Closing Update: Dow At All Time High As Mergers and Earnings Continue to Drive Gains

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Blue-chips put in another strong performance and traded higher for the fourth consecutive day as positive earnings, merger action and strong housing data drove the Dow Jones Industrial Average to its third consecutive record high. IBM ( IBM ) and Intel ( INTC ) were leaders among DJIA components, but tech and energy stocks also outperformed.

The media sector took center stage after Rupert Mudoch's Twenty-First Century Fox ( FOX ) made an $80 billion bid for Time Warner ( TWX ). Although the offer was rejected, TWX rallied to a 12-year high while FOX slipped 5%. Tech stocks got a boost from an earnings beat by Intel and collaboration between IBM and Apple ( AAPL ) to provide business applications on new iPhones and iPads which helped offset missed earnings by Yahoo (YHOO).

The economic data was mixed starting with an above consensus gain in June PPI and disappointing industrial production and capacity utilization. However, the National Association of Home Builders said that its housing market index measuring confidence rose to a 6-month high of 53. This rekindled demand for equities after PPI caused a minor pull-back at the open.

Finally, the Federal Reserve's Beige Book of regional economic activity was largely benign with all districts reporting "modest to moderate" growth, increase in manufacturing and job growth, but with price pressures contained.

Here's where the markets stood at the close:

US MARKETS

Dow Jones Industrial Index was up 77.52 (+0.45%) to 17,138.20

S&P 500 was up 8.29 (+0.42%) to 1,981.57

Nasdaq Composite Index was up 9.58 (+0.22%) to 4,425.97

GLOBAL SENTIMENT

FTSE 100 was up 1.11%

Nikkei 225 was down 0.10%

Hang Seng Index was up 0.27%

Shanghai China Composite Index was down 0.15%

UPSIDE MOVERS

(+) TMX Rejected 21-Century Fox ( FOX ) $80 billion buyout offer

(+) ZIPR Merging with Realogy Holdings (RLGY) for $166 million

(+) AMSC Exelon plans to use American Superconductor to strengthen Chicago electric grid

(+) NEWL Initiated as 1 for 50 stock split

(+) UBIC Obtains U.S. patent for legal analysis technology

DOWNSIDE MOVERS

(-) BIOA Plans to sell 2.8 mln shares at discounted $12 per share

(-) LCI Under investigation by Connecticut Attorney General regarding pricing of digoxin.

(-) IGC FY14 revenue drops 72%



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: IBM , INTC , FOX , TWX , AAPL

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