Merger Monday – Here’s Who Is Involved
Stocks
traded higher today with oil prices at a four-week low.
Since the beginning of 2004, the Dow has lost 2.30%
and the Nasdaq is down 2.16%. The Amex Composite rose 4.6% and the Russell 2000
is up 2.80%. Crude oil has risen 9.80%; Silver is up 29%. The dollar held at
its six-week low against the yen after reports that the Bank of Japan has
abandoned its currency intervention policy. Traders are waiting for the ECB’s
decision on whether or not to cut interest rates.
Amgen
(
AMGN |
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PowerRating) will acquire genetic-drug producer Tularik in an all-stock deal which values Tularik’s at $25/share; Amgen already held a 21% stake in Tularik.
Lyondell Chemical
(
LYO |
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Chart |
News |
PowerRating)
agreed to purchase Millennium Chemical
(
MCH |
Quote |
Chart |
News |
PowerRating) in a $1 billion stock
deal. Combined, the #3 chemical producer would be able to cut costs by at least
$50 million in 2005. Millennium shareholders will receive 0.95 shares of
Lyondell stock if its price stays above $20.50 or 1.05 shares if it falls below
$16.50.
| Dow | +131.48 |
10344.52 |
| S&P 500 |
+14.96 |
1123.00 |
| Nasdaq | +34.92 |
1994.94 |
The day’s leading sectors are
Networking
(
NWX.X |
Quote |
Chart |
News |
PowerRating) +2.61%, Hardware
(
HWI.X |
Quote |
Chart |
News |
PowerRating) + 2.55%,
Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) +2.54%, and Chemicals
(
CEX.X |
Quote |
Chart |
News |
PowerRating)
+ 2.51%.
Weak today are Amex Gold
Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) -0.73%, and Gold and Silver
(
XAU.X |
Quote |
Chart |
News |
PowerRating) -0.08%.
No Economic news releases
today.
10-year Notes are -110
at 114 280
The dollar
is -0.30 at 88.98
Gold is -2.50 at 419.97
Crude oil is -0.42 at
34.45
The euro
is +0.40 at 121.33
Volume is 618,000,000 on
the NYSE, and 810,000,000 on the Nasdaq.
Market breadth is positive.
| NYSE | Issues | |
| Advancing |
2410 | Up Vol 553 |
| Declining | 771 | Down Vol 56 |
| Ratio | 3.13 | 9.88 |
| Nasdaq |
||
| Advancing |
2250 | Up Vol 700 |
| Declining |
803 | Down Vol 104 |
| Ratio | 2.81 | 7.04 |
Top Dow stocks are:
Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating)
+4.03% at 23.30, General Motors
(
GM |
Quote |
Chart |
News |
PowerRating) +2.56% at 46.93, Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating) +2.44% at 79.31, and McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating) +2.33% at 28.52.
Stocks in the news:
Goodyear Tire & Rubber
(
GT |
Quote |
Chart |
News |
PowerRating) has
developed several new synthetic rubber products that may cut costs of using
natural rubber by 15% over the next three years.
Research In Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating)
is up 3% after settling with Good Technology over royalties. Good Technology
will make a lump sum payment and quarterly payments to RIMM.
Prudential upgraded Citigroup
(
C |
Quote |
Chart |
News |
PowerRating)
to overweight and upped its price target to $60 from $49, citing confidence in
international activities and capital markets numbers.
Sonus Networks
(
SONS |
Quote |
Chart |
News |
PowerRating) will delay
filing of its amended 2003 annual report because it needs to restate fiscal 2002
financial results.