U.S. Stocks Struggle, Nasdaq Drops NYSE Bid

Bikram Pandey
16 May, 2011
New York City

U.S. stocks traded sideways as commodities declined. Monday merger news included the sale of struggling publisher Primedia Inc for $525 million, SanDisk agreement to acquire Pliant Technology and Nasdaq and ICE dropping their bid for NYSE Euronext.

[R]10:30 AM New York – U.S. stocks traded sideways as commodities declined. Monday merger news included the sale of struggling publisher Primedia Inc for $525 million, SanDisk agreement to acquire Pliant Technology and Nasdaq and ICE dropping its bid for NYSE Euronext.[/R]

Stocks in New York traded sideways in early trading after markets in Asia declined and in the euro-zone struggled. Commodities declined in New York and in London. NYSE Euronext dropped 10% after Nasdaq OMX and ICE dropped its offer.

Separately, a regional survey of economic activities in the New York region showed a decline. The index tracked by the Federal Reserve Bank of New York said the index of economic activities fell to 11.9 from 21.7.

Across the Atlantic, European markets traded lower and the euro gained as finance ministers in the region gathered in Brussels to finalize the 78 billion euros bailout terms for Portugal. Ministers are also expected to discuss the conditions and steps for the additional funds for Greece.

Annual inflation in the euro area rose to 2.8% in April and increased from 2.7% in March. Monthly inflation was 0.6% in April. Compared to a year ago inflation rose to 3.2%.

First estimate of the Euro zone trade deficit in March with rest of the world was €2.8 billion compared to €2.7 billion a year ago month. First estimate for the wider EU27 trade deficit in March was €9.6 billion.

Stock Movers

NYSE Euronext dropped 10% after Nasdaq OMX Group Inc and IntercontinentalExchange Inc dropped its joint bid after the its talks with U.S. regulators were unsuccessful in getting regulatory approval.

Benihana Inc dropped 8% after the operator of Japanese-theme restaurants terminated its sale process.

SanDisk Corp increased 6% after it agreed to acquire the maker of solid-state drives, for corporate data storage, Pliant Technology for $327 million.

Primedia Inc soared 61% to $7 after it agreed to be acquired by private equity group TPG Capital for $525 million or $7 a share. The industry focused publishing group and consumer guides publisher has been struggling to adjust to Internet and generated string of losses in the last decade.