A 1% contraction for the U.S. economy during the first three
months of the year was not enough to derail Wall Street from
another day of gains, with the S&P 500 pushing to a new
all-time high while the Dow Jones Industrials Average and the
Nasdaq Composite index also posted moderate gains. All 10 industry
sectors in the S&P 500 rose today, paced by advances for energy
and materials stocks along with shares of consumer companies.
Investors focused on the GDP report's details, including improved
consumer spending, over the headline shocker.
The U.S. economy contracted by 1.0% during Q1, the Commerce
Department reported today, double the 0.5% reduction Wall Street
was expecting for the period. But much of the weakness was
attributed to harsh winter weather during the quarter, with traders
instead looking to strength in consumer spending and fixed
investment to support today's market advance.
Gains today also were supported by a fresh wave of corporate
mergers and acquistions. Tyson Foods (
) made a $6.6 billion offer for Hillshire Brands (
), topping the $5.5 billion bid earlier this week from Pilgrim's
). Apple (
) finalized its largest deal ever, paying $3 billion for Beats
Electronics while Sprint's (
) board chairman made his case before U.S. regulators seeking
permission to buy T-Mobile (TMUS).
Commodities finished mostly lower although crude oil for July
delivery settled 86 cents higher at $103.58 per barrel. June
natural gas fell 6 cents to finish at $4.56 per 1 million BTU. June
gold was down $3 to $1,256.30 per ounce while July silver fell 4
cents to $19.02 per ounce. July copper declined 3 cents to $3.14
Here's where the U.S. markets stood at end-of-day:
Dow Jones Industrial Average up 65.56 (+0.39%) to 16,698.74
S&P 500 up 10.25 (+0.54%) to 1,920.03
Nasdaq Composite Index up 22.87 (+0.54%) to 4,247.95
Hang Seng Index down 0.30%
Shanghai China Composite Index down 0.47%
FTSE 100 Index up 0.29%
(+) HSH, Climbs to 16-year high after Tyson Foods (
) unveils $6.8 bln buyout proposal, with its $50-a-share bid
trumping a $45-a-share bid by Pilgrims Pride (
(+) MBIS, Sells its editorial and e-commerce assets, including
its job board and education unit, to Prometheus Global Media for $8
mln in cash. Surviving firm will operate as Mecklermedia Corp,
focusing on international trade shows.
(+) XGTI, Announces second U.S. patent award - OFDM Symbol
Diversity Combiner for Burst Interference Mitigation - in less than
a week for its radio interference-mitigation techniques.
(-) TLYS, Q1 revenue climbs 1.8% from year-ago levels to to
$111.1 mln but lags Street view by $2.12 mln. EPS of $0.02 matches
estimates. Q2 earnings forecast trails consensus by at least $0.06
(-) SPEX, Sells 10 mln shares of Series J convertible preferred
stock in a registered direct offering at $2 apiece, generating
$18.3 mln in net proceeds after offering expenses. Each preferred
share converts into one share of common stock.
(-) GMAN, Falls to all-time low after posting $0.04 per share Q1
net loss, missing the analyst consensus looking for a $0.02 per
share profit. Net sales rise 8.8% year over year to $143 mln,
beating estimates by around $1.1 mln.
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