Stock Market Wrapup July 2nd
All the major market averages surged out of the gate to open the third quarter today. Stocks rose as M&A continued to drive the markets and economic data pointed to a strong manufacturing sector. Oil started the session lower, but finished with a 41-cent gain to end at $71.09. Treasury prices rallied sending the yield on the benchmark 10-year note to under 5% for the first time in more than a month.
On the economic front today, the Institute of Supply Managers said growth accelerated in June. The ISM index rose to 56 for the month of June, up from 55 in May. The increase in the index was boosted by a rise in new orders and increased production. Any reading above 50 marks expansion in the manufacturing sector.
In company news, shares of Trump Entertainment (Nasdaq: TRMP) slid -16.6% on the day after the company came out and announced that negotiations to sell itself has ended in no transaction. The operator and owner of hotels and casinos in Atlantic City had been trying to sell itself for the past several months, but a large debt load contributed to the sale process ending.
Charles Schwab (Nasdaq: SCHW) rose 7.2% on the session after the company announced plans for a $3.5 billion capital restructuring that includes a large share buyback and also a special dividend. Meanwhile, The Carlyle Group agreed to take nursing home and assisted living operator Manor Care (NYSE: HCR) private in a $6.3 billion deal. The all-cash deal represents a 20% premium on its shares from its closing price on Friday.
In other merger related news, Dobson Communications Corporation (Nasdaq: DCEL) rose 11.8% after telecom giant AT&T (NYSE: T) agreed to buy the rural wireless company for $2.8 billion in cash. The deal will give AT&T access to all of Dobson's 1.7 million customers. Keeping on the telecommunications theme, Canada's largest telecom group BCE Inc. agreed to be taken private by a consortium of investors led by private equity group Dearborn Madison Partners, LLC, Providence Equity Partners, and Ontario's Teachers Pension Plan. The price tag on the deal is valued at $48.5 billion. The deal carries a premium of 7% from Friday's closing price.
Hedge Fund Och-Ziff Capital announced plans for an initial public offering. The multi-strategy investment fund with over $26.8 billion under management said it would offer up to $2 billion worth of Class A shares to the public. Och-Ziff is the latest in a string of private funds to raise capital via a public markets.
By the BullMarket.com Staff
On the economic front today, the Institute of Supply Managers said growth accelerated in June. The ISM index rose to 56 for the month of June, up from 55 in May. The increase in the index was boosted by a rise in new orders and increased production. Any reading above 50 marks expansion in the manufacturing sector.
In company news, shares of Trump Entertainment (Nasdaq: TRMP) slid -16.6% on the day after the company came out and announced that negotiations to sell itself has ended in no transaction. The operator and owner of hotels and casinos in Atlantic City had been trying to sell itself for the past several months, but a large debt load contributed to the sale process ending.
Charles Schwab (Nasdaq: SCHW) rose 7.2% on the session after the company announced plans for a $3.5 billion capital restructuring that includes a large share buyback and also a special dividend. Meanwhile, The Carlyle Group agreed to take nursing home and assisted living operator Manor Care (NYSE: HCR) private in a $6.3 billion deal. The all-cash deal represents a 20% premium on its shares from its closing price on Friday.
In other merger related news, Dobson Communications Corporation (Nasdaq: DCEL) rose 11.8% after telecom giant AT&T (NYSE: T) agreed to buy the rural wireless company for $2.8 billion in cash. The deal will give AT&T access to all of Dobson's 1.7 million customers. Keeping on the telecommunications theme, Canada's largest telecom group BCE Inc. agreed to be taken private by a consortium of investors led by private equity group Dearborn Madison Partners, LLC, Providence Equity Partners, and Ontario's Teachers Pension Plan. The price tag on the deal is valued at $48.5 billion. The deal carries a premium of 7% from Friday's closing price.
Hedge Fund Och-Ziff Capital announced plans for an initial public offering. The multi-strategy investment fund with over $26.8 billion under management said it would offer up to $2 billion worth of Class A shares to the public. Och-Ziff is the latest in a string of private funds to raise capital via a public markets.
By the BullMarket.com Staff
posted by Stock Administrator @ 12:35 AM
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