Mergers Drive Market Higher

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

On a quite trading day mergers news dominated the market. Traders were in a positive mood from the last week's news on employment, productivity and today's news on McDonald's same-store-sales. Bristol-Meyers revised earnings downwards after the close.

Merger news dominated in an otherwise lackluster day on the market. The positive sentiment generated from the previous continued the strength in the market all day. However, this was tempered by the oil trading above $52.

Duke energy has agreed to buy Cinergy for all stock deal valued at $9 billion. It will crate one of the top five companies in the U.S. with 5.4 million customers. The combined company will generate revenue close to $27 billion and profit of $1.9 billion and will have total asset of $70 billion.
The deal is not likely to create a wave of mergers in the industry.

A NYSE seat holder filed lawsuit to prevent merger between New York Stock Exchange and Archipelago Holdings. The suit seeks a better deal for the seat holders and claims that NYSE, its chairman and Goldman Sachs undervalued the exchange in the deal.

E-Trade is reported to have made an unsolicited offer for Ameritrade for $5.5 billion. The consolidation in the discount brokerage industry is long overdue where there are still more than 140 discount brokerage houses.

McDonald’s share rose close to 2.8% on same-store sales jump in the U.S. and world-wide. Shares of Research in Motion jumped on the news that 3 million subscribers now use BlackBerry. The company added more than one million subscribers in last seven months.


S&P - 0.64% UP
DOW - 0.38% UP
Nasdaq - 0.63% UP


In Other News

World-wide same Store sale at McDonald’s increased 2.8% and 4.7% in the U.S. and declined from 10.5% and 13.5% in respective regions.

Chile’s April trade surplus surpassed by $1 billion as world prices for wood pulp, copper and salmon rose. Exports form 60% of Chile’s GDP.

For the ninth month in a row Bank of England left interest rate unchanged at 4.75%. Several analysts are looking for lower rates towards the end of the year.

Asian markets closed unchanged in most markets.

Crude oil in NY closed above $52 on supplies and refining capacity worries.


Earnings Headlines

Alcan Aluminum released 1Q profit of 58 cents vs. 28 cents a year ago.

Party City reported 3Q loss of 42 cents vs. 33 cents a year ago on sales decline.

King Pharmaceuticals reported profit of 29 cents vs. loss of 43 cents a year ago.

Edison International, parent of Southern California utility, reported 1Q profit of 61 cents vs. 30 cents a year ago and exceeded 34 cents a share estimates by analysts.

Liberty Media reported profit of 9 cents vs. loss of a cent due to higher revenue.

Hillenbrand, funeral services provider and health care equipment maker, reported 2Q profit of 87 cents vs. loss of 76 cents a year ago.