Stock Market News for June 14, 2011 - Market News
June 14 2011 - 5:07AM
Zacks
The benchmarks ended flat on Monday, as mergers and acquisitions
prevented the markets from sliding yet again on euro-zone debt
concerns. Mergers and acquisitions were the major factor
responsible for market movement in a choppy session of trading,
amidst the lack of any economic data.
The Dow Jones Industrial
Average (DJIA) gained 0.01% to settle at 11,952.97. The Standard
& Poor 500 (S&P 500) closed at 1,271.83, after climbing
0.1%. The Nasdaq Composite Index shed 0.2% and ended at 2,639.69,
The Dow and the S&P 500 are up 3.2% and 1.1% year to date,
respectively, but Nasdaq washed out its yearly profit and is down
0.5%. On the New York Stock Exchange (NYSE), Amex and Nasdaq
volumes remained tight at 6.85 billion shares, below the daily
average of 7.59 billion shares. On the NYSE, the advance decline
ratio was 1,344 to 1,674.
The Dow registered a better
performance yesterday, compared with its previous trading day when
only Bank of America Corporation (NYSE:BAC), JPMorgan Chase &
Co. (NYSE:JPM) and AT&T, Inc. (NYSE:T) managed to move higher
among the 30 Dow components. On Monday, advancing stocks
outnumbered the decliners as 19 of the 30 components ended in the
green while the rest settled in the negative zone. Bank of America,
JPMorgan and AT&T were once again the gainers and they surged
1.6%, 1.5% and 0.7%, respectively. Other major gainers included
American Express Company (NYSE:AXP), Kraft Foods Inc. (NYSE:KFT),
Microsoft Corporation (NASDAQ:MSFT), Pfizer Inc. (NYSE:PFE) and
Verizon Communications Inc. (NYSE:VZ) and they were up 1.1%, 1.0%,
1.4%, 1.7% and 1.3%, respectively.
The S&P 500 gained for
just the second time in nine trading days. The S&P 500 had
earlier dropped below its technical level of 1, 300 and experts’
opined that the index might trace back to its March low of 1,250.
On Monday, the index closed almost at the levels it had opened,
while the Nasdaq continued to remain above its 200-day moving
average.
Amidst a lackluster day
devoid of any economic reports, mergers and acquisition news was
the primary factor influencing the markets, though another
downgrade of the Greece’s credit rating limited the gains. As the
earnings season is still a month away, corporate deals will
significantly affect investor sentiments, along with several
economic reports lined up for the week.
Coming to mergers and
acquisitions news, Allied World Assurance Company Holdings Ltd.
(NYSE:AWH) and Transatlantic Holdings Inc. (NYSE:TRH) announced
their merger in a deal worth $3.2 billion. Shares of Allied World
Assurance Company plunged 4.5%, while Transatlantic Holdings soared
9.5%.
Shares of Timberland Co.
(NYSE:TBL) sky-rocketed 44.1% as V.F. Corporation (NYSE:VFC) agreed
to buy the outdoor clothing and footwear company for $2 billion, or
$43 per share. Additionally, Honeywell International Inc.
(NYSE:HON) agreed to acquire EMS Technologies Inc. (NASDAQ:ELMG)
for $491 million, or $33 per share. Shares of Honeywell
International gained 0.3% while shares of EMS Technologies soared
32.3%.
Separately, news of
Wendy's/Arby's Group, Inc. (NYSE:WEN) selling its Arby's Restaurant
Group to private-equity firm Roark Capital Group's, for $430
million, pushed the shares of the former up by 0.9%.
However, optimism from these
deals was negated to a certain extent after Standard & Poor’s,
downgraded Greek debt by three notches to CCC. This makes it the
lowest-rated country in the world in the agency’s rankings.
Standard & Poor’s also warned any restructuring would be
considered default and said: “In our view Greece is increasingly
likely to restructure its debt in a manner that, under the
conditions of any package of additional funding provided by
Greece’s official creditors, would result in one or more defaults
under our criteria”. In such a scenario, S&P would lower the
nation’s credit rating to "selective default," and the ratings on
the country's debt instruments will be lowered to “D”.
ALLIED WORLD AS (AWH): Free Stock Analysis Report
AMER EXPRESS CO (AXP): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
EMS TECH INC (ELMG): Free Stock Analysis Report
HONEYWELL INTL (HON): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
KRAFT FOODS INC (KFT): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
TIMBERLAND CO A (TBL): Free Stock Analysis Report
TRANSATLAN HLDG (TRH): Free Stock Analysis Report
V F CORP (VFC): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
WENDYS/ARBYS GP (WEN): Free Stock Analysis Report
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