CVS in $2 Billion Deal, American and US Air Merger Advances

Nichole Harper
27 Nov, 2013
New York City

Stocks on Wall Street gained and initial jobless claims last week declined. Durable goods orders fell in October 2% and volatile commercial aircraft orders plunged 16%. CVS agreed to acquire infusion service provider for $2.1 billion. Bankruptcy judge approved a merger between American and US Air.

[R]1:25 PM New York – Stocks on Wall Street gained and initial jobless claims last week declined. Durable goods orders fell in October 2% and volatile commercial aircraft orders plunged 16%. CVS agreed to acquire infusion service provider for $2.1 billion. Bankruptcy judge approved a merger between American and US Air.[/R]

Stocks on Wall Street and market indexes gained and CVS agreed to a $2.1 billion deal and a bankruptcy judge approved the merger between American and US Airways.

S&P 500 index increased 3.44 to 1,806.19 and the Nasdaq Composite index advanced 17.7 to 4,035.45.

Market indexes in Europe also gained following the advances in New York.

In London trading, FTSE 100 index rose 0.1% or 5.45 to 6,642 and in Frankfurt the DAX index gained 0.4% or 32.80 to 9,323.

In Paris, CAC 40 index increased 0.4% or 17.08 to 4,295.

October Durable Orders Fall

Durable goods orders declined 2% in October from September, the Commerce Department said today.

Businesses were cautious in purchasing big-ticket goods after orders increased 4.1% in September.

The decline in orders in October were led by a16% plunge in commercial aircraft orders.

Durable orders excluding volatile transportation and defense orders decreased 1.2% in October.

Weekly Jobless Claims Fall

Initial claims of weekly unemployment benefits declined 10,000 last week to a seasonally adjusted 316,000, the Labor Department said today. Four-week average declined 7,500 to 331,750.

The pick-up in labor market was visible in the three months to October. In the period, the U.S. economy added 202,000 jobs a month compared to 146,000 in the three months to July.

U.S. Stocks in Review

Analog Devices declined 6% after the electronic chips and systems maker estimated adjusted first-quarter earnings between 44 cents and 52 cents a share, lower than analysts’ expectations of at least 55 cents.

Barnes & Noble gained 5% after the book retailer reported a decline in revenues largely on the weakness in its Nook-device and e-books business. Second quarter revenues in its Nook business dropped 32% to $108.7 million however its retail and college businesses generated healthy $120 million in earnings.

The bookseller added revenue from the retail segment in the quarter declined 7.5% to $921 million and revenue from the college segment decreased 4.6% to $738 million.

CVS Caremark Corp ((CVS)) increased 1% to $66.79 and the drug retailer agreed to acquire Coram LLC from Apria Healthcare Group Inc for $2.1 billion. The purchase of infusion services provider is the largest deal in five years for CVS.

Hewlett Packard gained 9% and traded at a two-month high as the company made progress in its turnaround efforts and reported weak quarterly results but ahead of expectations.