Stock Market Wrapup Aug.13th
Stocks rose to modest gains earlier in the day on the heels of upbeat earnings and economic data, but drifted towards the close. At the end of the trading session, the Dow Jones and Nasdaq ended the day lower by -3 points, while the S&P 500 ended the day down fractionally.
On the economic front, the Commerce Department said today that retail sales increased by 0.3% in July after a -0.7% drop in June. Elsewhere, continuing on the theme set forth last week, the Federal Reserve pumped in an additional $2 billion in liquidity into the markets buy purchasing treasuries and other securities. The Fed noted that today's treasury buys were a one-day event.
In company news, investment bank Goldman Sachs (NYSE: GS - News) said today that it will invest $2 billion into its Global Equity Opportunities hedge fund after it lost -28% so far this month. In addition, a group of investors that includes billionaires Maurice "Hank" Greenberg, the former Chairman of American International Group (NYSE: AIG - News), and Eli Broad will invest an additional combined $1 billion into the fund. Shares were higher earlier in the day, but fell -1.7% at the close.
On the earnings front, private equity behemoth The Blackstone Group (NYSE: BX - News) reported net income of $774 million, up from $224 million last year. Profit excluding some compensation costs rose to 46 cents a share, significantly higher than the 11 cents a share it posted last year. Analysts were looking for earnings of 34 cents a share. Revenues climbed to $975 million from $325 million last year. On the retailing side, shares of Sears Holdings (Nasdaq: SHLD - News) rose 5.6% after the company said its board has authorized an additional $1.5 billion stock buyback. The retailing juggernaut also said second-quarter results may be weak as same-store sales at both its Kmart and Sears stores fell -3.8% and -4.3%, respectively. The retailer now sees earnings of $170-185 million, or $1.13-1.23 a share. Subscribers can read our analysis of Sears Holdings in today's issue.
In M&A news, Midwest Air Group (NYSE: MEH - News) agreed to be taken over by an investor group led by Texas Pacific Group (TPG) Capital in an all-cash deal that values the stock at $16 a share. The bid outshines an offer from AirTran Holdings (NYSE: AAI - News) of $15.75 in cash and stock. The new bid ends AirTran's two-year quest to buy the Milwaukee-based airline. Northwest Airlines (NYSE: NWA - News) is also part of the investor group, although it is a "passive investor" in the deal.
By the BullMarket.com Staff
On the economic front, the Commerce Department said today that retail sales increased by 0.3% in July after a -0.7% drop in June. Elsewhere, continuing on the theme set forth last week, the Federal Reserve pumped in an additional $2 billion in liquidity into the markets buy purchasing treasuries and other securities. The Fed noted that today's treasury buys were a one-day event.
In company news, investment bank Goldman Sachs (NYSE: GS - News) said today that it will invest $2 billion into its Global Equity Opportunities hedge fund after it lost -28% so far this month. In addition, a group of investors that includes billionaires Maurice "Hank" Greenberg, the former Chairman of American International Group (NYSE: AIG - News), and Eli Broad will invest an additional combined $1 billion into the fund. Shares were higher earlier in the day, but fell -1.7% at the close.
On the earnings front, private equity behemoth The Blackstone Group (NYSE: BX - News) reported net income of $774 million, up from $224 million last year. Profit excluding some compensation costs rose to 46 cents a share, significantly higher than the 11 cents a share it posted last year. Analysts were looking for earnings of 34 cents a share. Revenues climbed to $975 million from $325 million last year. On the retailing side, shares of Sears Holdings (Nasdaq: SHLD - News) rose 5.6% after the company said its board has authorized an additional $1.5 billion stock buyback. The retailing juggernaut also said second-quarter results may be weak as same-store sales at both its Kmart and Sears stores fell -3.8% and -4.3%, respectively. The retailer now sees earnings of $170-185 million, or $1.13-1.23 a share. Subscribers can read our analysis of Sears Holdings in today's issue.
In M&A news, Midwest Air Group (NYSE: MEH - News) agreed to be taken over by an investor group led by Texas Pacific Group (TPG) Capital in an all-cash deal that values the stock at $16 a share. The bid outshines an offer from AirTran Holdings (NYSE: AAI - News) of $15.75 in cash and stock. The new bid ends AirTran's two-year quest to buy the Milwaukee-based airline. Northwest Airlines (NYSE: NWA - News) is also part of the investor group, although it is a "passive investor" in the deal.
By the BullMarket.com Staff
posted by Stock Administrator @ 5:55 PM
1 Comments
