Merger Activites Lift U.S. Stocks; Global Miners Advance

Bikram Pandey
06 Apr, 2011
New York City

U.S. stocks traded higher on economic optimism and robust merger activities. Resources linked stocks led the gainers after precious metals and crude oil advanced and the dollar weakened.

[R]10:20 AM New York – U.S. stocks traded higher on economic optimism and robust merger activities. Resources linked stocks led the gainers after precious metals and crude oil advanced and the dollar weakened.[/R]

U.S. stocks traded higher in the early trading on the economic optimism and strong mergers and acquisitions activities.

In Europe markets advanced ahead of rate decision tomorrow from the European Central Bank and from the Bank of England. Economists are estimating a small rate hike in Europe and rates on hold in UK.

German industrial orders soared in February lifting industrial stocks in Europe and Switzerland reported higher inflation in the month.

In Asia markets closed mixed with the benchmark index in Japan declining for the second day this week and Australian dollar and stocks gaining.

Mining stocks in Australia, UK, Canada and New York traded higher after gold and silver reached 31-year high as tensions in the Middle East remained high.

Stock Movers

Resource stocks gained after gold and silver edged higher and coal prices increased. Xstrata Plc struck a one year contract with a Japanese utility to sell thermal coal at $130 a ton, 8% higher price than the spot price.

Freeport McMoran ((FCX)) increased 2.7% to $58.17 and BHP Billiton ((BHP)) added 1.1% to $99.44. Southern Copper increased 1.3% to $41 and Newmont Mining declined 03.5 to $56.78.

Peabody Energy Corporation decreased 0.4% to $71.94 and Massey Energy fell 0.8% to $69.52. Arch Coal, Alpha Natural Resources and International Coal Group declined between 0.2% and 0.4%.

MSC Industrial Direct Co ((MSC)) increased 6.4% to after the company said second quarter sales increased 22% to $484.3 million and net soared 63% to 78 cents a share.

Dish Network Corp ((DISH)) increased 0.3% to $24.38 after it agreed to acquire movie rental retailer Blockbuster at an auction for 228 million.

New Oriental Education ((EDU)) gained 8% to $113.3 8 after the China based English language tutor was recommended by analysts in New York and Hong Kong.