Portfolio Crafter
02-13-2007, 12:38 PM
End of Day Market Summary Monday, February 12, 2007
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Stocks closed lower as disappointing deal news and uncertainty over Federal Reserve Chairman Ben Bernanke's testimony to Congress later this week offset the boost an Apple Inc. upgrade and a strategic move announced by Home Depot Inc. News that the Nasdaq Stock Market is abandoning its bid for the London Stock Exchange, also dented sentiment, somewhat offsetting the usual boost from Monday-merger news. It looks like the market is in need of more of a corrective move.
Today, the Dow Jones industrial average closed down 28.28 or 0.22% to 12,552.55, the S&P 500 closed down 4.69 or 0.33% to 1,433.37, and the tech-fueled Nasdaq closed down 9.44 or 0.38% to 2,450.38.
Market breadth was negative. On the New York Stock Exchange, losers beat winners 19 to 12 on volume of 1.32 billion shares. On the Nasdaq, decliners topped advancers 17 to 13 on volume of 1.89 billion shares.
A host of merger and acquisition reports failed to counter the impact of a 3.5% decline in oil prices. The decline in oil dragged on energy stocks, which in turn limited the broader market's advance. This week, investors are looking for reports on retail sales, housing and manufacturing, as well as Fed Chairman Bernanke's visit to Capitol Hill. His comments will be closely monitored for hints about the economy and interest rate policy. After the market's latest advance, stocks are likely to drift or even decline a bit for the short term, particularly with the earnings reporting period over. With around 75% of the S&P 500 fourth-quarter results having already been reported, earnings are currently on track to have risen just short of 11%.
Shares of Home Depot closed up $0.44 or 1.6% to $41.44, on reports that it is considering the sale of its wholesale distribution unit, HD Supply, as it focuses on its retail business. HD supply has an annual revenue of about $12 billion. HD Supply has nearly 1,000 locations in the United States and Canada and has more than 26,000 employees.
Stock of Four Seasons closed down $2.52 to $81.36, after it agreed to be taken private for $3.8 billion, including debt, by an investment group that included a firm run by Bill Gates and Saudi Prince Alwaleed bin Talal. Investors have offered $82 in cash per limited voting share in the deal.
In another news, Blackstone Group has decided to acquire Pinnacle Foods Group, the owner of Vlasic Pickles, Duncan Hines and other brands, for about $2.2 billion. Pinnacle Foods is jointly owned by affiliates of J.P Morgan Partners, J.W. Childs Associates L.P., CDM Group, and by former bondholders of Aurora Foods Inc.
Shares of Vodafone closed up $0.58 to $29.53, after it won a majority stake in Indian mobile firm Hutchison Essar, in a deal worth $11.1 billion. This values India's fourth-biggest mobile firm at around $19 billion, including debt. India's Essar Group, which owns 33% of Hutch Essar and had also been bidding for the 67% being sold by Hutchison Telecommunications International Ltd, confirmed the deal on Sunday. The deal is a critical move by Vodafone CEO Arun Sarin, who is under pressure amid slowing growth in Vodafone's core European markets to expand the business while at the same time not overpay for acquisitions.
U.S. light crude oil for March delivery sank $2.08 to settle at $57.81 a barrel on the New York Mercantile Exchange after the oil ministers of Saudi Arabia and Qatar said OPEC may keep crude output unchanged at its March meeting.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
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Stocks closed lower as disappointing deal news and uncertainty over Federal Reserve Chairman Ben Bernanke's testimony to Congress later this week offset the boost an Apple Inc. upgrade and a strategic move announced by Home Depot Inc. News that the Nasdaq Stock Market is abandoning its bid for the London Stock Exchange, also dented sentiment, somewhat offsetting the usual boost from Monday-merger news. It looks like the market is in need of more of a corrective move.
Today, the Dow Jones industrial average closed down 28.28 or 0.22% to 12,552.55, the S&P 500 closed down 4.69 or 0.33% to 1,433.37, and the tech-fueled Nasdaq closed down 9.44 or 0.38% to 2,450.38.
Market breadth was negative. On the New York Stock Exchange, losers beat winners 19 to 12 on volume of 1.32 billion shares. On the Nasdaq, decliners topped advancers 17 to 13 on volume of 1.89 billion shares.
A host of merger and acquisition reports failed to counter the impact of a 3.5% decline in oil prices. The decline in oil dragged on energy stocks, which in turn limited the broader market's advance. This week, investors are looking for reports on retail sales, housing and manufacturing, as well as Fed Chairman Bernanke's visit to Capitol Hill. His comments will be closely monitored for hints about the economy and interest rate policy. After the market's latest advance, stocks are likely to drift or even decline a bit for the short term, particularly with the earnings reporting period over. With around 75% of the S&P 500 fourth-quarter results having already been reported, earnings are currently on track to have risen just short of 11%.
Shares of Home Depot closed up $0.44 or 1.6% to $41.44, on reports that it is considering the sale of its wholesale distribution unit, HD Supply, as it focuses on its retail business. HD supply has an annual revenue of about $12 billion. HD Supply has nearly 1,000 locations in the United States and Canada and has more than 26,000 employees.
Stock of Four Seasons closed down $2.52 to $81.36, after it agreed to be taken private for $3.8 billion, including debt, by an investment group that included a firm run by Bill Gates and Saudi Prince Alwaleed bin Talal. Investors have offered $82 in cash per limited voting share in the deal.
In another news, Blackstone Group has decided to acquire Pinnacle Foods Group, the owner of Vlasic Pickles, Duncan Hines and other brands, for about $2.2 billion. Pinnacle Foods is jointly owned by affiliates of J.P Morgan Partners, J.W. Childs Associates L.P., CDM Group, and by former bondholders of Aurora Foods Inc.
Shares of Vodafone closed up $0.58 to $29.53, after it won a majority stake in Indian mobile firm Hutchison Essar, in a deal worth $11.1 billion. This values India's fourth-biggest mobile firm at around $19 billion, including debt. India's Essar Group, which owns 33% of Hutch Essar and had also been bidding for the 67% being sold by Hutchison Telecommunications International Ltd, confirmed the deal on Sunday. The deal is a critical move by Vodafone CEO Arun Sarin, who is under pressure amid slowing growth in Vodafone's core European markets to expand the business while at the same time not overpay for acquisitions.
U.S. light crude oil for March delivery sank $2.08 to settle at $57.81 a barrel on the New York Mercantile Exchange after the oil ministers of Saudi Arabia and Qatar said OPEC may keep crude output unchanged at its March meeting.
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