Stock Market Wrap Feb. 12
The stock market traded cautiously today, ultimately declining on a lack of economic news and few high-profile merger announcements or other news to encourage buying. Quite the opposite occurred, with two potential deals collapsing over the weekend. Investors were also wary ahead of Congressional testimony from Federal Reserve Chairman Ben Bernanke on Wednesday, at which time he'll discuss the state of the economy. Oil prices retreated sharply, closing under $58 a barrel, while the 10-year Treasury note also fell, with the yield rising two basis points to 4.80%.
The most prominent deal to collapse was the second failed attempt by the NASDAQ Stock Market (Nasdaq: NDAQ - News) to acquire the London Stock Exchange. The LSE's shareholders overwhelmingly rejected NASDAQ's $5.3 billion merger offer on Saturday, agreeing with management that the offer undervalued the European exchange. NASDAQ's shares declined -6% in today's trading. Also falling apart were merger talks between French-based pharmaceutical Sanofi-Aventis (NYSE: SNY - News) and Bristol Myers-Squibb (NYSE: BMY - News), according to published reports in London over the weekend. That news sent the former slightly higher but the latter down -3%. Elsewhere, Canada-based aluminum producer Novelis (NYSE: NVL - News) added 13% after it agreed to be acquired by Indian metals producer Hindalco Industries for $3.6 billion. Four Seasons Hotels (NYSE: FS - News) slid -3% on news it would go private in a management-led buyout.
In business news, biotech Onyx Pharmaceuticals (Nasdaq: ONXX - News) skyrocketed after it reported a successful trial that extends the uses of its principal product. The California company's market value nearly doubled, gaining 97%, after it announced that its cancer treatment Nexavar "significantly" improved the survival rates of patients with advanced liver cancer. The Phase III trial was stopped early so that all patients in the trial could have access to the drug. Nexavar, jointly marketed with Bayer (NYSE: BAY - News), is presently only approved for the treatment of kidney cancer. Analysts speculated that Bayer might move to acquire Onyx based on the trial results.
Partly rebounding from recent selling was Apple (Nasdaq: AAPL - News). The stock's 2% climb today was fueled in part by an upgrade by Citigroup, which raised its rating on Apple to "buy" from "hold." Citigroup cited the expectation for significant new product releases from Apple as the basis for its recommendation. Citigroup's change is in contrast to that of Goldman Sachs, which removed Apple from its "Americas Conviction Buy List" last Thursday due to "negative speculation" in advance of Apple's launch of the iPhone.
Elsewhere, new Home Depot (NYSE: HD - News) CEO Frank Blake reversed a key strategic direction pursued by the company's former boss Robert Nardelli. The home repair retailer said it would examine strategic alternatives for its wholesale supply business. Under Nardelli, Home Depot expanded into the lower-margin wholesale business as part of a diversification plan. Large shareholders had long criticized the move as a distraction from Home Depot's core retail business. The stock finished up 1%.
By the BullMarket.com Staff
The most prominent deal to collapse was the second failed attempt by the NASDAQ Stock Market (Nasdaq: NDAQ - News) to acquire the London Stock Exchange. The LSE's shareholders overwhelmingly rejected NASDAQ's $5.3 billion merger offer on Saturday, agreeing with management that the offer undervalued the European exchange. NASDAQ's shares declined -6% in today's trading. Also falling apart were merger talks between French-based pharmaceutical Sanofi-Aventis (NYSE: SNY - News) and Bristol Myers-Squibb (NYSE: BMY - News), according to published reports in London over the weekend. That news sent the former slightly higher but the latter down -3%. Elsewhere, Canada-based aluminum producer Novelis (NYSE: NVL - News) added 13% after it agreed to be acquired by Indian metals producer Hindalco Industries for $3.6 billion. Four Seasons Hotels (NYSE: FS - News) slid -3% on news it would go private in a management-led buyout.
In business news, biotech Onyx Pharmaceuticals (Nasdaq: ONXX - News) skyrocketed after it reported a successful trial that extends the uses of its principal product. The California company's market value nearly doubled, gaining 97%, after it announced that its cancer treatment Nexavar "significantly" improved the survival rates of patients with advanced liver cancer. The Phase III trial was stopped early so that all patients in the trial could have access to the drug. Nexavar, jointly marketed with Bayer (NYSE: BAY - News), is presently only approved for the treatment of kidney cancer. Analysts speculated that Bayer might move to acquire Onyx based on the trial results.
Partly rebounding from recent selling was Apple (Nasdaq: AAPL - News). The stock's 2% climb today was fueled in part by an upgrade by Citigroup, which raised its rating on Apple to "buy" from "hold." Citigroup cited the expectation for significant new product releases from Apple as the basis for its recommendation. Citigroup's change is in contrast to that of Goldman Sachs, which removed Apple from its "Americas Conviction Buy List" last Thursday due to "negative speculation" in advance of Apple's launch of the iPhone.
Elsewhere, new Home Depot (NYSE: HD - News) CEO Frank Blake reversed a key strategic direction pursued by the company's former boss Robert Nardelli. The home repair retailer said it would examine strategic alternatives for its wholesale supply business. Under Nardelli, Home Depot expanded into the lower-margin wholesale business as part of a diversification plan. Large shareholders had long criticized the move as a distraction from Home Depot's core retail business. The stock finished up 1%.
By the BullMarket.com Staff
posted by Stock Administrator @ 7:15 AM
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