News Column

Stock Market Inches Up in Midday Trading

June 9, 2014

Associated Press

Markets rose slightly by midday Monday (AP)
Markets rose slightly by midday Monday (AP)

NEW YORK (AP) — The stock market nudged higher Monday after a handful of U.S. companies announced deals. Family Dollar's stock jumped following news that investor Carl Icahn has taken a stake in the company.

KEEPING SCORE: A half hour before noon, the Standard & Poor's 500 index was up four points, or 0.2 percent, to 1,954.

The Dow Jones industrial average rose 34 points, or 0.2 percent, to 16,958, while the Nasdaq composite index rose 17 points, or 0.4 percent, to 4,338.

On Friday, the S&P 500 index notched another record high, its eighth in 10 trading days.

HOW FAR: The market has been on a steady climb for three weeks running, pulling the S&P 500 up 4 percent in a month. Judging by some measures, that sudden success makes it look like the S&P 500 has moved "too far, too fast," said Joe Bell, senior equity analyst at Schaeffer's Investment Research. But there are still plenty of investors laying bets against the market. "We don't think there's an overwhelming amount of optimism right now," he said.

TYSON WINS: Tyson Foods emerged as the winner in a bidding war for Hillshire Brands, beating an offer by Pilgrim's Pride for the meat-processing company. Tyson raised its offer to $63 a share, beating Pilgrim's Pride's offer of $55 a share. Hillshire Brands jumped $2.95, or 5 percent, to $61.87, while Tyson Foods slipped $1.69, or 4.2 percent, to $38.32.

MERGER MONDAY: Merck announced a deal to buy Idenix Pharmaceuticals for $3.85 billion, an acquisition that would give the pharmaceutical giant Idenix's array of treatments for hepatitis C. Idenix soared $16.97, or 234 percent, to $24.20.

ICAHN: In a regulatory filing on Friday, Carl Icahn said he and his affiliates have picked up a 9 percent stake in Family Dollar, a discount store, and plan to look for changes to boost the company's value. Family Dollar's stock jumped $7, or 12 percent, to $67.52.

APPLE SPLITS: Apple's stock rose 73 cents, or 0.8 percent, to $92.95. That's after closing at of $645.57 on Friday. What happened? The difference reflects Apple's 7-for-1 stock split. Every Apple stockholder received six additional shares for every share they owned. On its own, the split didn't change Apple's market value.

BONDS AND COMMODITIES: In the market for U.S. government bonds, the yield on the 10-year Treasury edged up to 2.62 percent from 2.59 percent late Friday. Yields rise when bond prices fall. The price of oil rose $1.54 to $104.19 a barrel.


Original headline: Stock market rises slightly in midday trading

Source: Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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