Stock Market News for May 10, 2011 - Market News
10 Mai 2011 - 11:05AM
Zacks
After suffering a slump last week, commodities made a strong
comeback yesterday and lifted the benchmarks higher. Energy shares
joined in on the uptrend as crude prices once again rose above $100
per barrel. Meanwhile fresh worries about Greece’s credit ratings
partially limited gains.
The Dow Jones Industrial
Average (DJIA) rose 0.4% to close at 12,684.68. The Standard &
Poor 500 (S&P 500) gained 0.5% and finished the day at
1,346.29. The Nasdaq Composite Index increased 0.6% to settle at
2,843.25. The fear-gauge CBOE Volatility Index dropped down to
almost 17. On the New York Stock Exchange, composite volumes were
low, at only 3 billion shares. For every couple of stocks that
gained, one stock moved down.
Markets witnessed a massive
sell off of commodities last week as investors chose to take the
exit route, unnerved by volatility. Crude prices dropped below the
$100 per barrel mark for the first time since mid-March. Stocks had
to shoulder the consequences and benchmarks inched down by more
than 1%. Silver plunged 27% and oil
shed 15%. However, markets moved up yesterday, riding on rising
commodity and crude prices. Silver gained 5.2% while gold moved up
1%. Producers of metals and other materials were the second best
performers for the S&P 500 and gained 1.5%.
U.S. light crude jumped 5.5% to
settle at $102.55 per barrel in New York. Subsequently, the energy
index moved higher as energy companies gained 2% to post the
highest increase among the 10 industries in the S&P 500. Shares
of over 90% of the energy companies moved up, including
ConocoPhillips (NYSE:COP), Exxon Mobil Corporation (NYSE:XOM),
Chevron Corp. (NYSE:CVX), Baker Hughes Incorporated (NYSE:BHI),
Halliburton Company (NYSE:HAL), Marathon Oil Corporation
(NYSE:MRO), Frontier Oil Corp. (NYSE:FTO), Holly Corporation
(NYSE:HOC), Stone Energy Corp. (NYSE:SGY). These shares jumped
1.1%, 0.6%, 1.2%, 3.4%, 3.0%, 5.3%, 6.7%, 7.1% and 5.0%,
respectively.
A host of deals also aided
the markets’ upward movement. Alkermes, Inc. (NASDAQ:ALKS) inked a
deal with Elan Corporation (NYSE:ELN) to buy the latter’s Elan Drug
Technologies (EDT) segment, which is its drug delivery unit.
Expected to close in the third quarter of calendar 2011, this
merger is worth approximately $960 million. The merged entity will
be known as Alkermes plc and will be headquartered in Dublin,
Ireland. This deal is expected to boost Alkermes’ cash earnings
immediately following its closure and has been cleared by the board
of directors of both companies. Shares of Alkermes jumped 5.0% and
Elan Corp. climbed 4.8%.
In other news, Hertz Global
Holdings, Inc. (NYSE:HTZ) offered to buy Dollar Thrifty Automotive
Group Inc. (NYSE:DTG) in a cash and stock deal worth $72 a share.
For every Dollar Thrifty share, Hertz offered $57.60 in cash and
0.8546 of its own shares. Shares of Hertz went down 1.0% but shares
of Dollar Thrifty soared 13.8%. Meanwhile, NVIDIA Corporation
(NASDAQ:NVDA) entered into an all cash deal worth $367 million to
acquire designer of baseband processors, Icera. Shares of NVIDIA
were up 2.2%.
On the international front,
the euro-zone crisis resurfaced to unnerve the benchmarks and
limited gains to an extent. Fueling euro-zone debt concerns,
Standard & Poor’s Ratings Services downgraded Greece’s credit
rating. Greece’s credit rating was downgraded to C and B from B and
BB- for the short and long term, respectively. To add to the
regions’ woes, Moody’s Investors Service is also reviewing Greece’s
B1 local and foreign currency government bond ratings.
ALKERMES INC (ALKS): Free Stock Analysis Report
BAKER-HUGHES (BHI): Free Stock Analysis Report
CONOCOPHILLIPS (COP): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
DOLLAR THRIFTY (DTG): Free Stock Analysis Report
ELAN CP PLC ADR (ELN): Free Stock Analysis Report
FRONTIER OIL (FTO): Free Stock Analysis Report
HALLIBURTON CO (HAL): Free Stock Analysis Report
HOLLY CORP (HOC): Free Stock Analysis Report
HERTZ GLBL HLDG (HTZ): Free Stock Analysis Report
MARATHON OIL CP (MRO): Free Stock Analysis Report
NVIDIA CORP (NVDA): Free Stock Analysis Report
STONE ENERGY CP (SGY): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
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