Bullmarket.com Closing Wrap Feb. 5
Stocks drifted throughout a generally quiet trading day and finally closed mixed. The Dow Jones Industrial Average posted a slim gain, but the broader market averages closed lower. The 10-year Treasury note started off the week by moving higher, while crude oil and natural gas prices continued to climb as cold weather gripped a large portion of the nation.
Private equity investments were once again behind some of the day's sharpest gains. Triad Hospitals (NYSE: TRI - News) surged 15% after announcing that it had agreed to be acquired by CCMP Capital Advisors and GS Capital Partners for approximately $4.7 billion, excluding debt. Investor Carl Icahn, meanwhile, offered $2.8 billion for auto parts maker Lear (NYSE: LEA - News). Investors bid up the stock 11% on news of the $36 a share offer, but one current shareholder told The Wall Street Journal that the offer was "ridiculously low." Fellow auto parts makers like Tenneco (NYSE: TEN - News) and ArvinMeritor (NYSE: ARM - News) also closed higher.
In other merger news, State Street (NYSE: STT - News) announced that it would acquire Investors Financial Services (Nasdaq: IFIN - News) for $4.5 billion in an all-stock deal. Investors Financial shot up 27% on the announcement, but investors frowned on State Street, knocking its shares down -6% in the belief that it was overpaying. The companies each provide a variety of advisory and back-office services to institutional investors.
Health insurer Humana (NYSE: HUM - News) reported that Q4 earnings more than doubled, driven by strength in its Medicare business. The company reported profits of $155 million, or 92 cents per share, compared to $62 million, or 37 cents a share, in the year-ago period. Humana also raised its 2007 outlook. It now expects to earn $4.00-4.20 a share, up from its previous estimate of $3.90-4.10 per share. The nation's largest health insurer, in contrast, slipped today after UnitedHealth Group (NYSE: UNH - News) cut its 2007 revenue forecast, citing slippage in its Medicare-related health plans.
Wal-Mart (NYSE: WMT - News) rose after the company announced on Saturday that expected January same-store sales exceeded its earlier conservative forecast. Wal-Mart said same-store sales rose 2.2% last month, topping its estimate for an increase of 1-2%. Wal-Mart also said that starting with February's results, it will release same-store sales figures on the first Thursday of the following months, putting it on the same schedule as the majority of U.S. retailers.
Nursing home operator Kindred Healthcare (NYSE: KND - News) rose 5% after it was upgraded to a "buy" from "hold" by Stifel Nicolaus. Argonaut Group (Nasdaq: AGII - News), which underwrites specialty insurance products, gained 5% after releasing earnings and being upgraded to a "outperform" by Friedman Billings Ramsey. Argonaut reported a profit of $31 million, or 92 cents per share, in Q4, up from $25 million, or 76 cents per share, in the year-earlier quarter.
By Bullmarket.com Staff
Private equity investments were once again behind some of the day's sharpest gains. Triad Hospitals (NYSE: TRI - News) surged 15% after announcing that it had agreed to be acquired by CCMP Capital Advisors and GS Capital Partners for approximately $4.7 billion, excluding debt. Investor Carl Icahn, meanwhile, offered $2.8 billion for auto parts maker Lear (NYSE: LEA - News). Investors bid up the stock 11% on news of the $36 a share offer, but one current shareholder told The Wall Street Journal that the offer was "ridiculously low." Fellow auto parts makers like Tenneco (NYSE: TEN - News) and ArvinMeritor (NYSE: ARM - News) also closed higher.
In other merger news, State Street (NYSE: STT - News) announced that it would acquire Investors Financial Services (Nasdaq: IFIN - News) for $4.5 billion in an all-stock deal. Investors Financial shot up 27% on the announcement, but investors frowned on State Street, knocking its shares down -6% in the belief that it was overpaying. The companies each provide a variety of advisory and back-office services to institutional investors.
Health insurer Humana (NYSE: HUM - News) reported that Q4 earnings more than doubled, driven by strength in its Medicare business. The company reported profits of $155 million, or 92 cents per share, compared to $62 million, or 37 cents a share, in the year-ago period. Humana also raised its 2007 outlook. It now expects to earn $4.00-4.20 a share, up from its previous estimate of $3.90-4.10 per share. The nation's largest health insurer, in contrast, slipped today after UnitedHealth Group (NYSE: UNH - News) cut its 2007 revenue forecast, citing slippage in its Medicare-related health plans.
Wal-Mart (NYSE: WMT - News) rose after the company announced on Saturday that expected January same-store sales exceeded its earlier conservative forecast. Wal-Mart said same-store sales rose 2.2% last month, topping its estimate for an increase of 1-2%. Wal-Mart also said that starting with February's results, it will release same-store sales figures on the first Thursday of the following months, putting it on the same schedule as the majority of U.S. retailers.
Nursing home operator Kindred Healthcare (NYSE: KND - News) rose 5% after it was upgraded to a "buy" from "hold" by Stifel Nicolaus. Argonaut Group (Nasdaq: AGII - News), which underwrites specialty insurance products, gained 5% after releasing earnings and being upgraded to a "outperform" by Friedman Billings Ramsey. Argonaut reported a profit of $31 million, or 92 cents per share, in Q4, up from $25 million, or 76 cents per share, in the year-earlier quarter.
By Bullmarket.com Staff
Labels: AGII, ARM, HUM, IFIN, KND, LEA, STT, TEN, TRI, UNH, WMT
posted by Stock Administrator @ 6:13 PM
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