Portfolio Crafter
10-06-2006, 11:21 PM
End of Day Market Summary Monday, 10/9/2006
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Stocks ended higher with the Nasdaq Composite at its best level in five months, as a Fed official's soothing remarks on inflation, a going-private offer for Cablevision Systems and a $6 billion deal in the banking sector placed news of North Korea's nuclear test on the back burner.
Today, the Dow Jones Industrial average closed up 7.60 or 0.06% to 11,857.81, the broader S&P 500 index closed up 1.08 or 0.08% to 1,350.66, and the tech-fueled Nasdaq composite index closed up 11.78 or 0.51% to 2,311.77.
Market breadth was positive. On the New York Stock Exchange, winners beat losers by 19 to 12 on volume of 1.26 billion shares. On the Nasdaq, advancers edged out decliners by 17 to 11 on volume of 1.52 billion shares.
Reports that North Korea claimed it conducted a successful underground nuclear test had an adverse affect on the markets. However, deals including PNC Financial's acquisition of Mercantile Bankshares, provided some market resiliency. Volumes on Columbus day remained relatively low.
San Francisco Federal Reserve President Janet Yellen said that holding interest rates steady "for a time" makes sense as Federal Reserve policymakers try to temper inflation pressures and scrutinize incoming economic data. She stated that inflation is likely to trend downward in the medium term, for several reasons including falling energy prices. These soothing remarks had a positive effect on the markets.
Shares of Google closed up $8.50 or 2% to $429.00, on news that the Web search giant might acquire online video service YouTube Inc. YouTube has about a 46% share of the online video market and more than 100 million videos are downloaded a day on the site. The combination of Google and YouTube could further strengthen Google's dominance in online advertising.
Shares of Cablevision System closed up $2.57 or 10% to $26.50, after the Dolan family offered to buy the remaining shares it does not already own in a deal that value the company at $7.9 billion. This offer would give shareholders $27 per share in cash. This will give the company greater flexibility needed to undertake strategic initiatives and develop the next generation of products and services in a rapidly changing consumer marketplace. The deal would have an enterprise value of $19.2 billion, which includes debt.
Shares of PNC Financial Services closed down $3.20 or 4.4% to $70.40, after it agreed to buy Baltimore-based Mercantile Bankshares Corp. for $6 billion in cash and stock. Shares of Mercantile Bankshares closed up $8.16 or22% to $44.94. The deal represents $47.24 a share.
Citigroup Inc. closed up 3 cents at $51.08, on news that it is considering acquisitions of banks in Taiwan, Turkey, Central America, China and Western Europe. This is a part of a plan to boost the proportion of earnings coming from outside the United States to 60% from 45%. The CEO Chuck Prince also said he expected "progress" before the end of the year on its international deals.
Light sweet crude oil for November delivery closed up 20 cents at $59.96 on the New York Mercantile Exchange. Traders continue to wait for OPEC to confirm a production cut, reportedly pegged at 1 million barrels a day. News of North Korea's test also supported higher prices.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
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Stocks ended higher with the Nasdaq Composite at its best level in five months, as a Fed official's soothing remarks on inflation, a going-private offer for Cablevision Systems and a $6 billion deal in the banking sector placed news of North Korea's nuclear test on the back burner.
Today, the Dow Jones Industrial average closed up 7.60 or 0.06% to 11,857.81, the broader S&P 500 index closed up 1.08 or 0.08% to 1,350.66, and the tech-fueled Nasdaq composite index closed up 11.78 or 0.51% to 2,311.77.
Market breadth was positive. On the New York Stock Exchange, winners beat losers by 19 to 12 on volume of 1.26 billion shares. On the Nasdaq, advancers edged out decliners by 17 to 11 on volume of 1.52 billion shares.
Reports that North Korea claimed it conducted a successful underground nuclear test had an adverse affect on the markets. However, deals including PNC Financial's acquisition of Mercantile Bankshares, provided some market resiliency. Volumes on Columbus day remained relatively low.
San Francisco Federal Reserve President Janet Yellen said that holding interest rates steady "for a time" makes sense as Federal Reserve policymakers try to temper inflation pressures and scrutinize incoming economic data. She stated that inflation is likely to trend downward in the medium term, for several reasons including falling energy prices. These soothing remarks had a positive effect on the markets.
Shares of Google closed up $8.50 or 2% to $429.00, on news that the Web search giant might acquire online video service YouTube Inc. YouTube has about a 46% share of the online video market and more than 100 million videos are downloaded a day on the site. The combination of Google and YouTube could further strengthen Google's dominance in online advertising.
Shares of Cablevision System closed up $2.57 or 10% to $26.50, after the Dolan family offered to buy the remaining shares it does not already own in a deal that value the company at $7.9 billion. This offer would give shareholders $27 per share in cash. This will give the company greater flexibility needed to undertake strategic initiatives and develop the next generation of products and services in a rapidly changing consumer marketplace. The deal would have an enterprise value of $19.2 billion, which includes debt.
Shares of PNC Financial Services closed down $3.20 or 4.4% to $70.40, after it agreed to buy Baltimore-based Mercantile Bankshares Corp. for $6 billion in cash and stock. Shares of Mercantile Bankshares closed up $8.16 or22% to $44.94. The deal represents $47.24 a share.
Citigroup Inc. closed up 3 cents at $51.08, on news that it is considering acquisitions of banks in Taiwan, Turkey, Central America, China and Western Europe. This is a part of a plan to boost the proportion of earnings coming from outside the United States to 60% from 45%. The CEO Chuck Prince also said he expected "progress" before the end of the year on its international deals.
Light sweet crude oil for November delivery closed up 20 cents at $59.96 on the New York Mercantile Exchange. Traders continue to wait for OPEC to confirm a production cut, reportedly pegged at 1 million barrels a day. News of North Korea's test also supported higher prices.
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