News Column

Coutts-US close: Data, M&A outweigh Iraq concerns as stocks inch higher

June 17, 2014

ENP Newswire - 17 June 2014

Release date- 16062014 - US close: Data, M&A outweigh Iraq concerns as stocks inch higher.

NY manufacturing, industrial output beat forecasts - Iraq tensions continue to escalate - IMF cuts growth forecast - Covidien, TW Telecom, Williams Cos rise on M&A activity Dow Jones: 0.03% Nasdaq: 0.24% S&P 500: 0.10% US stocks closed a choppy session with small gains on Monday, as better-than-expected economic data and M&A activity outweighed concerns about the ongoing violence in Iraq. The Dow Jones Industrial Average finished 0.03% higher, while the S&P 500 rose 0.10% and the Nasdaq gained 0.24%.

Chris Beauchamp, Market Analyst at IG said that despite the positive moves on Wall Street, markets were rising 'only tentatively'.

He said: 'After the biggest weekly loss in two months, a lot of investors will be dusting themselves down and asking what the next move is.' The US is reportedly considering talks with Iran to support the Iraqi government in its fight against Sunni Islamist insurgents.

This comes after continued bloodshed between militants from the Islamic State of Iraq and the Levant (ISIL) and Baghdad's army in the north of the country in the past week.

The ISIL fighters took over the city of Tal Afar in northwest Iraq overnight after a heavy battle on Sunday, while images were released online allegedly showing the killing of hundreds of Iraqi soldiers. Traders in the States were also shrugging off the news that the International Monetary Fund (IMF) has cut its forecast for growth in the US this year from 2.8% to 2%. Economic data, Fed in focus The Empire State manufacturing index rose to 19.28 in June, up from 19.01 the month before, showing that activity in the sector grew faster than expected (consensus: 15.0). US industrial production increased by 0.6% in May, the third increase in four months.

This was a rebound from the revised 0.3% contraction in April and ahead of the the 0.5% rise expected. Meanwhile, the NAHB Housing Market Index increased to 49 in June from 45 previously (consensus: 47). Data was in focus ahead to the latest two-day policy meeting at the Federal Reserve, which kicks off tomorrow.

Analysts widely expect the US central bank to continue tapering asset purchases by $10bn a month to $35bn, but will be keeping an eye out for comments on the economic outlook from Fed Chair Janet Yellen. Covidien rockets on Medtronic takeover Shares in Irish medical devices group Covidien surged in pre-market trade after larger US rival Medtronic agreed to buy the company for $42.9bn in a cash-and-stock deal.

The US group is paying $93.22 a share for Covidien, a 50% premium to Friday's closing price, in a move to shift its tax base abroad. TW Telecom rose after Level 3 Communications agreed to buy the internet firm for $7.3bn including debt.

Level 3, however, fell on the news. Energy group Williams Cos.

was a high riser after announcing a $6bn takeover of natural gas services firm Access Midstream Partners. Pharmaceutical firm Bluebird jumped after reporting positive results from a study of its gene therapy treatment. Yahoo fell after results from part-owned Chinese e-commerce firm Alibaba disappointed, showing that quarterly operating margins fell sharply year-on-year. S&P 500 - Risers Covidien Plc (COV) $86.75 +20.45% Williams Companies Inc.

(WMB) $56.02 +18.74% Goodyear Tire & Rubber Co.

(GT) $27.26 +3.89% First Solar Inc.

(FSLR) $66.85 +3.69% Sandisk Corp.

(SNDK) $102.00 +3.58% Intuitive Surgical Inc.

(ISRG) $409.82 +3.28% Newfield Exploration Co (NFX) $41.59 +2.82% Centerpoint Energy Inc.

(CNP) $24.62 +2.54% Tenet Healthcare Corp.

(THC) $48.10 +2.41% Akamai Technologies Inc.

(AKAM) $60.25 +2.40% S&P 500 - Fallers Vertex Pharmaceuticals Inc.

(VRTX) $67.12 -8.67% Yahoo! Inc.

(YHOO) $34.80 -5.79% Adt Corp (ADT) $33.35 -1.80% Peabody Energy Corp.

(BTU) $16.51 -1.67% Allegheny Technologies Inc.

(ATI) $40.90 -1.64% Wells Fargo & Co.

(WFC) $51.08 -1.58% Allergan Inc.

(AGN) $159.26 -1.56% Zions Bancorporation (ZION) $29.17 -1.52% Google Inc.

(GOOGL) $552.32 -1.43% Bank Of New York Mellon Corp.

(BK) $34.86 -1.41% Dow Jones I.A - Risers Chevron Corp.

(CVX) $128.60 +1.05% Home Depot Inc.

(HD) $78.87 +1.02% Coca-Cola Co.

(KO) $40.67 +0.74% Microsoft Corp.

(MSFT) $41.50 +0.65% McDonald's Corp.

(MCD) $101.11 +0.62% Walt Disney Co.

(DIS) $83.29 +0.59% Intel Corp.

(INTC) $30.00 +0.44% Verizon Communications Inc.

(VZ) $49.32 +0.28% Exxon Mobil Corp.

(XOM) $102.90 +0.24% Pfizer Inc.

(PFE) $29.60 +0.24% Dow Jones I.A - Fallers Unitedhealth Group Inc.

(UNH) $78.00 -1.49% General Electric Co.

(GE) $26.83 -0.78% Cisco Systems Inc.

(CSCO) $24.52 -0.73% American Express Co.

(AXP) $94.38 -0.50% Visa Inc.

(V) $210.28 -0.48% JP Morgan Chase & Co.

(JPM) $56.85 -0.33% Merck & Co.


(MRK) $58.06 -0.31% E.I.

du Pont de Nemours and Co.

(DD) $68.10 -0.29% AT&T Inc.

(T) $34.97 -0.17% International Business Machines Corp.

(IBM) $182.36 -0.11% Nasdaq 100 - Risers Tesla Motors Inc (TSLA) $224.65 +8.83% Sandisk Corp.

(SNDK) $102.00 +3.58% Intuitive Surgical Inc.

(ISRG) $409.82 +3.28% Akamai Technologies Inc.

(AKAM) $60.25 +2.40% Micron Technology Inc.

(MU) $31.91 +2.37% Monster Beverage Corp (MNST) $70.38 +2.19% TripAdvisor Inc.

(TRIP) $103.96 +1.94% Altera Corp.

(ALTR) $34.52 +1.53% Catamaran Corp (CTRX) $43.59 +1.23% Adobe Systems Inc.

(ADBE) $67.61 +1.18% Nasdaq 100 - Fallers Vertex Pharmaceuticals Inc.

(VRTX) $67.12 -8.67% Yahoo! Inc.

(YHOO) $34.80 -5.79% Google Inc.

(GOOGL) $552.32 -1.43% Liberty Global plc Series A (LBTYA) $42.73 -1.43% Vimpelcom Ltd Ads (VIP) $8.32 -1.42% Express Scripts Holding Co (ESRX) $70.74 -1.19% Wynn Resorts Ltd.

(WYNN) $199.08 -0.98% Tractor Supply Company (TSCO) $64.36 -0.98% Discovery Communications Inc.

Class A (DISCA) $76.99 -0.94% Stericycle Inc.

(SRCL) $117.49 -0.83% BC

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Source: ENP Newswire

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