EU Summit Sparks Optimism; Exxon Net Rises 2%

Arthi Gupta
31 Jan, 2012
New York City

The U.S. indexes gained on optimism of a resolution to the Greek debt-swap deal. McKesson agreed to acquire private label and drug franchise retail business of Canada based Katz Group for C$920 million. Exxon quarterly net rose 2%.

[R]10:05 AM New York – The U.S. indexes gained on optimism of a resolution to the Greek debt-swap deal. McKesson agreed to acquire private label and drug franchise retail business of Canada based Katz Group for C$920 million. Exxon quarterly net rose 2%.[/R]

U.S. indexes and global markets traded higher after European leaders agreed to a new fiscal compact and accelerated the setting up of the rescue funds.

The new fiscal compact calls for a higher monitoring from the central bank and a tighter budgetary control to meet lower debt guidelines. The compact will become effective across the euro zone as soon as 12 nations ratified it.

The Czech Republic joined the UK in dissenting from accepting the new fiscal compact that was approved by the rest of 25 nations in the European Union.

The leaders also finalized the setting up of the bailout fund but did not agree on its size and how it will be financed.

Yesterday, traders were jittery after Portuguese bond yields soared on worries that the country may require a second bailout to avoid a bankruptcy.

Nokia Siemens, a joint venture between Finnish mobile phone maker Nokia Corp. and German telecom company Siemens AG, plans to cut 2,900 jobs in Germany and 1,200 in Finland, according to several media reports.

In Asian news, Japan''s industrial output surged to 4% in December, following a 2.7% drop in November, according to the latest updates from the Ministry of Economy, Trade and Industry.

McKesson to Acquire Drug Trading, Medicine Shoppe

McKesson agreed to acquire Drug Trading Company Limited and Medicine Shoppe Canada Inc. for C$920 million from Canada''s Katz Group.

AngioDynamics to Buy Navilyst Medical

AngioDynamics, a maker of medical devices for vascular access, surgery, peripheral vascular disease and oncology agreed to acquire privately-held Navilyst Medical in a transaction valued at $372 million based on yesterday''s closing stock price of $14.20.

Earnings Review

Biogen Idec Inc. ((BIIB)), the biotechnology firm reported fourth quarter revenues rose 9% to $1.31 billion from $1.22 billion in the same quarter last year. Net income in the quarter climbed 25% to $300.24 million or $1.22 per diluted share compared to net income of $240.28 million or 99 cents per share in the prior-year quarter.

Total revenues in 2011 increased 7% to $5 billion from $4.7 billion in 2010. Net income for the year increased 23% to $1.2 billion.

Eli Lilly and Co. ((LLY)), the drug maker reported fourth quarter total revenue slipped 2% to $6.05 billion from $6.19 billion in the prior year. Net income for the quarter declined 27% to $858.2 million or 77 cents per diluted share compared to net income of $1.17 billion or $1.05 per share in the prior year.

For fiscal year 2011, revenue improved 5% to $24.29 billion from $23.08 billion. Annual net income declined 14% to $4.35 billion or $3.90 per share from $5.07 billion or $4.58 per share in the prior year.

Exxon Mobil Corporation ((XOM)), the energy explorer reported fourth quarter total revenues and other income rose 15.6% to $121.61 billion from $105.19 billion in the comparable period a year earlier. Net income in the quarter grew 2% to $9.40 billion or $1.97 per diluted share compared to net income of $9.25 billion or $1.85 per share a year ago.

Honda Motor Co., Ltd. ((HMC)), the Japanese automaker reported third quarter net sales and other operating revenue dropped 8% to 1.943 trillion yen from 2.11 trillion yen in the previous year.

Net income for the quarter plunged 41.3% to 47.6 billion yen from 81.1 billion yen in the prior year.

Banco Santander said its December quarter profit plunged 98% to €47 million and for the year the net income declined 35% to €5.35 billion. In the quarter, the Spanish bank set aside €1.8 billion to cover losses in Spanish real estate and additional €600 million to cover losses in Portugal.