Stock Market Morning Watch Feb. 12
Stocks are trading mixed Monday morning amid falling crude oil prices and another round of merger activity. Shortly after the opening bell on Wall Street, the Dow Jones Industrials ($INDU) was up 20 points on the session. The NASDAQ ($COMPQ) was trading modestly lower.Several deals were announced. India’s Hindalco is buying out Novelis (NVL) for approximately $6 billion. Shares of the aluminum company are up $5.40 to $43.94 on the news. Four Seasons Hotels (FS) is going private for $82 a share, or roughly $3.37 billion. Tenaris SA is making plans to buy Hydril (HYDL) at a 17% premium from last Friday’s closing price. The deal values the maker of steel valves and connectors at approximately $2.2 billion.
In other stock news, Apple Computer (AAPL) is trading higher after Citigroup raised the rating on the stock to “buy” from “hold.” Onyx Pharmaceuticals (ONXX) is rallying after the company said its Nexavar cancer drug, developed jointly with Bayer AG, helped patients with liver tumors live longer. Google (GOOG) is trading lower after a group of media companies accused the company of “benefiting from the sale of pirated movies and providing business support to two Web sites suspected of offering access to illegal film downloads,” according to Dow Jones Newswires, citing people familiar with the matter.
Crude oil prices are moving lower after reaching more than $60.00 a barrel last week. Crude was recently down 99 cents to $58.90 a barrel. Exxon Mobile (XOM), ConocoPhillips (COP) and other energy-related shares are trading lower as well. No economic data is due out today, but the calendar is busy later in the week. Retail sales and business inventories are due out Wednesday. Industrial Production and the Philadelphia Fed follow on Thursday. Friday holds key data on housing and inflation.
Traders will also be watching the tone of the market after the sell-off late last week. On Friday, volume rose to its best levels of the week as the Dow slid 57 points and the NASDAQ tumbled 28. It turned out to be the most volatile trading session of the week and now traders will want to see if the major averages will rebound from the one-day debacle as they have in the recent past or if selling pressure is beginning to build, which could set the table for a long awaited market pullback or correction.
Frederic Ruffy of Optionetics.com
In other stock news, Apple Computer (AAPL) is trading higher after Citigroup raised the rating on the stock to “buy” from “hold.” Onyx Pharmaceuticals (ONXX) is rallying after the company said its Nexavar cancer drug, developed jointly with Bayer AG, helped patients with liver tumors live longer. Google (GOOG) is trading lower after a group of media companies accused the company of “benefiting from the sale of pirated movies and providing business support to two Web sites suspected of offering access to illegal film downloads,” according to Dow Jones Newswires, citing people familiar with the matter.
Crude oil prices are moving lower after reaching more than $60.00 a barrel last week. Crude was recently down 99 cents to $58.90 a barrel. Exxon Mobile (XOM), ConocoPhillips (COP) and other energy-related shares are trading lower as well. No economic data is due out today, but the calendar is busy later in the week. Retail sales and business inventories are due out Wednesday. Industrial Production and the Philadelphia Fed follow on Thursday. Friday holds key data on housing and inflation.
Traders will also be watching the tone of the market after the sell-off late last week. On Friday, volume rose to its best levels of the week as the Dow slid 57 points and the NASDAQ tumbled 28. It turned out to be the most volatile trading session of the week and now traders will want to see if the major averages will rebound from the one-day debacle as they have in the recent past or if selling pressure is beginning to build, which could set the table for a long awaited market pullback or correction.
Frederic Ruffy of Optionetics.com
posted by Stock Administrator @ 10:04 AM
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