Pfizer, Novell, Terra in Deals; Oil Races to $80

123jump.com Staff
02 Mar, 2010
New York City

U.S. stocks barely closed higher at close. Pfizer is prepared to pay

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S. stocks barely closed higher at close. Pfizer is prepared to pay €3 billion for generic drug maker Ratiopharm based in Germany. Hedge fund Elliott Associates offered 21% premium to acquire Novell Inc.[/R]

U.S. stocks traded higher but in the afternoon lost most of the gains. Greece and EU inch closer to terms of the bailout.

Terra industries surged 12% after it received a higher bid from CF Industries that valued the company at $4.73 billion. Pfizer is prepared to pay €3 billion for generic drug maker Ratiopharm based in Germany. Hedge fund Elliott Associates offered 21% premium to acquire Novell Inc.

Seasonally adjusted annual auto sales in February declined to 10.4 million units from 10.8 million in January. Ford domestic sales of 142,285 vehicles surpassed GM sales of 141,951 units. Toyota sales declined 8.7% in the month to 100,027 vehicles.

Staples, Inc led the decliners in the S&P 500 index. Terra Industries surged 12% after it received a higher bid from CF Industries. Fresh Del Monte net up 23% and sales rose 4.9%. Bridgepoint Education, Domino’s Pizza and Dress Barn gained on higher earnings.

European markets rebounded for the second day after Greece is likely to deepen budget cuts. Automakers gained after PSA Peugeot Citroen indicated positive outlook for the year. Luxottica Group fell after earnings declined. Lufthansa reported lower than anticipated loss.

UK stocks closed higher for the third day in a row as commodities continue to rally and sentiment in Europe improve. Greece is inching closer to finalize the terms of bailout with Germany and France and is expected to announce deeper budget cuts. Prudential Plc dropped 20% in two days.

Jobless rate in Japan dropped to 4.9% in January. Household spending increased 1.7% in January. Astella Pharmaceuticals Inc offered $52 a share for OSI Pharmaceuticals.

Markets in Hong Kong and Shanghai traded after commodities eased and resource stocks traded lower. Hong Kong stocks also decreased following weaker than expected earnings from HSBC. Coal and metals stocks declined in Shanghai after coal prices eased 3% in the previous week shipments.

Hong Kong home sales rebounded as investors took advantage of low interest rates. Home sales increased 13% to HK$40.8 billion and number of transactions soared 161% in February from a year ago.

The benchmark index in Mumbai surged 2.1% after January exports increased 11.5% on a rising demand in Europe and expanding sales of jewelry. Manufacturing expanded for the eleventh month in a row. Maruti, Tata Motors, TVS and Bajaj Auto sales surge in February.

Reserve Bank of Australia raises rates to 4%. Australian building approvals fall 7% in January. Retail sales rise 1.2% to A$20.1 billion in January. Tatts Group buys NSW lotteries for A$850 million.

North American Markets

Dow Jones Industrial Average increased 2.19 or 0.02% to a close of 10,405.98, S&P 500 Index edged higher 2.60 or 0.2% to 1,104.49, and Nasdaq Composite Index added 7.22 or 0.32% to close at 2,280.79. Toronto TSX Composite Index increased 100.25 or 0.9% to 11,828.31.

Latin American Markets Indexes

Mexico Bolsa Index increased 289.90 to 32,055.04 and Brazil Bovespa Stock Index rose 551.23 or 0.8% to 66,779.16.

Europe Markets Review

In London FTSE 100 Index closed higher 78.12 or 1.45% to 5,484.06, in Paris CAC 40 Index increased 42.38 or 1.12% to close at 3,811.92, in Frankfurt DAX index higher 63.05 or 1.10% to close at 5,776.56. In Zurich trading SMI increased 28.56 or 0.42% to close at 6,820.04.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 49.78 or 0.49% to 10,221.84, and Hang Seng index in Hong Kong decreased 150.82 or 0.72% to 20,906.11, and CSI 300 index in China lower 13.19 or 0.40% to 3,311.24. ASX 200 index in Australia increased 15.40 or 0.33% to 4,701.90. The FTSE Bursa KL Composite index in Malaysia was higher 4.67 or 0.36% to 1,288.07.

The Kospi Index in South Korea increased 20.54 or 1.29% to close at 1,615.12. SET index in Thailand closed higher 11.82 or 1.64% to 733.19. JSE Index in Indonesia increased 21.92 or 0.86% to 2,576.59. The Sensex index in India increased 343.01 or 2.09% to 16,772.56.

Commodities, Metals, and Currencies

Crude oil increased $0.99 to $79.69 a barrel for a front month contract, natural gas edged up 4 cents to $4.72 per mBtu and gasoline increased 4.19 cents to 219.75 cents.

Soybean future closed up 1 cent to $9.635 a bushel. Wheat futures decreased 1.05 cents in Chicago trading to $5.045 a bushel. Sugar closed up 0.38 cents at 22.64 cents per pound.

Gold increased $16.30 in New York trading to close at $1,134.60 per ounce, silver closed up $0.47 to $16.94 per ounce and copper for the front month delivery increased 5.40 cent to $3.404 per pound.

Dollar edged lower against euro to $1.361 and declined against the Japanese yen to 88.84.

Yield on 10-year U.S. bonds closed up to 3.61% and with 30-year maturities closed higher at 4.57%.