U.S. Stocks Jump On Wave Of Deals And Gains For Tech Companies

The AT&T logo appears above the post where it trades on the floor of the New York Stock Exchange, Monday, Oct. 24, 2016. AT&T's $85.4 billion purchase of Time Warner represents a new bet on synergy between companies that distribute information and entertainment to consumers and those that produce it. (AP Photo/Richard Drew)

The AT&T logo appears above the post where it trades on the floor of the New York Stock Exchange, Monday, Oct. 24, 2016. AT&T’s $85.4 billion purchase of Time Warner represents a new bet on synergy between companies that distribute information and entertainment to consumers and those that produce it. (AP Photo/Richard Drew)

NEW YORK — U.S. stocks are rising Monday morning following a series of corporate deals. The largest by far is AT&T’s plan to buy Time Warner for $85.4 billion, but investors aren’t sure if the combination will happen. Aerospace company Rockwell Collins agreed to buy B/E Aerospace. Technology and industrial companies are making some of the largest gains while phone companies are lagging the rest of the market.

KEEPING SCORE: The Dow Jones industrial average gained 82 points, or 0.5 percent, to 18,228 as of 10:10 a.m. Eastern time. The Standard & Poor’s 500 index rose 10 points, or 0.5 percent, to 2,151. The Nasdaq composite climbed 45 points, or 0.9 percent, to 5,302.

HOLD THE PHONE: Over the weekend telecom giant AT&T agreed to buy Time Warner, the entertainment conglomerate that owns HBO, CNN and Warner Bros. The companies valued the deal at $85.4 billion, or $107.50 per Time Warner share. Time Warner jumped almost 8 percent Friday but gave back some of those gains Monday morning. Both presidential tickets and other political figures have already expressed opposition or skepticism about the deal, and investors also worried about the high price AT&T is paying and the large amount of debt it would take on.

AT&T fell 57 cents, or 1.5 percent, to $36.92 while Time Warner lost $2.22, or 2.5 percent, to $87.26.

LIFTOFF: Aviation electronics company Rockwell Collins agreed to buy B/E Aerospace for $62 a share, or $6.4 billion in cash and stock. B/E Aerospace climbed $7.92, or 15.7 percent, to $58.54 while Rockwell Collins gave up $4.24, or 5 percent, to $80.22.

CLICK, DEAL: TD Ameritrade agreed to buy competitor Scottrade. The $4 billion deal would bring together two big online brokerages at a time when investors are choosing index funds over stock picking. TD Ameritrade slid 74 cents, or 2 percent, to $36.34.

GIMME: China Oceanwide Holdings agreed to buy financial services firm Genworth Financial for $5.43 per share, or $2.7 billion. That failed to get investors excited, however, and Genworth dropped 41 cents, or 8 percent, to $4.80. Genworth has taken big losses since the financial crisis. It was worth about $25 a share at the end of 2007, and while its stock has bounced back a few times it hasn’t approached that level since. It fell about 50 percent in 2014 and again in 2015.

DIALED IN: Wireless carrier T-Mobile jumped after reporting better-than-expected results for the third quarter. The company said it gained 2 million customers over the last three months and said it expects greater growth for the year. T-Mobile gained $3.04, or 6.5 percent, to $49.79.

NEED SOME TISSUES: Consumer products maker Kimberly-Clark fell $3.17, or 2.7 percent, to $116.41. The maker of consumer products such as Huggies diapers and Kleenex tissue reported weak results for the quarter and cut its annual sales forecast.

ENERGY: Benchmark U.S. crude fell 52 cents, or 1 percent, to $50.33 a barrel in New York. Brent crude, used to price international oils, shed 41 cents to $41.37 a barrel in London.

CURRENCIES: The dollar rose to 104.20 yen from 103.85 yen. The euro edged up to $1.0887 from $1.0871.

BONDS: Bond prices slipped. The yield on the 10-year Treasury note rose to 1.76 percent from 1.74 percent.

OVERSEAS: Germany’s DAX gained 0.9 percent and France’s CAC40 was up 0.9 percent. The FTSE 100 of Britain lost 0.1 percent. Hong Kong’s Hang Seng jumped 1 percent. They were bolstered by reports that China’s banking watchdog called for stricter oversight of the real estate market and controls on risks related to industries with excess capacity and local government debts. Japan’s Nikkei 225 rose 0.3 percent and South Korea’s Kospi climbed 0.7 percent.

By MARLEY JAY – Oct. 24, 2016 10:19 AM EDTAP

___

AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at http://bigstory.ap.org/journalist/marley-jay

 
 

News Sources

  • ABC
  • Access Hollywood
  • Associated Press
  • BBC
  • Bloomberg
  • Boston Globe
  • C-SPAN
  • CBS
  • Chicago Sun-Times
  • Christian Science Monitor
  • Center for Public Integrity
  • CNN
  • Congressional Quarterly
  • Democracy Now!
  • Digg
  • E! Online
  • Entertainment Weekly
  • Financial Times
  • Forbes
  • Foreign Policy
  • Fortune
  • Front Street Magazine

  • U.S. News, World News
  • Business, Politics
  • Entertainment, Sports
  • Art, Lifestyle
  • Videos And More
  • News Sources

  • Fox News
  • Google News
  • Guardian
  • Huffington Post
  • Independent
  • LA Weekly
  • Los Angeles Times
  • McClatchy
  • Mother Jones
  • National Journal
  • NBC New
  • New York Post
  • New York Times
  • Newsweek
  • Newsy
  • NPR
  • PBS NewsHour
  • People
  • Politico
  • Reuters
  • TPM
  • Washington Post
  • Thanks For Your Support!

     

    Copyright © 2021 Front Street. All Rights Reserved.

    Skip to toolbar