What a Week: Deal-Driven

Private equity jump-started a stalled stock market this week.

A holiday-shortened week began and ended with reminders that deep-pocketed investors stand ready to tow even the market's biggest junkers to higher prices.

Given all the private equity wheeling and dealing this year, traders have come to believe there's a possible bid for any company out there, says Art Hogan, chief market analyst at Jefferies. He says that faith goes a long way to explaining how Wall Street has put the February-March market hiccup in the rearview mirror.

Take billionaire investor Kirk Kerkorian's $4.5 billion bid for DaimlerChrysler's (DCX Quote) struggling U.S. unit. A Chrysler Group bid is hardly the biggest buyout on the block -- yet Thursday it succeeded in revving up a wheel-spinning pre-Easter market.

"M&A continues," says Hogan. "It's going to be a driver all year, and it is a strong statement on the economy and the market."

The week began with a heftier if less exciting display of M&A force, in Kohlberg Kravis Roberts' $25.6 billion buy of credit card processor First Data(FDC Quote). First Data gained 20% on the week.

Germany's Daimler jumped 4.9% Friday on news of Kerkorian's offer. Rival straggler and previous Kerkorian target General Motors(GM Quote) also gained 2.2% Friday.

Alone in reverse was the third member of the Big Three, Ford(F Quote). It slipped fractionally Thursday after it revealed that its new chief executive, Alan Mulally, got $28 million for four months of work last year.