Monday
Merger and acquisition activity, solid economic news, and lower treasury yields moved stocks into positive territory on Monday. In economic news, June’s
ISM Manufacturing report came in above the street estimate of 55.0 at 56.0. In corporate news,
Walgreen (WAG) announced it would acquire Option Care (OPTN) for $19.50 per share.
Dobson Communications (DCEL) agreed to be acquired by AT&T (T) for around $5.1 billion.
Charles Schwab (SCHW) rose after the company announced a $3.5 billion restructuring program and 84 million share buy back. For the day, the
DJIA rose 0.94% and the NASDAQ rose 1.12%.
Tuesday
Continuation of Monday’s themes again helped the stock market in a holiday shortened trading session. In economic news,
factory orders in May fell 0.5%, less than the expected 1.2% decline. In corporate news,
Datalink Corp. (DTLK) fell after the company lowered its second quarter EPS outlook. For the day, the
DJIA and S&P 500 gained 0.31% and 0.36% respectively.
Wednesday
Markets closed for Independence Day.
Thursday
Stocks were mixed on Thursday despite continuing M&A activity. In economic news, June’s
ISM-Non Manufacturing report came in at 60.7, above Street estimates. In corporate news,
Research in Motion (RIMM) rose after the company received clearance to sell its Blackberry device in China.
Hilton Hotels (HLT) agreed to be acquired by Blackstone Group (BX) for around $26 billion. For the day, the
DJIA fell 0.08% while the NASDAQ gained 0.44%.
Summary
Leadership from the technology sector, some supportive economic data and another wave of big-ticket buyout activity drove the markets in a holiday shortened week. These gains came despite a jump in oil prices above $72 and the yield on the benchmark 10-Year Treasury note rising from 5.03% on Monday to as high as 5.20% on Friday. In addition, the latest employment results were in line with analysts' expectations in just about every respect.
For the week: the DJIA, NASDAQ, and S&P 500 gained 1.03%, 1.97%, and 1.27% respectively.
