unrest in the Middle East spread to Oman and U.N. imposes sanctions on Gaddafi regime. Blackstone agreed to buy Australia-based Centro''s U.S. Malls for $9.4 billion. JPMorgan contemplated stake in Twitter.[/R]

Stock market indexes opened higher after oil edged lower and tensions in the Middle East and North Africa spread to Oman.

U.S. personal income and expenditure rose lifting the trading sentiment in the early trading but European markets edged lower and markets in Asia closed mixed.

January U.S. personal income rose 1.0% and disposable personal income increased 0.7%. Personal consumption expenditure increased 0.2% in the month. In December personal income increased 0.4%, DPI increased 0.4% and PCE increased 0.5% on revised estimate.

Oman is yet another nation teeming with political discontent that is trending across the Arab nations and North Africa. Several hundreds took to the streets on Sunday demanding political reforms, with the police continuing to use strong-arm tactics and tear gas in a bid to disperse the protesters.

Chinese Premier Wen Jiabao in an on-line session with the Chinese public on Sunday said his government will target an annual gross domestic product growth of 7% for the period 2011 to 2015 and build 36 million affordable homes in the period.

UN Imposes Sanctions Libya

The United Nations Security Council took a unanimous decision to impose sanctions on Libyan government headed by Muammar Gaddafi over its violent clampdown on protesters.

The punitive actions include imposing a comprehensive arms embargo on Libyan government, asset freeze on Gaddafi and his family, and a travel ban on the Gaddafi regime. The Council also recommended referring the situation in the North African country to the International Criminal Court.

The United States repeated its call on embattled Libyan leader Muammar Gaddafi to """"go as soon as possible without further bloodshed and violence.""""

The call was made by Secretary of State Hillary Rodham Clinton at a special briefing on plane before her departure for Geneva, Switzerland, where Foreign Ministers from around the world are gathering today to discuss the crisis in Libya.

Cliff Natural Gets Approval for Merger

Cliffs Natural Resources Inc. said that Consolidated Thompson Iron Mines Limited''s shareholders approved the plan of arrangement for Cliffs to acquire all of the Thompson''s outstanding shares.

Under the plan of arrangement, Thompson''s shareholders will receive C$17.25 in cash for each common share outstanding.

Hong Kong Tycoon Bids for E.ON''s UK Unit

Li Ka-shing, the Hong Kong tycoon is reportedly close to securing a £3.7 billion or $5.95 billion bid for German utility giant E.ON AG''s UK power distribution network. The addition of E.ON''s UK business would give Li control of 290,000 kilometers or 180,000 miles of cable supplying electricity to 30 million British homes.

Equinox Proposes Superior Offer for Lundin Mining

Equinox Minerals Ltd., the Australian mining company said it will make an offer to acquire Canada''s Lundin Mining Corp. for about C$4.8 billion in cash and shares.

Under the offer terms, Equinox proposes to buy Lundin for a combination of cash and Equinox shares for a total consideration of C$8.10 per Lundin share.

JPMorgan Contemplates Acquiring Stake in Twitter

J.P. Morgan Chase & Co., the financial services firm is seeking to acquire a near 10% stake in one of the fastest-growing social networking and microblogging site Twitter Inc., according to reports on Sunday.

Various media reports suggest that the sale values the company as much as $4 billion.

Fujifilm Acquires Merck Biomanufacturing Network

FujiFilm Holdings Corp said it agreed to acquire two makers of bio drugs from Merck & Company. The company acquired all equity interests in UK based MSD Biologics and Diosynth RTP Inc based in North Carolina that were valued at less than $500 million by analysts.

Financial details of the transaction were not disclosed.

Blackstone Agrees to Buy Centro''s U.S. Malls

Blackstone Group, the leverage buyout firm agreed to acquire U.S. shopping centers of Australian real estate investment trust Centro Properties Group for $9.4 billion.

The Melbourne-based company has $8 billion of debt on its U.S. portfolio of 588 properties, comprising neighborhood shopping centers, malls and lifestyle centers located across 39 states.

Ventas Purchases Nationwide Health

Nationwide Health Properties Inc. and Ventas Inc. said that both companies approved an agreement under which Ventas will acquire all of the outstanding shares of NHP in a stock-for-stock transaction valued at $7.4 billion.

Earnings Review

American Water Works Co., Inc. ((AWK)), the water and wastewater utility company said fourth quarter revenues rose 11.1% to $664.5 million from $597.8 million in the same quarter last year. Net income in the quarter increased 10.4% to $40.2 million or 23 cents per diluted share compared to net income of $36.4 million or 21 cents per share reported a year earlier.

Berkshire Hathaway Inc. ((BRK.A)), the insurance to railroad conglomerate reported fourth quarter revenue rose 19.8% to $36.17 billion from $30.2 billion in the fourth quarter of 2009. Net earnings in the quarter climbed 43.1% to $4.38 billion or $2.66 per Class A common share compared with $3.06 billion or $1.97 per Class A common share in the prior-year quarter, helped by revenue growth and investment and derivative gains.

Full-year revenue rose 21.1% to $136.19 billion as against $112.49 billion in fiscal 2009. In fiscal 2010, net earnings gained 61% to $12.97 billion or $7.93 per Class A common share, compared with $8.06 billion or $5.19 per Class A common share a year ago.

Interpublic Group of Companies, Inc. ((IPG)), the advertising and marketing firm reported fourth quarter total revenues increased 11.7% to $2.01 billion from $1.80 billion in the prior-year quarter. Net income in the quarter increased 51% to $195 million or 36 cents per diluted share compared to net income of $129.4 million or 24 cents per share last year.

The company also said its Board authorized a program to repurchase of up to $300 million common stock.

Kaydon Corporation ((KDN)), the supplier of products for the renewable energy industry reported fourth quarter sales dropped 3.6% to $105.0 million from $108.9 million in the year-ago quarter. Net income in the quarter declined 0.9% to $11.3 million from $11.4 million in the year-ago quarter. On a per-share basis, earnings were flat at $0.34.

Medicis Pharmaceutical Corporation ((MRX)), the specialty pharmaceutical company reported fourth quarter total revenues increased 1.7% to $182.12 million from $179.04 million last year. Net income in the quarter declined 38% to $23.87 million or 37 cents per diluted share compared to net income of $38.29 million or 60 cents per share in the previous year.

Public Storage ((PSA)), the real estate investment trust said fourth quarter total revenues f rose 4% to $418.24 million from $402.21 million in the same quarter last year, helped by a 4.6% increase in self-store rental income to $385.67 million. Net income in the quarter increased 3.3% to $121.4 million or 71 cents per diluted share compared to $117.5 million or 70 cents per share for the year-ago quarter.

Total revenues for the full year 2010 increased 1.9% to $1.65 billion from $1.62 billion the prior year. For the full year 2010, net income declined 32% to $399.2 million or $2.35 per share compared to $586.0 million or $3.47 per share for the full year 2009.

Quicksilver Resources Inc. ((KWK)), the independent energy company reported fourth quarter total revenue increased 2.5% to $239.90 million from $234.10 million for the same period last year. Net income in the quarter soared 879% to $318.3 million or $1.77 per share compared to net income of $32.5 million or 19 cents per share in the year-ago period.

Rowan Companies, Inc. ((RDC)), the contract drilling services provider reported fourth quarter revenues grew 14.8% to $458.8 million from $399.8 million in the same quarter last year. Net income in the quarter declined 5.8% to $57.3 million or 45 cents per diluted share compared to net income of $60.8 million or 53 cents per share in the previous year.

Southern Union Company ((SUG)), the company engaged in the gathering, processing, transportation, storage and distribution of natural gas reported fourth quarter operating revenues grew 11% to $670.3 million from $603.7 million in the year-ago quarter. Net earnings in the quarter rose 9.6% to $55.9 million or 45 cents per diluted share compared to net income of $51.0 million or 41 cents per share in the prior-year quarter.

Tenet Healthcare Corporation ((THC)), the hospital operator reported fourth quarter profit net operating revenues increased 1.8% to $2.30 billion from $2.26 billion in the fourth quarter of 2009. Net income in the quarter surged 252% to $74 million or 14 cents per diluted share compared with $21 million or 4 cents per share last year.