Arab Today, arab today us stocks jump on deals despite earnings doubts
Last Updated : GMT 12:17:03
Arab Today, arab today
Arab Today, arab today

US stocks jump on deals despite earnings doubts

Arab Today, arab today

Arab Today, arab today US stocks jump on deals despite earnings doubts

Traders work at Nasdaq MarketSite in New York
New York - AFP

A surge in corporate dealmaking helped lift US stocks this week, with General Electric, Royal Dutch Shell and FedEx all unveiling major transactions.

The wave of mergers and acquisitions offset investor wariness as earnings season got underway to low expectations.

For the week, the Dow Jones Industrial Average gained 244.41 points (1.66 percent) to 18,057.65.

The broad-based S&P 500 rose 35.10 (1.70 percent) to 2,102.06, while the tech-rich Nasdaq Composite Index jumped 109.04 (2.23 percent) to 4,995.98.

The throng of deals means it is "dangerous not to be in stocks right" because of the risk of missing a takeover with a fat premium, said Mace Blicksilver, director of Marblehead Asset Management.

"There's this jockeying going on to find out who's going to be the next target, and it's across all sectors," he added.

Some analysts think energy companies could be especially aggressive deal-makers after Shell announced it would buy the BG Group for $70 billion.

The thinking is that the sector could see another wave of activity comparable to the late 1990s when Exxon bought Mobil, Chevron acquired Texaco and BP took over Amoco. Oil prices have fallen about 50 percent since June.

Pharmaceuticals also remain active. In the latest big campaign in the sector, Mylan offered $28.9 billion for Perrigo, in a move that would combine two companies that have themselves grown by acquisition. Analysts consider both Mylan and Perrigo as takeover targets themselves.

GE announced Friday it was selling $26.5 billion in real estate assets immediately as part a restructuring to sell most of the $500 billion in assets of GE Capital over the next two years.

Earlier in the week, US delivery service FedEx said it would buy Dutch rival TNT Express for 4.4 billion euros ($4.8 billion) in a big bet on Europe. FedEx chief executive Frederick Smith cited the strong dollar as a factor in the deal.

- Earnings outlook weak -

The gains in US stocks came in parallel with a strong week for European and Japanese stocks. Analysts attribute the moves overseas to aggressive monetary policies in Japan and the eurozone that have driven down their currencies and raised the competitiveness of their manufactured goods.

On Friday, equity markets in Germany and Britain hit all-time highs while the French CAC rocketed to a seven-year peak. Similarly, Japan's Nikkei 225 has also been on a strong run, hitting 20,000 Friday before retreating.

Jack Ablin, chief investment officer at BMO Private Bank, predicted investors would pump more money into overseas equities in the coming months, especially if the upcoming US earnings season is a bust.

"The market is trading at a premium relative its history and we'll have to see if the earnings justify the valuations," Ablin said of US stocks.

Corporate news will remain in focus next week, with earnings reports from large financials, such as JPMorgan Chase and Goldman Sachs, and several other large companies, including GE, Intel and Netflix.

Expectations are low. Companies in the S&P 500 are expected to report an average earnings decline of 3.2 percent, with the biggest hit in energy, which is projected to report a 64 percent drop.

The US economic calendar includes retail sales, industrial production and housing starts for March. The International Monetary Fund and World Bank hold their annual spring meetings in Washington, before which the IMF will release its world economic growth projections.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us stocks jump on deals despite earnings doubts Arab Today, arab today us stocks jump on deals despite earnings doubts

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today AT&T, Verizon join Google ad boycott

GMT 10:30 2017 Thursday ,23 March

AT&T, Verizon join Google ad boycott
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Merna Waleed praises her work with Soad Hosni

GMT 07:03 2017 Wednesday ,22 March

Merna Waleed praises her work with Soad Hosni
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 07:12 2017 Tuesday ,21 March

Donia Abdel Aziz participates in "Game of Silence"

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 07:03 2017 Thursday ,23 March

Spider Venom May Offer Hope to Stroke Victims

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday