Weak Oil Overshadows Deals on Wall Street

Nichole Harper
13 Nov, 2014
New York City

Stocks market indexes traded lower after crude oil extended five month losses with 3% decline. Proctor & Gamble agreed to sell Duracell business to Berkshire Hathaway for $4.7 billion. Hasbro is in talks to buy Dreamworks SKG. Walmart Stores reported better than expected results.

[R]12:55 PM New York – Stocks market indexes traded lower after crude oil extended five month losses with 3% decline. Proctor & Gamble agreed to sell Duracell business to Berkshire Hathaway for $4.7 billion. Walmart Stores reported better than expected results.[/R]

Stocks on Wall Street traded lower on the weakness in energy stocks and small cap companies and Proctor & Gamble agreed to sell its Duracell business to Berkshire Hathaway and Wal-Mart Stores reported better than expected results.

In stock market trading, Tollbooth Index rose 0.1% or 10.05 to 9,841.54.

S&P 500 index slid 1.99 or 0.1% to 2,036.28 and the Nasdaq Composite Index slid 0.42 or 0.01% to 4,674.88.

For the year, S&P 500 index has advanced 10% and the Tollbooth Index has gained 9%.

U.S. Movers

Berkshire Hathaway Inc, the insurance company agreed to acquire the Duracell battery business from Procter & Gamble Co. for $4.7 billion.

Under the terms, in exchange for recapitalized of Duracell that include $1.7 billion in cash at closing, P&G will receive its Berkshire Hathaway shares valued $4.7 billion.

The transaction is expected to close in the second-half of the next year.

Hasbro Inc ((HAS)) plunged 4.7% or $2.73 to $54.74 after the leisure products provider said it is in talks to acquire DreamWorks Animation SKG Inc.

Shares of Dreamworks Animation SKG Inc surged 16.7% to $26.10.

Wal-Mart Stores, Inc ((WMT)) climbed 3.5% or $2.79 to $81.98 after the retail stores operator reported total revenues in the third-quarter ending in September jumped 2.9% to $119 billion from a year ago period. U.S. comparable store sales increase 0.5% and sales from Sam''s Club rose 0.4%.

Net income in the quarter slid 0.4% to $3.71 billion or $1.15 a diluted share compared to $3.73 billion or $1.14 from a same quarter last year.

European Markets

In London trading, FTSE 100 index rose 0.1% or 9.86 to 6,620.90 and in Frankfurt the DAX index added 0.2% or 19.32 to 9,230.28.

In Paris, CAC 40 index slid 0.08% or 3.15 to 4,176.73.

In the European corporate news, Ahold net climbed 8% to €178 million. SABMiller profit soared 15% to $2.1 billion. Iliad revenues in the third-quarter soared 30% to €416 million.

RWE net loss narrowed to €30 million and 7% decrease of revenues. Symrise profit surged 26% to €176 million.

Koninklijke Ahold N.V, the Netherlands-based retail group said net sales in the third-quarter ending in September rose 1.9% to €7.47 billion from €7.33 billion a year ago period.

Net income in the quarter climbed 7.9% from a year ago to €178 million compared to €165 million and diluted earnings per share increased to €0.20 from €0.16.

Ahold USA net sales in the quarter improved 1.6% to €4.5 billion and in the Netherlands net sales rose 1.4% to €2.60 billion and in Czech Republic sales surged 18.7% to €367 million from a year ago.

Symrise AG, the Germany-based fragrances and flavors manufacturer said group sales in the nine-month ending in September soared 9% to €1.53 billion from €1.40 billion a year ago period.

Net income in the period surged 26% from a year ago to €175.9 million compared to €139.9 million and diluted earnings per share climbed to €1.42 from €1.18.

Asian Markets

Stocks in Tokyo closed higher and the Nikkei surged ahead with foreign investors preferring to invest in the index than in the broader index of larger and smaller companies.

The Ministry of Economy, Trade and Industry said revised industrial output in September climbed 2.9% sequentially, faster than the 2.7% estimate.

The Nikkei 225 Stock Average jumped 195.74 or 1.1% to 17,392.79 and the broader Topix index gained 12.46 to 1,389.51.

The yen closed at 115.83 against one dollar.

Ministry of Finance said foreign investors purchased net of 2 trillion yen or $17.3 billion of Japanese stocks in the two-week period ending on November 7.

In Mumbai trading, the Sensex Index fell 68.26 or 0.2% to close at 27,940.64. The CNX Nifty dropped 25.45 or 0.3% to 8,357.85.

Bharat Petroleum Corporation Limited, the central government controlled oil marketing company said net in the second-quarter plummeted 50.1% to Rs 464.20 crore.

Total revenues nearly edged up 0.1% to Rs 62,280.28 crore.

Mangalore Refinery and Petrochemicals Limited, the petroleum products supplier said net in the second-quarter swung to loss Rs 951.47 crore compared to a profit of Rs 235.77 crore a same period last year.

Net revenues dropped 14.3% to Rs 16,101.42 crore.

Oil and Natural Gas Corporation Limited, the oil explorer reported net in the second-quarter advanced 9.6% to Rs 2,068 crore and revenues jumped 12.9% to Rs 11,362 crore.