Stocks in New York Extend Gains, Kroger to Buy Harris Teeter for $2.5 Billion

Nichole Harper
09 Jul, 2013
New York City

Stocks opened higher on Wall Street after Alcoa reported a quarterly loss but held out optimism for an increase in demand for aluminum in the year. Kroger agreed to buy Harris Teeter Supermarkets for $2.5 billion. Barnes & Noble chief executive resigns.

[R]9:45 AM New York – Stocks opened higher on Wall Street after Alcoa reported a quarterly loss but held out optimism for an increase in demand for aluminum in the year. Kroger agreed to buy Harris Teeter Supermarkets for $2.5 billion. Barnes & Noble chief executive resigns.[/R]

Stocks on Wall Street opened moderately higher after Alcoa reported cautiously optimistic outlook and said global demand for aluminum is set to rise 7%.

On Wall Street, the S&P 500 index gained 0.5% and the Nasdaq Composite Index increased 0.24%.

Kroger, the operator of grocery chain said it agreed to acquire Harris Teeter Supermarkets for $2.5 billion. The deal will increase the grocery store chains reach in three more states to 34.

Barnes & Noble reshuffled its executive ranks and said William Lynch, chief executive of the bookstore chain has resigned. Lynch led the failed effort to launch electronic book reader Nook and e-reader book marketplace. In June, the company said it will no longer make Nook and booked nearly $470 million loss.

European Markets

European ministers agreed to release 3 billion euros to Greece but kept up the pressure to implement reforms and demanded 15,000 government job cuts before the release of next tranche of 8 billion euros bailout.

UK handed over the administration of the London interbank offered rate to the operator of the New York Stock Exchange. The London based British Banker’s Association will no longer manage the interbank rate, the reference rate for trillions of dollars of securities.

Barclays, UBS and Royal Bank of Scotland have been fined more than $2.5 billion for interbank rate manipulation and at least 10 other banks are under investigation.

LVMH Moet Hennessy Vuitton SA agreed to pay 2 billion euros for 80% stake in Italian cashmere and leather luxury goods maker Loro Piana SpA.

UK pound declined 0.6% after manufacturing output in May declined 0.8% from April when production fell 0.2%, the Office for National Statistics said in London today.

European market indexes gained between 0.4% and 0.6% following positive earnings outlook from the U.S. based Alcoa.

Asian Markets

Asian markets traded higher after investors bid up stocks following a surge in overnight trading in New York an in Europe.

Market indexes in Japan soared 2.5% and in indexes in Mumbai, Hong Kong and in Seoul rose 0.5% or more.

Indian rupee edged higher after Reserve Bank of India took steps to curb speculation in derivative trading. The rupee closed at 60.14 against one dollar after falling to a record low to 61.25.

Market indexes in Hong Kong gained after investors took a positive view on China’s announcement to cut off lending to industries that are engaged in speculative activities.