Markets Higher, Closing News 5/01/12

Stocks rose today following better than forecasted manufacturing data in the US and a better than predicted purchasing managers' index from China, which overshadowed lingering fears of a global slowdown. Investors ignored resurfacing concerns about Europe, particularly Spain’s debt crisis and weaker PMI figures from the UK as stocks rallied.


The Institute for Supply Management reporting showed factory output unexpectedly rose in April to 54.8 from 53.4 a month earlier, in contrast to recent regional reports that indicate manufacturing is expanding less vigorously than last year.  A reading greater than 50 signals growth.  The median forecast of economists surveyed by Bloomberg News called for a drop to 53 versus estimates of the 79.


Two Federal Reserve Bank (“Fed”) officials were commenting on CNBC today and shared opposing views with regards to further stimulus.  Atlanta Fed President Dennis Lockhart said he has not changed his economic outlook given the recent mixed data and feels as though quantitative easing is not required at this time.  On the other hand, Chicago Federal President Charles Evans noted that the Fed has a “tremendous” amount of room to further ease policy since the U.S. in unlikely to see a “burst” of inflation.    


Market Indices/Statistics:



  • Dow closed up 65.69 pts/+0.50% to 13,279.32

  • S&P closed up 7.91 pts/+0.57% to 1,405.82

  • Nasdaq closed up 4.08 pts/+0.13% to 3,050.44

  • 22 of the 30 Dow stocks closed higher

  • All  10 S&P 500 sectors closed up

  • Energy was the best performing sector (7.53%)

  • The VIX ended up 1.17 at 16.61

  • Oil is up $1.16 to $106.04

  • Nat Gas is up $0.0700 to $2.464

  • Gold is down $2.03 to $1,662.40

  • Euro vs. Dollar is down $0.0007 to $1.3235

  • Dollar vs. Yen is up $0.0495 to $79.8700

Companies in the News


Wolverine World Wide Inc., (WWW) Golden Gate Capital, and Blum Capital Partners announced they are acquiring Collective Brands Inc. (PSS) in a transaction valued at about $2 billion including debt or  $21.75 a share in cash.  Wolverine closed at $40.10, down $1.85 and Collective Brands closed at $21.16, up $0.39.


Marathon Petroleum Corp. (MPC) is exploring potential formation and IPO for MLP. The board has directed an evaluation team to prepare registration statement.  Marathon Petroleum closed at $41.21, down $0.40.


PF Chang’s China Bistro Inc. (PFCB) surged 30% today after the company announced that they will be acquired by private investment firm, Centerbridge Partners, L.P., in a deal worth roughly $1.1 billion.  PF Chang’s closed at $51.48, up $11.79.


Bank of America Corp (BAC) traded up after the company announces their plans to cut an additional 400 jobs as part of their “project New BAC”, a project launched last spring aiming to eliminate a total of 30,000 jobs globally.  Bank of America closed at $8.31, up $0.20.


Earnings


Avon Products Incorporated (AVP) reports Q1 adjusted EPS 10c, vs. Est. 28c and Q1 revenue $2.58B, vs. Est. $2.52B. Avon closed at $19.87, down $1.73


CBS (CBS) reports Q1 adjusted EPS 54c, vs. Est. 44c and Q1 revenue $3.92, vs. Est. $3.78 B.  CBS closed at $33.42, up $0.04.


Motorola Mobility Holdings Inc (MMI) reports Q1 adjusted EPS -3c, vs. Est. 1c and Q1 revenue $3.1B, vs. Est. $3B.  Motorola closed at $38.76, down $0.06.


Coming Wednesday:


Economic Reports:  ADP Employment Report and Factory Orders


 


Paras Madho


NYSE Euronext


Market Watch & Corporate Actions


20 Broad Street | New York NY 10005
P:  (212) 656-5404


pmadho@nyx.com


 


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