Buyers In Control

123jump.com Staff
30 Nov, -0001
New York City

Positive earnings from Time Warner, Interactive Corp, Legg Mason, Cigna, and BAT kept the market momentum. $31 share offer from Kerkorian helped the rumour mill to call for split in GM business. American Tower to acquire SpectraSite for $3.1 B and Fresenius Mediacal to buy Renal Care for $4 B.

Yesterday's hike of 25 basis point interest rate for many investors was a reason a to feel at ease. Many investors were worried that the Fed may tighten more and fast and in the process may kill the tepid economic recovery.

The news of Kirk Kerkorian's Tracinda Partnership offering $31 a share for GM shares and increasing its stake from 3% to more than 8% sent GM stock soaring in the morning. The spillover effect was felt in the entire auto sector. Shares in GM, F, Visteon, Delphi closed higher.

The positive earnings news continue to impress the market. SPX Corp, Legg Mason, Interactive Corp, Cigna, BAT, Allianz all reproted better than expected earnings.

Separately U.S. treasure said that it may reintroduce 30 year bond. Since the discontinuation of the bond in Oct 2001 the federal debt has gone up 30% to $4.7 trillion, yes, not billions.

On the merger front American Tower has agreed to buy SpectraSite for $3.1 billion and Fresenius Medical Care will acquire Renal Care for $4 billion.

Shares in Brazil were up more than 3% and Mexcian shares traded higher. Companies in both countries continue to report good earnings.


S&P – 1.25% Up
Nasdaq – 1.51% Up
Dow – 1.24% Up


In Other News

Germany's financial services company Allianz, reported 1Q profit up 30%.
Gold closed at $430 up $2.30 an ounce and silver up 13 cents to $7.013 an ounce.
Brazilian stocks closed up 3% and Mexican peso up 10.9666 to a dollar highest in ten months.
UK shares closed up 0.5% after a volatile session ahead of general election tomorrow.
In a volatile trading day in the NY oil market after the inventory data release oil closed higher at $50.13 up 63 cents.


Earnings Headlines

Time Warner reported 1Q profit of 18 cents vs. 15 cents a year ago on 3% revenue increase.
Dean Foods, the largest dairy and milk products company, reported 1Q profit of 43 cents same as a year ago and raised the 2005 guidance from $2.20/30 to $2.28/33.
Interactive Corp reported 1Q profit of 9 cents vs. 5 cents a year ago on 14% jump in revenue.
CMS Energy, integrated energy company and natural gas transporter, reported 1Q profit of 74 cents vs. loss of 6 cents a year ago.
Sempra Energy, San Diego utility company reported 1Q profit of 92 cents vs. 85 cents a year ago on stronger performance at its California operations.
Legg Mason, reported 4Q profit of 98 cents vs. 80 cents a year ago on 19% revenue growth.
Cigarette maker BAT reported 1Q profit jumped 24% on strength in all sectors except in America-Pacific region.
Cigna, health insurer, reported adjusted 1Q profit of $2.24 vs. $1.79 a year ago. The company plans to layoff of 17,000 people in 2005.