Market Wrap: Carlyle's Colorful Grab; Economic Data Weighs; Barclays' New Leader; More Spending!

August 30, 2012 5:04 PM EDT Send to a Friend
Market wrap-up for August 30th

End of the Day: Dow Jones down 106.8 to 13,000.71; S&P 500 down 11.0 to 1,399.48; Nasdaq down 32.5 to 3,048.71

The following is a brief summary of events moving markets today:
  • Stocks fell on the session Thursday as Spain delayed making a decision on a bailout until terms were clarified and mixed data from Asia and Germany did little to quell fears.

    In Germany, unemployment rose for a fifth month in August, by 29,100 to 2.91 million.

    Meanwhile, retail sales in Japan slipped more than expected, dropping 0.8 percent versus views calling for a 0.1 percent dip. On a positive note, it was the first decline in eight months, according to available data.

    South Korean manufacturer confidence rose from 70 to 75 for September, according to a reading by the Bank of Korea. Numbers below 100 indicate that pessimists outweigh optimists. Notably, August and September were the only two readings below 80 since 2009.

  • Back in the doldrums: Notably, the Dow Jones Index is at 13,000 again, while the S&P broke below the 1,400 level. The Dow Jones hasn't closed below 13,000 since August 2nd and this is the first time the S&P has closed below 1,400 since August 6th.

  • Gotten for a song. And strong coat of primer: The Carlyle Group (Nasdaq: CG) entered an agreement to acquire DuPont's (NYSE: DD) DuPont Performance Coatings (DPC) for $4.9 billion in cash.

    Speculation over the last few weeks surrounded whether Carlyle would trim its bid for DPC. Given that $4.9 billion is less than $5 billion, it looks like a success.

    According to the release: "DPC is a global supplier of vehicle and industrial coating systems with 2012 expected sales of more than $4 billion and more than 11,000 employees. The investment will be funded with equity from Carlyle Partners V and Carlyle Europe Partners III." For more, click here.

  • Barclays picks internal candidate to lead it through rough seas: Barclays PLC and Barclays Bank PLC (NYSE: BCS) announce that Antony Jenkins has been appointed as a Director and as Group Chief Executive of Barclays with immediate effect.

    Jenkins headed Barclays Retail and Business Banking (RBB) business prior to the promotion. His role as CEO for RBB includes responsibility for retail banking in Barclays Africa and Absa and he also represents Barclays as a non-executive Director on the Board of Absa Group Limited and Absa Bank Limited.

    The appointment comes about two months following the departure of former CEO Bob Diamond, after Barclays got wound up in a LIBOR manipulation scandal.

  • Ahh, spending outpaces income once again. Feels good: According to new data from the U.S. Commerce Department, consumer spending in the U.S. rose 0.4 percent in July, the first increase in three months and up from a flat reading in June. Expectations called for a 0.5 percent rise for the month.

    Personal income rose 0.3 percent, which was in-line with expectations.

    News comes following economic data on Wednesday, which had the Commerce Dept revising its GDP estimate higher for the second quarter, to 1.7 percent of growth from 1.5 percent. With an increase in spending for July, third-quarter GDP could break the two quarter slide the U.S. is currently experiencing.

    Click here for more color on the spending and saving metrics.

  • You're not off the hook yet, Nasdaq!: Knight Capital (NYSE: KCG) backed the Nasdaq OMX (Nasdaq: NDAQ) plan to repay Facebook (Nasdaq: FB) losses . The trading firm objected to the Nasdaq requirement that firms waive legal claims against the exchange company in settling.

    Following Facebook's May 18th IPO debacle, Knight said it lost about $35.4 million on the session. Currently, Nasdaq's proposal provides a pool of $62 million to firms as compensation, though most firms on Wall Street believe the losses could amount to $500 million or more.

  • A lil' more M&A for Thursday: Validus Holdings (NYSE: VR) and Flagstone Re (NYSE: FSR) a definitive merger agreement pursuant to which Validus will acquire all of the issued and outstanding shares of Flagstone. Under the terms of the agreement, Flagstone shareholders will receive 0.1935 Validus voting common shares and $2.00 in cash for each Flagstone share. The total amount was about $8.43 per share, according to the closing price of Validus on August 29th.
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