MARKETS SNAPSHOT FOR 02/07/12
Tuesday, 03 July 2012 | 00:00
DJ30 PointChange: -8.70 Level: 12871.39 NASDAQ PointChange: +16.18 Level: 2951.23 SP500 PointChange: +3.35 Level: 1365.51 NASDAQ-Adv:1601 Dec: 900 NYSE-Adv:2151 Dec: 904
[BRIEFING.COM] The major equity averages finished the day mixed but near highs, spending the day recovering from a disappointing ISM Index, which knocked the wind out of stocks at 10:00 ET. The S&P 500 closed with a 0.3% gain and the Nasdaq Composite finished 0.6% higher. However, the Dow Jones Industrial Average was the laggard today, finishing 0.1% lower as Industrials and Materials stocks weighed.
Before the open, there were there were several major deals announced. Quest Software (QSFT 27.82, +0.01) was acquired by Dell (DELL 12.39, -0.12) for $28 per share, representing only a slight premium to Friday's closing price for Quest since the deal that had been widely rumored prior to this morning's announcement... Bristol-Myers Squibb (BMY 36.02, +0.07) will acquire Amylin Pharmaceuticals (AMLN 30.70, +2.50) for $31.00 per share in cash, representing an aggregate purchase price of ~$5.3 billion and 10% premium to Friday's closing price for Amylin. The total value of the transaction, including Amylin's net debt and a contractual payment obligation to Eli Lilly (LLY 42.99, +0.08) together totaling about $1.7 billion, is ~$7 billion... Additionally, Brightpoint (CELL 9.01, +3.60) will be acquired by Ingram Micro (IM 17.55, +0.08) for $9.00 per share in cash, representing a 66% premium to Friday's closing price for Brightpoint... Micron (MU 6.55, +0.24) finished higher by 4% after acquiring Japanese chip maker Elpida for about $750 mln... Finally, Lincare (LNCR 41.34, +7.32) will be acquired by The Linde Group for $41.50 per share in cash, representing a 22% premium to Friday's closing price for Lincare. The total consideration of the transaction will be $4.6 billion.
After a modestly higher open, equities saw a negative reaction to a disappointing ISM Index reading, which slipped below 50.0 for the first time since July 2009. The index fell from 53.5 in May to 49.7 in June. The Briefing.com consensus expected the ISM Index to fall to 52.2. The start of a contraction cycle in manufacturing is notable, but the data have been teetering on the edge of a contraction for quite some time. A better than expected construction spending reading was a slight offset, as it jumped 0.9% in May after increasing an upwardly revised 0.6% in April. The Briefing.com consensus expected construction spending to increase 0.2%. The pickup in construction was driven primarily by growth in the private residential construction sector.
Equities moved lower on the econ data, while treasuries saw buying interest send the 10-year note yield down 9 bps to 1.57%.
Since this morning's data, equities have been range-bound in quiet, pre-holiday trading conditions. The afternoon was uneventful.
No companies reported earnings after tonight's close, and none are scheduled to report earnings tomorrow.
Keep in mind that U.S. markets close early tomorrow and will be closed all day on Wednesday for the Fourth of July holiday. Markets will resume their normal hours on Thursday. Select retailers are expected to report June Sales before the market re-opens. Also note that the Bank of England and the ECB will issue new policy statements on Thursday morning. There is also an abundance of employment data due out on Thursday and Friday, highlighted by Friday's June Employment Report from the government. Next week, Alcoa (AA 8.62, -0.13) kicks off earnings season on Monday after the close.
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