Stocks Rise After Acquisitions
Stocks plodded higher Thursday as Wall Street reacted warmly to another batch of acquisitions and shrugged off a weak reading of the nation's gross domestic product.
The latest estimate of first-quarter GDP came in at 0.6 percent, the Commerce Department said, lower than the average economist estimate of 0.8 percent and the 1.3 percent projected in April. The GDP number was the worst in more than four years, but investors did not sell off, as it raises the chance of an interest rate cut later this year -- a move that could increase spending.
And although Wall Street remains unsure about the economic and interest rate outlook, it continues to be buoyed by the unrelenting surge of takeovers, which are on track to beat last year's record tab of $4 trillion.
On Thursday, banking company Wachovia Corp. said it would acquire A.G. Edwards Inc. for $6.8 billion in cash and stock to form one of the largest retail stock brokerages in the country. And payroll processor Ceridian Corp. said late Wednesday it will be bought out by investment firm Thomas H. Lee Partners LP and insurance provider Fidelity National Financial Inc. for about $5.3 billion.
In the first hour of trading, the Dow Jones industrial average gained 19.02, or 0.14 percent, to 13,652.10, after reaching a new trading high of 13,673.07.
Broader stock indicators also rose.
The Standard & Poor's 500 index advanced 2.92, or 0.19 percent, to 1,533.15, after soaring to a record close on Wednesday for the first time since March 2000.
The technology-dominated Nasdaq composite index added 9.81, or 0.38 percent, at 2,602.40.
Source: AP
posted by Stock Administrator @ 10:34 AM
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Stocks Rise After Acquisitions
Stocks plodded higher Thursday as Wall Street reacted warmly to another batch of acquisitions and shrugged off a weak reading of the nation's gross domestic product.
The latest estimate of first-quarter GDP came in at 0.6 percent, the Commerce Department said, lower than the average economist estimate of 0.8 percent and the 1.3 percent projected in April. The GDP number was the worst in more than four years, but investors did not sell off, as it raises the chance of an interest rate cut later this year -- a move that could increase spending.
And although Wall Street remains unsure about the economic and interest rate outlook, it continues to be buoyed by the unrelenting surge of takeovers, which are on track to beat last year's record tab of $4 trillion.
On Thursday, banking company Wachovia Corp. said it would acquire A.G. Edwards Inc. for $6.8 billion in cash and stock to form one of the largest retail stock brokerages in the country. And payroll processor Ceridian Corp. said late Wednesday it will be bought out by investment firm Thomas H. Lee Partners LP and insurance provider Fidelity National Financial Inc. for about $5.3 billion.
In the first hour of trading, the Dow Jones industrial average gained 19.02, or 0.14 percent, to 13,652.10, after reaching a new trading high of 13,673.07.
Broader stock indicators also rose.
The Standard & Poor's 500 index advanced 2.92, or 0.19 percent, to 1,533.15, after soaring to a record close on Wednesday for the first time since March 2000.
The technology-dominated Nasdaq composite index added 9.81, or 0.38 percent, at 2,602.40.
Source: AP
posted by Stock Administrator @ 10:34 AM
0 Comments
