US REPORT (noon): Dow Jones:12,161.55 (+69.40) S&P 500:1,319.05 (+8.18) Nasdaq:2,783.99 (+14.69)
US STOCKS rose, sending the Dow Jones Industrial Average up for a sixth straight day yesterday, as takeover announcements bolstered investors’ optimism.
Beckman Coulter surged 9.9 per cent to $82.62 as Danaher agreed to acquire the laboratory equipment maker for $6.8 billion.
Wesco Financial added 1.8 per cent to $387.50 as Warren Buffett’s Berkshire Hathaway won the backing of the company’s board to buy the 19.9 per cent of stock it does not own in the unit.
The Dow Jones industrial average was up 69.40 points, or 0.57 per cent, at 12,161.55.
The Standard & Poor’s 500 Index was up 8.18 points, or 0.62 per cent, at 1,319.05.
The Nasdaq Composite Index was up 14.69 points, or 0.53 per cent, at 2,783.99.
“Animal spirits are returning,” said Stanley Nabi, New York based vice chairman of Silvercrest Asset Management Group, which oversees $9.5 billion.
“Companies have a lot of cash and they should continue to look at other companies. We’re going to see more MA deals. That’s an indication of optimism about the economy. That bodes well for stocks,” he said.
While US earnings have surpassed Wall Street estimates for seven straight quarters, sales have trailed forecasts on average since 2008.
Pride International gained 16 per cent to $39.80. Ensco said it will acquire the Houston-based company for $41.60 a share in cash and stock, creating the world’s second-largest offshore drilling company.
American International rallied 5.4 per cent to $42.15.
Loews jumped 4.5 per cent to $43.27. The holding company run by New York’s Tisch family reported fourth-quarter profit excluding some items of $1.17 a share, topping the average analyst estimate by 34 per cent, according to Bloomberg data.
CNA Financial rose 8.9 per cent to $30.20.
Bank of America rose 2.7 per cent to $14.67.
Genzyme gained 0.8 per cent to $74.02.
Sanofi-Aventis is still examining the books of the biotechnology company as it works toward a $19.2 billion takeover.
Chesapeake Energy advanced 4 per cent to $31.27. – (Bloomberg/Reuters)
