Merger news lifts stocks
by MBJ Staff
Published: September 28,2009
On Monday, the 30-stock Dow Jones industrial average finished higher by 124.17 points, or 1.28%, at 9,789.36. The broad Standard & Poor’s 500-stock index was up 18.60 points, or 1.78%, at 1,062.98. The tech-heavy Nasdaq composite index gained 39.82 points, or 1.90%, to 2,130.74.
On the New York Stock Exchange, 23 stocks were higher in price for every six that declined. Breadth on the Nasdaq was 19-6 positive. Trading was slow on the Yom Kippur religious holiday, notes S&P MarketScope.
Treasuries soared even though stocks advanced. The dollar index was higher. Gold futures fell. Crude oil futures were higher.
A number of big-name companies announced deals.Xerox (XRX ) agreed to purchase Affiliated Computer Services (ACS ). Abbott Laboratories (ABT ) announced plans plans to purchase the pharma unit of Belgium’s Solvay. Johnson & Johnson (JNJ ) boosted its stake in Dutch biotech firm Crucell as well.
The financial, basic materials, and oil & gas sectors were among the market leaders.
Investors are apparently acting on the perception that third- and fourth-quarter earnings will be stronger-than-expected in a clear sign the recession is over and the economic recovery is at hand, says S&P MarketScope.
Wall Street also weighed a Wall Street Journal report Monday that $35 billion in support of state and local housing agencies will be committed by the White House to provide mortgages to low-income earners.
There were no significant economic reports released Monday. Traders were awaiting Tuesday’s reports on the August S&P/Case-Shiller 20-city home price index and the Conference Board’s September consumer confidence Index.
Later in the week, Wall Street will get news on the health of the recovery with the final second-quarter U.S. gross domestic product (GDP) revision Wednesday, which S&P sees down 1.3% vs. the 1.0% drop reported in the preliminary reading.
On Thursday, personal consumption expenditures for August are expected to rise 1.0% and weekly initial jobless claims are seen remaining unchanged at 530,000.
The main event, data-wise, will be the releases of the September employment report on Friday. S&P sees nonfarm payrolls down 160,000 on the month, vs. a decline of 216,000 in August.
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- UMMC reaching out after death of high school football player
- Former Godwin CEO Danny Mitchell dies at 66
- MDOT: Work on I-269 is on schedule, several phases at halfway point
- Margaritaville owner files for bankruptcy before landlord hearing
- Delta Council says condition of Highway 6 'of crisis dimensions'
- Northrop Grumman lands $354M Air Force contract for Global Hawks
- Severstal completes the sale of Columbus plant to Steel Dynamics
- Another marker going up on Mississippi Country Music Trail
- More school districts join MAEP lawsuit brought by Musgrove