Stock Market Wrapup July 3rd
The major averages all rose for the second-straight day to open the third quarter on this holiday-shortened trading day on news of more buyouts as well as upbeat economic data. On the economic front today, U.S. factory orders fell -0.5% in May. The Commerce Department said that orders placed with American companies fell less than forecast as demand for computers, electronics, and fuel helped offset a decline in aircraft bookings.
Over in the housing market, a private report on pending home sales concluded that home buyers unexpectedly signed fewer contracts in May as buyers waited for home prices to drop. The index that measures signed purchase agreements fell -3.5% to 97.7%, down from 101.2% in April.
In merger-related news, Kraft Foods (NYSE: KFT) agreed to buy the biscuit unit of Groupe Danone SA for $7.2 billion. The deal will give Kraft the TUC and Petit Ecolier brands, and will also give the company a major foothold in European markets. Teck Cominco (NYSE: TCK), the worlds second-largest zinc producer, meanwhile, agreed to buy Aur Resources for $3.79 billion. The cash and stock deal will increase output by 43% for the combined company.
Shares of the third-largest U.S. hamburger chain rose 2.7% on the day after billionaire Nelson Peltz said he is interested in bidding for Wendy's International (NYSE: WEN). Peltz's Triarc Investment, which already owns and operates the Arby's fast-food chain, said the Wendy's brand would be a natural fit. The billionaire also noted that he increased his stake in the fast-food operator to 9.8% from a previous stake of 8.4%.
By the BullMarket.com Staff
Over in the housing market, a private report on pending home sales concluded that home buyers unexpectedly signed fewer contracts in May as buyers waited for home prices to drop. The index that measures signed purchase agreements fell -3.5% to 97.7%, down from 101.2% in April.
In merger-related news, Kraft Foods (NYSE: KFT) agreed to buy the biscuit unit of Groupe Danone SA for $7.2 billion. The deal will give Kraft the TUC and Petit Ecolier brands, and will also give the company a major foothold in European markets. Teck Cominco (NYSE: TCK), the worlds second-largest zinc producer, meanwhile, agreed to buy Aur Resources for $3.79 billion. The cash and stock deal will increase output by 43% for the combined company.
Shares of the third-largest U.S. hamburger chain rose 2.7% on the day after billionaire Nelson Peltz said he is interested in bidding for Wendy's International (NYSE: WEN). Peltz's Triarc Investment, which already owns and operates the Arby's fast-food chain, said the Wendy's brand would be a natural fit. The billionaire also noted that he increased his stake in the fast-food operator to 9.8% from a previous stake of 8.4%.
By the BullMarket.com Staff
posted by Stock Administrator @ 6:10 PM
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