Dow Closes Above 11,000
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Price: $68.98 +5.23%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.6%
Revenue Growth %: +31.1%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.6%
Revenue Growth %: +31.1%
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Merger news, hopes for a strong earnings season and a weakening dollar allowed the Dow Jones Industrial Average to close above 11,000 on Monday for the first time since September 2008.
The Dow closed up a marginal 8.62 points to 11,005.97, bolstered by component Alcoa Inc. (NYSE: AA) which jumping 1.3 percent ahead of earnings after the close.
Major indices have been moving higher for weeks amid optimism for a strong earnings season, as the S&P 500 nearly reached a milestone of its own by coming within a point of 1,200 before closing Monday at 1196.48, a 0.2 percent increase.
The Nasdaq Composite Index also edged higher, helped by the buyout talk that is surrounding Palm Inc. (NASDAQ: PALM), which jumped 17.1 percent after Bloomberg News reported the smart phone maker was seeking a potential sale.
The dollar weakened on Monday against the euro, as the euro zone nations announced $40 billion in available funds for struggling member Greece at much lower interest rate than it had been offering.
The details of the aid being made ready for Greece helped to clear up one of the few anchors holding back stocks this year.
Two big deals were also announced on Monday that gave investors hope for future M&A activity.
Mirant Corp. (NYSE: MIR) agreed to terms on a deal to acquire Reliant Energy Inc. for $1.61 billion, while DynCorp International Inc. (NYSE: DCP) announced a deal is in place to be bought by private equity firm Cerberus Capital Management for $1 billion.
In addition, Halliburton (NYSE: HAL) bought Boots & Coots (NYSE: WEL) for $3 per share.
In addition to the announced deals, there were many potential M&A deals under review. Palm (Nasdaq: PALM) reportedly hired Goldman Sachs and Frank Quattrone to explore a possible sale. CPK (Nasdaq: CPKI) confirmed it is exploring options, including a possible sale. It was also reported that Abraxis BioScience (ABII) is exploring a possible sale.
The Dow closed up a marginal 8.62 points to 11,005.97, bolstered by component Alcoa Inc. (NYSE: AA) which jumping 1.3 percent ahead of earnings after the close.
Major indices have been moving higher for weeks amid optimism for a strong earnings season, as the S&P 500 nearly reached a milestone of its own by coming within a point of 1,200 before closing Monday at 1196.48, a 0.2 percent increase.
The Nasdaq Composite Index also edged higher, helped by the buyout talk that is surrounding Palm Inc. (NASDAQ: PALM), which jumped 17.1 percent after Bloomberg News reported the smart phone maker was seeking a potential sale.
The dollar weakened on Monday against the euro, as the euro zone nations announced $40 billion in available funds for struggling member Greece at much lower interest rate than it had been offering.
The details of the aid being made ready for Greece helped to clear up one of the few anchors holding back stocks this year.
Two big deals were also announced on Monday that gave investors hope for future M&A activity.
Mirant Corp. (NYSE: MIR) agreed to terms on a deal to acquire Reliant Energy Inc. for $1.61 billion, while DynCorp International Inc. (NYSE: DCP) announced a deal is in place to be bought by private equity firm Cerberus Capital Management for $1 billion.
In addition, Halliburton (NYSE: HAL) bought Boots & Coots (NYSE: WEL) for $3 per share.
In addition to the announced deals, there were many potential M&A deals under review. Palm (Nasdaq: PALM) reportedly hired Goldman Sachs and Frank Quattrone to explore a possible sale. CPK (Nasdaq: CPKI) confirmed it is exploring options, including a possible sale. It was also reported that Abraxis BioScience (ABII) is exploring a possible sale.
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