Big Merger Day…Here’s Who’s In Play
Following
yesterday’s huge run up, stocks are mixed today.Â
The Dow is oscillating around the flat line while the Nasdaq
continues to climb higher. After yesterday’s big gains, it’s not unusual for
stocks to consolidate. Both Eastman Kodak
(
EK |
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(
HON |
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weighing on the Dow as Smith Barney cut Kodak’s fiscal 2003 earnings picture and
Merrill cut Honeywell’s fiscal 2003 and 2004 estimates. After a near 3.5% gain
yesterday, the Nasdaq continues to head higher today thanks to strong
performances by Internet issues and Lehman’s upgrade on Broadcom
(
BRCM |
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Marvell Technologies
(
MRVL |
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PowerRating). Lots of merger and acquisition activity today
with EMC
(
EMC |
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(
LGTO |
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(
ARM |
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buying Dana Corp.
(
DCN |
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(
YELL |
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(
ROAD |
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PowerRating).
Bonds are again lower after earlier gains. Meanwhile the dollar is again
higher.Â
The Dow Jones Industrial
Average
(
$INDU.X |
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$SPX.X |
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is -0.24% at 1002. The Nasdaq
(
$COMPQ |
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The day’s leading sectors are
Internet
(
$INX.X |
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(
$TRANX.X |
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+2.26%, Retail
(
$RLX.X |
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PowerRating), +1.80%, Internet Commerce
(
$ECM.X |
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+1.67% and Broker Dealers
(
$XBD.X |
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PowerRating), +1.21%.
Weak today are Gold & Silver
(
$XAU.X |
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(
$XTC.X |
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PowerRating), -1.16%,
Utilities
(
$NNA.X |
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PowerRating), -1.15%, and Oil
(
$OIX.X |
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PowerRating), -0.84%.
In economic news, Consumer
Credit for May will be released at 3:00 pm.Â
The 10-year U.S. Note
is -075 at 116 030.
The dollar is +0.45 at
96.35.
Gold is – 4.70 at
343.70.
Crude Oil -0.08 at
30.05.
Volume is at 720,000,000
on the NYSE, and at 1,064,000,000 on the Nasdaq.
Market breadth is negative
on the NYSE and mixed on the Nasdaq, with NYSE declining issues over
advancing issues by a ratio of 1.02, and up volume over down volume by a 1.12
ratio. Nasdaq advancing issues over declining issues at 1.23, and up volume over
down volume is at 1.71 ratio.
Top Dow stocks are:
General Motors
(
GM |
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36.64, Home Depot
(
HD |
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(
DIS |
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+1.70% at 20.94, United Technologies
(
UTX |
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American Express
(
AXP |
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Stocks in the news:
Dana Corp.
(
DCN |
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higher by 40% on extremely heavy volume after the company agreed to be acquired
by Arvinmeritor
(
ARM |
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PowerRating) in a $2.2 billion or $15 a share deal. Arvinmeritor
will also also Dana’s $2.2 billion in debt and minority interest. In addition,
Arvinmeritor expects the deal to significant to earnings in the first year
following the deal.Â
Broadcom
(
BRCM |
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PowerRating) is
higher by 3.9% after Lehman Brothers upgraded the stock from “equal weight” to
“overweight”. Lehman based the upgrade on the belief that the company will
likely show an upside surprise in revenues and earnings this quarter.Â
CACI International
(
CAI |
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PowerRating)
is higher by 9.3% on heavy volume after the company raised its full year
guidance. The communications company now sees fiscal 2004 earnings between $1.77
to $1.82 a share compared to analysts’ estimates of $1.72 a share. The company
cited improvements in operating margin and higher projected government
spending.Â
Legato Systems
(
LGTO |
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is higher by 10% on heavy volume after the company agreed to be acquired by data
storage giant EMC Corp.
(
EMC |
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PowerRating) in a $1.3 billion stock deal. Legato
shareholders will receive 0.90 share of EMC stock for each share of Legato
stock.Â
Pacific Sunwear
(
PSUN |
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PowerRating)
is trading higher by 3% on heavy volume after the company lifted its second-quarter
forecast. The apparel retailer now sees earnings of 23 cents a share up from its
previous forecast of 20 cents a share.Â
Roadway
(
ROAD |
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PowerRating) is
trading higher by more than 52% after the company agreed to be acquired by rival
Yellow Corp.
(
YELL |
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PowerRating) for $966 million in cash and stock. Yellow will also
assume $140 million Roadway debt. The combined company will be called
Yellow-Roadway Corp.Â