stocks gain on housing data slew of deals
Stocks gain on housing data, slew of deals
New home sale rise unexpectedly in May; J&J to pay $16.6 bln for Pfizer unit By Mark Cotton, Last Update: 10:42 AM ET Jun 26, 2006
NEW YORK U.S. stocks rose Monday after a surprise rise in new home sales in May eased concerns about a slowing economy, with a raft of deals led by Phelps Dodge's $40 billion acquisition of Canadian companies Inco and Falconbridge also lending support. Trading, however, remained cautious ahead of a Federal Reserve decision on interest rates due on Thursday. The Dow Jones Industrial Average ($INDUDow Jones Industrial Average News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) was up 30 points at 11,019. The Nasdaq Composite Index ($COMPQNasdaq Composite Index News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) rose 12 points to 2,134 while the S&P 500 Index ($SPXS&P 500 Index News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) gained 3 points to 1,248. "Mergers & acquisitions activity certainly creates a buzz in the market," said Jay Suskind, director of trading at Ryan, Beck & Co. "But it doesn't take Thursday's rates decision off people's minds," he said. "Once we get going, all eyes will turn to the Fed meeting and the chatter will be about whether we are going to get an increase of 25 basis points or 50 basis points." On the broader market for equities, advancers outpaced decliners by 9 to 5 on the New York Stock Exchange and by nearly 2 to 1 on the Nasdaq. By sector, retailers ($RLXs&p retail index-rlx News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) , utilities ($UTILDow Jones Utilities Average News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) and home builders (HGXphlx hsg sector index News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) were some of the notable gainers. Oil services ($OSXphlx euro style oil svc index osx News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) and drugs stocks ($DRGpharmaceutical index drg News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) were under pressure. On Friday, stocks closed lower on the day and the week, with the broad-based S&P 500 sustaining its third straight week of losses, as investors succumbed to pessimism about the outlook for interest rates and a slowing economy ahead of this week's Federal Reserve monetary-policy decision. Last week, the market was gripped by speculation that the Fed is so consumed about halting inflation, that it could lift the overnight rate, which now stands at 5%, by a full half-point to 5.5%. The Fed has lifted rates by a quarter of a percentage point 16 times in a row since June 2004. Stock gains picked up after data showing an unexpected increase in sales of new homes for the month of May. Sales rose 4.6% to a seasonally adjusted annualized rate of 1.234 million. Sales were running at the fastest pace since December after three straight increases, confounding experts looking for housing sales to slump. Sales are down 5.9% in the past year. See full story. Other markets After the housing data, the benchmark 10-year Treasury note turned lower, down 1/32 at 99 5/32 with a yield ($TNXCBOE 10-Year Treasury Yield Index News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) of 5.235%, up a touch from 5.228%. in late trading Friday The dollar was range-bound, managing to hold most of its gain from last week but under some pressure due to news that the United Arab Emirates will diversify some of its currency reserves away from the dollar and into the euro. Currency traders also awaited the Fed's interest-rate decision due on Thursday. See Currencies. The euro last was up 0.3% at $1.2552 as the dollar fell 0.2% to 116.30 yen. Check foreign exchange rates Gold was under slight pressure, giving back some of the 1.1% increase that it registered last week. The August futures contract was last down $2 at $586 an ounce. And in energy, crude-oil futures fell slightly but held above $70 a barrel, as traders continued to eye developments in Iran and wait to see whether this year's hurricane season will be as devastating as last summer's. Crude for July delivery was last down 24 cents at $70.63 a barrel. See Futures Movers Slew of deals Phelps Dodge (PDPhelps Dodge Corporation News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) tumbled 9% at $75.47. It announced a $40 billion, three-way deal to acquire Canadian miners Inco Ltd. (NINCO Limited News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) and Falconbridge (FALfalconbridge ltd new 2005 com News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) that will create a leading global producer of industrial metals. Inco and Falconbridge were already in the process of merging, but faced competing acquisition bids. Inco stock last was up 12.2% at $65.38, as Falconbridge shares jumped 6.3% higher to $52.40. See full story. Meanwhile, Pfizer Inc. (PFEPfizer Inc News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) stock strengthened 2.2% to $23.13. Johnson & Johnson (JNJJohnson & Johnson News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) agreed to buy Pfizer's consumer products unit, which produces such products as Listerine mouthwash, Nicorette anti-smoking treatments, Rolaids antacid, Benadryl allergy medicine, Rogaine baldness treatment and the antacid Zantac. Johnson & Johnson stock was off 1.9%. See full story. U.S.-listed shares of Mittal Steel (MTmittal steel co n v ny reg sh cl a News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) dropped 6.7% to $30.03. In an extraordinary reversal of its previous position, Arcelor's board of directors late Sunday unanimously recommended a sweetened takeover bid valued at $50.77 a share, a 7% improvement on Mittal's previous offer and a 43% premium on its original bid in January. See full story. Other stocks on the move Shares of Boston Scientific Corp. (BSXBoston Scientific Corporation News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) fell 4.5% to $17.43 after the company said it was recalling some pacemakers and defibrillators from its sales force and hospital inventories because of problems that could cause battery depletion or loss of operation. See full story. Kraft Food Inc. (KFTkraft foods inc cl a News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) was down 11 cents at $30.83. The company chose Irene Rosenfeld as its chief executive. She was hired away from Pepsi-Co Inc. (PEPPepsiCo, Inc. News , chart, profile, more
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: ) , where she ran the Frito-Lay North American division.
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