This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Finish Strong on Deals News

NEW YORK ( TheStreet) -- Stocks finished higher Monday, propelled by a flurry of deals news, strong earnings and signs of economic activity returning to normal in Egypt.

The Dow Jones Industrial Average rose 69 points, or 0.6%, at 12,161 after rising as high as 12,189 earlier in the session. The S&P 500 was higher by 8 points, or 0.6%, at 1,319, and the Nasdaq was ahead by 15 points, or 0.5% at 2,784.

Capital goods, conglomerates and financial sectors led the rally, while energy stocks underperformed.

Bank of America (BAC), American Express (AXP), and JPMorgan (JPM) topped the Dow while Pfizer (PFE), Kraft Foods (KFT), and Verizon (VZ) were among the biggest laggards.

About 1.7 billion shares traded on the Nasdaq, while 877 million shares changed hands on the New York Stock Exchange. Market breadth was positive with 2 out of every three stocks traded on the NYSE closing higher.

Monday's session brought a spate of deals news, including Danaher's (DHR) agreement to buy biomedical testing equipment maker Beckman Coulter (BEC) for $83.50 a share in cash, or roughly $6.8 billion, including assumed debt. Shares of Danaher spiked 2.2% to close at $49.03 and Beckman Coulter's stock gained 9.9% to $82.65.

AOL (AOL) agreed to acquire the online news site The Huffington Post for $315 million. As part of the deal, the site's co-founder and Editor-in-Chief Arianna Huffington will be named president and editor-in-chief of The Huffington Post Media Group , which will integrate all Huffington Post and AOL content. AOL's stock shed 3.4% at $21.19.

Offshore contract drilling company Ensco (ESV) agreed to acquire Pride International (PDE) for $41.60 a share in cash and stock. Pride International's stock jumped 15.7% to $39.80 while Ensco's stock shed 4.2% to $52.13.

Warren Buffett's Berkshire Hathaway (BRK-B) agreed to buy the remaining 19.9% stake of Wesco Financial (WSC) for $547.6 million. Shares of Wesco gained 1.8% to $387.50.

Peter Tuz, Chase Investment Counsel president, said Monday's gains were merger driven.

"You're seeing companies spend their money and I think that's improving sentiment. Plus, the fact that we didn't see any deterioration in the Egypt situation over the last couple of nights is probably helping a little bit, too," Tuz said.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AOL $0.00 0.00%
ESC $33.46 -0.39%
CHK $5.80 0.00%
AAPL $95.18 0.00%
FB $117.43 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs