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
TheStreet Open House

Fiat Buys Out Chrysler for $4.35 Billion

Stock quotes in this article: MSFT

The video this transcript is based on appeared on January 2.

NEW YORK ( TheStreet) -- U.S. stock futures are pointing to a lower open on Wall Street as Fiat signs a deal to buy the remainder of Chrylser it does not already own and PMI Data out of Europe and Asia signals a mixed picture on the manufacturing front.

VIDEO TRANSCRIPT:

You're looking at Times Square on a cold and snowy morning where all the traces of New Year's Eve merriment are gone.  The northeast is bracing for what many are saying will be the season's first blizzard with many travel delays expected - already Newark-Liberty has cancelled flights in anticipation of the bad weather. Happy new year, I'm Ruben Ramirez at the Nasdaq MarketSite. Jon Marino is off today. We've got stock index futures pointing to a lower open when trading gets underway here in New York.

Let's get started with this morning's European action. Carmaker Fiat has reached a deal to take full control of Chrysler in a $4.35 billion dollar deal. The agreement helps clear the way for the consolidation of the two automakers. The deal values Chrysler at just over $10 billion. That's roughly the middle of the valuation banks were looking for when they were looking to underwrite a potential IPO. The deal is expected to close by January 20th.

Now, let's take a look overseas where we're getting PMI data. European markets are moving lower this morning. The Eurozone's manufacturing sector expanded for a third straight month despite further weakness in France. In Asia, we did continue to see a slowdown in China's manufacturing sector. That data did have an impact on Asian markets overnight.  In Japan, the Nikkei ended the Thursday session unchanged.

Back here in the U.S. the big question of course is whether the bulls can continue their run on Wall Street.  Take a look at the charts on the wall here - the Dow had its best run since 1995, ending the year at 1675.76. Also take a look at the S&P 500. It ended the year at 1848, its best year since 1997.

Our action alert this morning is Microsoft (MSFT) . Our colleagues at RealMoney say Microsoft may not be the most loved company out there but if you care about making money, it's the stock to own in 2014.  The reason - the tech giant's deal with Nokia should ensure a steady stream of quality new handsets. And don't forget Microsoft's current dividend yield of 3-percent, which our colleagues say could quickly turn into a 6-percent yield.  
 
For more on stocks you should own in 2014 check out TheStreet.com.  At the Nasdaq MarketSite in Times Square, I'm Ruben Ramirez. Have a great day.

Written by Ruben Ramirez in New York.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs