Market Wrap: Spain Cuts for FY13; RIM Rips on Results; A Merger of Cushions; Google's Special Day


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September 27, 2012 5:37 PM EDT Send to a Friend
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Market wrap-up for September 27th

End of the Day: S&P 500 up 13.8 to 1,447.15; Dow Jones up 72.5; Nasdaq up 42.9 to 3,136.60

The following is a brief summary of events moving markets today:
  • What was the lottery tax beforehand?: By the people, for the people: Spanish leaders unveiled a new budget for 2013 which Deputy Prime Minister Soraya Saenz said, "was a crisis budget aimed at exiting a crisis. Some of the key points of the budget are:
    • A freeze in public sector pay for the third consecutive year;

    • Ministerial spending cuts of 12 percent on average;

    • A new 20 percent tax on lotter wins above €2,500;

    • Independent oversight on government finances.
    Areas that would see increased spending next year are student scholarships, pensions, and interest payments.

  • Economic slump: Durable goods orders fell 13.5 percent in August, versus consensus estimates calling for 5 percent dip. Transportation dipped 34.9 percent, the largest contraction for the month. For more color on the data, click here.

  • RIM shot!: Research In Motion Ltd (Nasdaq: RIMM) is ripping in late trading Thursday following better-than-expected second-quarter results. RIM reported a loss of 27 cents per share on sales of $2.9 billion, both beating consensus views calling for a loss of 46 cents and sales of $2.5 billion. RIM reported shipping 7.4 million BlackBerry units in the quarter.

    The earnings beat was fueled by an increase of 80 million global subscribers, which was revealed earlier this week.

    For more on the results, click here.

  • The world's coziest merger: Tempur-Pedic International Inc. (NYSE: TPX) said it entered into an agreement to acquire Sealy Corp. (NYSE: ZZ) for $2.20 per share. Total value on the deal is $2.7 billion.

    Tempur-Pedic will assume or repay all of Sealy's outstanding convertible and non-convertible debt, for a total transaction value of approximately $1.3 billion. The transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to close during the first half of 2013.

  • Third times the charm?: US Airways (NYSE: LCC) flight attendants rejected a second contract offer today keeping the airline and attendants at odds once again. According to reports, the new deal would have put US Air attendants and America West Airlines under the same contract since the two airlines merged in 2005.

    About 51 percent of voting members rejected the deal, which is down from the three-to-one rejection back in March. The attendants' union said 85 percent of 6,800 eligible voted on the deal.

  • Now entering its Freshman year at high school: For Google's (Nasdaq: GOOG) 14th birthday, all it asked for was a new all-time high in its stock price...and a pony. We can say for certain, Google did not hit an all-time new high Thursday, though at $756, shares have been flirting with the level once again.

    Google went public on August 19, 2004, for an adjusted price of $100.00 (the offering price was $85 to $95), meaning investors have reaped over 650 percent in gains since that time. Have some more cake!
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