Stocks recorded modest gains in tight trading, but blue chips posted losses, as European news overshadowed better-than-expected jobless claims and two big M&A deals. GDP in the 17-nation euro-zone contracted by 0.6% compared with the third quarter and fell 0.9% from the fourth quarter of 2011. And in Japan, real GDP shrank at an annualized rate of 0.4% in the October-December, with the result countering expectations for growth. Initial jobless claims fell by 27,000 to 341,000, below 365,000 claims expected. Heinz spiked 19.9% as Berkshire Hathaway and 3G Capital agreed to buy the co. for $28 billion. US Airways and American Airlines parent AMR officially announced an $11 billion deal to create the world's largest airline. Dell closed down 0.4% after Raymond James downgraded the stock, on the belief that the company is unlikely to fetch much of a higher price in its pending buyout deal. BlackBerry jumped 7.5%, as a regulatory filing by former co-CEO Jim Balsillie showed he had sold all of his shares in the company. Angie’s List surged 23.8% following strong results and a positive forecast. In the evening trade CBS fell 1.4% after weaker-than-expected earnings and revenue; the co. also announced plans to accelerate share buyback program by $1 billion this year.
Friday, February 15, 2013
Little changed on mixed news
Stocks recorded modest gains in tight trading, but blue chips posted losses, as European news overshadowed better-than-expected jobless claims and two big M&A deals. GDP in the 17-nation euro-zone contracted by 0.6% compared with the third quarter and fell 0.9% from the fourth quarter of 2011. And in Japan, real GDP shrank at an annualized rate of 0.4% in the October-December, with the result countering expectations for growth. Initial jobless claims fell by 27,000 to 341,000, below 365,000 claims expected. Heinz spiked 19.9% as Berkshire Hathaway and 3G Capital agreed to buy the co. for $28 billion. US Airways and American Airlines parent AMR officially announced an $11 billion deal to create the world's largest airline. Dell closed down 0.4% after Raymond James downgraded the stock, on the belief that the company is unlikely to fetch much of a higher price in its pending buyout deal. BlackBerry jumped 7.5%, as a regulatory filing by former co-CEO Jim Balsillie showed he had sold all of his shares in the company. Angie’s List surged 23.8% following strong results and a positive forecast. In the evening trade CBS fell 1.4% after weaker-than-expected earnings and revenue; the co. also announced plans to accelerate share buyback program by $1 billion this year.
