Greek Hopes Lifts Global, U.S. Indexes

Arthi Gupta
21 Jun, 2011
New York City

U.S. indexes gained on optimism of a resolution to the Greek debt crisis. eBay completed acquisition of GSI Commerce for $2.4 billion. Raytheon secured $1.7 billion contract to upgrade Patriot for Saudi Arabia.

[R]9:10 AM New York – U.S. indexes gained on optimism of a resolution to the Greek debt crisis. eBay completed acquisition of GSI Commerce for $2.4 billion. Raytheon secured $1.7 billion contract to upgrade Patriot for Saudi Arabia.[/R]

European indexes gained on optimism of a resolution to the Greek debt crisis.

Greek Prime Minister George Papandreou is seeking a crucial vote of confidence this evening in the Parliament that will be a deciding factor for the second tranche of bailout by the European Union and the International Monetary Fund.

The vote is expected late evening today as the prime minister enjoys a thin majority in the Parliament.

Asian markets rose after worries of Greek debt default eased. Traders are cautious ahead of the U.S. Federal Reserve''s two-day policy meeting, the first after a string of weak economic data in the last six weeks.

Ratings agency Fitch said on Tuesday it would place the U.S. credit rating on “watch negative” if its debt ceiling is not raised by August 2.

“If we reach the second of August without a lifting of the debt ceiling, Fitch would assign a rating watch negative to the U.S. sovereign ratings,” Andrew Colquhoun, head of Fitch Asia-Pacific sovereign ratings, said at a conference in Singapore.

eBay Completed GSI Commerce Purchase

eBay Inc., the online auctioneer completed the $2.4 billion acquisition of GSI Commerce Inc. after GSI shareholders approved the merger last week.

The acquisition of the e-commerce solutions and services provider is expected to boost eBay''s position to provide additional services to merchants.

Foster''s Group Rejects SABMiller Offer

Foster''s Group Ltd., the Australian beer maker rejected an unsolicited and conditional offer from the UK listed brewer SABMiller plc to acquire it for A$4.90 per share in cash or $9.98 billion.

The company rejected the offer and said it “undervalues” the company.

Raytheon Secures Contract from Saudi Arabia

Raytheon Company, the aerospace and defense products manufacturer received a $1.7 billion Direct Commercial Sales contract to upgrade Saudi Arabia''s Patriot Air and Missile Defense System to the latest Configuration-3.

The award includes ground-system hardware, a full training package and support equipment upgrades.

Boeing Wins Order from Malaysia Airlines

Boeing Co. said that Kuala Lumpur-based Malaysia Airlines exercised an option to buy 10 additional Next-Generation 737-800s, valued at more than $800 million at list prices.

Earnings Review

Commercial Metals Company ((CMC)), the steel and metal manufacturer f reported third quarter sales rose 16.7% to $2.1 billion from $1.8 billion in the prior-year quarter. Net income generated in the quarter was $36.2 million or 31 cents a diluted share compared to a net loss of $8.8 million or 8 cents a share last year.

Jefferies Group, Inc. ((JEF)), the global securities and investment banking group stated second quarter net revenues climbed 9% to $727 million from $668 million in the comparable period. Net income in the quarter decreased 3.8% to $80.62 million or 36 cents per diluted share compared to net income of $83.83 million or 41 cents per share last year.

Renren Inc. ((RENN)), the social networking site operator in China reported first quarter net loss narrowed 78.3% to $2.6 million or $0.04 per American Depositary Share compared to a net loss of $12 million or $0.14 per ADS last year.

Walgreen Company ((WAG)), the drugstore chain operator said third quarter sales increased 6.8% to $18.37 billion from $17.20 billion in the previous year. Net earnings in the quarter rose 30.2% to $603 million or 65 cents per diluted share compared with net earnings of $463 million or 47 cents per share last year.