U.S. Stocks Rest After 5-Week Surge, Shire to Buy ViroPharma for $4.2 Billion

Nichole Harper
11 Nov, 2013
New York City

U.S. stocks rest after indexes advanced for five weeks in a row and the S&P 500 index has gained the best annual return since 2003. Nasdaq Composite index is up nearly 30%. Retailers were in focus ahead of earnings release this week. KKR in a $1.6 billion deal. Transocean to hike dividend.

[R]12:00 PM New York – U.S. stocks traded sideways after indexes advanced for five weeks in a row and reached a record territory. In the year, S&P 500 index has registered the best annual gain since 2003. Nasdaq Composite index is up nearly 30%. Retailers were in focus ahead of earnings release this week.[/R]

Stocks on Monday traded sideways after market indexes advanced for five weeks in a row and investors anticipated earnings from retailers this week.

For the year so far, market indexes are in the record territory and have clocked the best annual gain since 2003.

S&P 500 index gained 0.75 to 1,771.36 and Nasdaq Composite Index declined 9.15 or 0.23% to 3,910.08.

S&P 500 index has gained 24% in the year so far and Nasdaq Composite Index has added 29.6% in the period.

Market indexes in Europe gained after investors reacted positively to the latest U.S. monthly jobs data on Friday.

In London trading, FTSE 100 index rose 0.3% or 19.58 to 6,728 and in Frankfurt the DAX index gained 0.3% or 24.24 to 9,103.

In Paris, CAC 40 index gained 0.5% or 22.29 to 4,283.

In Asia, markets in Japan advanced after the yen declined 1% but other smaller emerging markets declined on the worries that stronger than expected economic development in the U.S. would pose competition for capital.

Nikkei in Tokyo gained 1.3%, Hang Seng index in Hong Kong advanced 1.4% but Sensex index in Mumbai eased 0.9% after rupee fell more than 1% on the worries that capital inflow will shrink.

Indexes in Australia declined 0.35%, in Seoul fell 0.4%, in Jakarta dropped 0.9% but in Thailand rose 0.2%.

U.S. Stocks in Review

ImmunoGen, Inc declined 3.7% or 51 cents to $13.13 after the anti-cancer therapeutics developer signed license agreement with Switzerland-based healthcare products maker Novartis AG to develop cancer therapies.

Novartis agreed to pay upfront fee up to $200 million for each permit including the royalties on sales.

Shire Plc jumped 2.1% or $2.78 to $137.13 after the Ireland-based biopharmaceutical company agreed to buy U.S.-based rare-diseases firm ViroPharma Inc. for about $4.2 billion to expand its portfolio to include attention deficit hyperactivity disorder.

KKR & Co. agreed to acquire Brickman Group Ltd for $1.6 billion from Leonard Green & Partners LP.

The landscape maintenance company deal is the second deal in as many months in the industry after Clayton Dublier & Rice LLC agreed to acquire a majority stake in landscape business controlled by Deere & Co for $465 million.

Amazon.com, Inc ((AMZN)) increased 0.6% to $35.258 and the online retailer said it is partnering with the U.S. Postal Service to deliver packages on Sunday.

The retailer said Sunday delivery will be rolled out this year to customers in Los Angeles and New York and the Postal Service plans to expand the service to many regions in the U.S. including Dallas, Phoenix, Houston and New Orleans.

Transocean Ltd ((RIG)) increased 3.8% to $55.49 after the company agreed to increase dividend and cut costs as a part of a deal with activist investor Carl Icahn.

If approved by shareholders, the dividend will be increased to $3 a share from the current $2.24 a share and will cost the company $1.08 billion when counted on 360.6 million outstanding shares.