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Market Wrap: Dell Does Deal; U.S. Services Expand...Slowly; BlackBerry is Back!

February 5, 2013 5:55 PM EST Send to a Friend
Market wrap-up for February 5th

End of the Day: S&P 500 up 15.6 to 1,511.29; Dow Jones up 99.2 to 13,979.30; Nasdaq up 40.4 to 3,171.58

The following is a brief summary of events moving markets today:

* Dell Inc. (Nasdaq: DELL) finally announced signing a definitive merger agreement under which Michael Dell, Dell’s Founder, Chairman and Chief Executive Officer, in partnership with global technology investment firm Silver Lake, will acquire Dell for $13.65 per share in cash. The deal has a total enterprise value of $24.4 billion.

* President Obama held a press event today aimed at convincing Congress to pass a series of smaller spending cuts and tax overhaul measures to delay in onset of automatic spending cuts which will kick in next month. About $85 billion in cuts tied to defense spending and other domestic programs are set to be implement on March 1st, data shows.

* McGraw-Hill (NYSE: MHP) was lower today as the U.S. DoJ filed a suit against its S&P Ratings Services unit over CDO and RMBS ratings made prior to the financial meltdown of 2008. The WSJ notes that the DoJ may be gunning for a settlement to the tune of $5 billion. The penalties would be equal to losses realized by federally-insured financial institution which bought CDOs rated by S&P.

* MasterCard (NYSE: MA) doubled its quarterly dividend to 60 cents this morning, while also authorizing a new $2 billion stock buyback plan. Yield on the dividend is just 0.5 percent annually, but total return on the announcement kept MasterCard in the green on the session. For more color, click here.

* Virgin Media (Nasdaq: VMED) popped higher on the session as it affirmed being in takeover talks with Liberty Global (NASDAQ: LBTYA) (NASDAQ: LBTYB). Shares ended the session up nearly 18 percent. For more on the discussions, click here.

* The Institute for Supply Management said that its Non-manufacturing purchasing index fell to 55.2 in January, from 55.7 in December. The Street was looking for a reading of 55.6. The employment index hit 57.5 in the month, from 55.3 in December. That is the highest reading since February 2006, according to data.

* BlackBerry (Nasdaq: BBRY) was hit with a smattering of opinions on initial sales of its Z10 smartphone in the U.K., as well as pre-orders elsewhere. For the most part, sentiment was positive, with many believing supplies in the country were thin. Deutsche Bank was one dissenter, saying employees weren't convincing enough to draw in buyers. For more colorclick here.

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