Stocks on Wall Street Rebound on Merger Monday, Greek Risks Resurface

Nichole Harper
09 Mar, 2015
New York City

Stocks in New York rebounded on Merger Monday. Simon Property launched a hostile offer for the rival Macerich. Alcoa agreed to acquire RTI Metals. GM plans to buy back $5 billion of its stock. European markets declined after Greek proposal fell short of expectations.

[R]1:35 PM New York – Stocks in New York rebounded on Merger Monday. Simon Property launched a hostile offer for the rival Macerich. Alcoa agreed to acquire RTI Metals. GM plans to buy back $5 billion of its stock. European markets declined after Greek proposal fell short of expectations.[/R]

Stocks on Wall Street rebounded after several deals news dominated market sentiment on Merger Monday.

Simon Property announced a hostile takeover attempt to acquire rival Macerich for $22.4 billion including more than $6 billion in debt. RTI International Metals Inc soared more than 36% after the company agreed to be acquired by Alcoa In for $1.26 billion.

In addition, General Motors announced a $5 billion share buyback and activist shareholder Harry J. Wilson will drop his request to win a board seat.

On Wall Street trading, Tollbooth Strategy Index rose 0.3% or 33.71 to 10,659.58.

S&P 500 index gained 6.89 or 0.3% to 2,078.159 and the Nasdaq Composite Index edged up 3.03 or 0.07% to 4,930.71.

Crude oil rose 73 cents a barrel to $50.34 and gold rose $2.30 to $1,166.60 an ounce.

U.S. Movers

Alcoa Inc ((AA)) declined 4.9% or 71 cents to $13.76 after the aluminum producer agreed to acquire titanium supplier RTI International Metals Inc for about $1.5 billion or equivalent of $41 per share.

The transaction is expected to close in three to six months and RTI International Metals, Inc surged 40.9% to $38.45.

Gaming and Leisure Properties Inc ((GLPI)) surged 10% to $3.23 to $35.60 after the property developer offered to buy the real estate assets of casino operator Pinnacle Entertainment Inc for $4.1 billion, including debt.

Pinnacle Entertainment, Inc climbed 15.2% to $31.60.

Simon Property Group Inc ((SPG)) fell 11 cents to $180.60 after the mall real estate developer offered to acquire rival Macerich Co for $22.4 billion in cash and stock, including outstanding debt of about $6.4 billion.

Macerich Co climbed 6.1% to $91.99.

European Markets

In London trading, FTSE 100 index slipped 0.5% or 34.20 to 6,877.60 and in Frankfurt the DAX index rose 0.1% or 17.05 to 11,568.02.

In Paris, CAC 40 index fell 0.4% or 20.57 to 4,943.78.

Balfour Beatty Plc slipped 1.6% to 239.60 pence after the U.K.-based infrastructure developer was appointed as the civil contractor for an integrated team for ten-year Thames Estuary Asset Management Program on behalf of the Environment Agency for about £250 million.

WPP Plc, the U.K.-based advertising company reported revenues in the year ending in December jumped 4.6% to £11.53 billion from £11.02 billion a year ago period.

Net profit in the year climbed 13.8% form a year ago to £1.15 billion compared to £1.01 billion and diluted earnings per share soared to 80.5 pence from 69.6 pence in the same period a year ago.

Asian Markets

Stocks in Tokyo fell and market indexes closed down and the yen traded above 121-mark against the U.S. dollar.

The Asia-wide selloff was sparked after the latest U.S. jobs report suggested improving employment conditions and may lead the Federal Reserve to lift interest rates sooner than expected.

Stocks in Tokyo eased following Asia-wide market selloff after a drop in market indexes in New York.

The yen weakened to the low in the year on the growing speculation that the U.S. Fed may be forced to raise interest rates sooner-than-expected after the latest jobs report suggested improving jobs market.

Electronics makers and auto exporters led the decliners in Tokyo trading today.

The Nikkei 225 Stock Average dropped 180.45 or 0.9% to 18,790.55 and the broader Topix index slipped 9.08 to 1,531.76.

The yen eased and closed at 121.01 against one dollar.

Market indexes in Mumbai plunged 2% following weak markets in Asia and tracking a sharp decline in indexes on Wall Street.

Traders sold stocks in New York on the worries that the U.S. Federal Reserve may be lift rates sooner than expected from the record low rates for more than five years.

Interest rates in the U.S. have hovered near zero since the onset of financial crisis as the central bank ramped up printing money and flooded the financial system for $4 trillion to avert the recession from turning into a depression.

However, the money printing has not come without cost and retirees have suffered the most after the rates declined to zero and wiped out income for most savers.

Indian rupee eased 40 paisa to 62.55 against one dollar.

The Sensex Index declined 604.17 or 2.1% to close at 28,844.78. The CNX Nifty slipped 181 or 2% to 8,756.75.

DLF Limited slid 1.8% to ₹150.85 after the real estate developer plans to restructure development projects worth about ₹15,000 crore and lower debt.

Power Grid Corporation of India Limited fell 3.2% to ₹150.10 after the power transmission company said it plans to invest ₹1,481 crore in various projects in the next 2-3 years.