Dow Jones today, Aug. 18, 2014: U.S. stocks soared Monday on positive housing data and growing merger and acquisition activity. The S&P 500 Index is again taking aim at the historic 2,000 mark, while the Nasdaq is back at a 14-year high.
Mergers and Acquisitions
Dollar General (NYSE: DG) stock is up today after the company made a bid for Family Dollar.
This comes three weeks after Dollar Tree's first bid for the discount retailer.
Penny stocks to watch update: Global mergers and acquisitions have been occurring at an astonishing pace in 2014, with more than $2 trillion in transactions announced year to date. And the pace of M&A activity is only expected to continue thanks to low interest rates and companies' flush cash hoards.
Some of the richest takeover premiums resulting in big stocks gains can come from penny stocks.
Many investors are holding their breath even as they hold out plenty of hope looking at the recently announced deal between Apple and IBM.
The upside, many say, is unlimited because it's such a brilliant move.
In fact, the deal reeks of desperation and unprecedented weakness.
We've seen this playbook before... Full Story
The latest Apple stock news sent AAPL shares up 1.73% this morning (Wednesday).
On Tuesday afternoon, Apple announced a "landmark partnership" with International Business Machines Corp. (NYSE: IBM). Together, the two companies aim to gain foothold in segments of the corporate world like healthcare, retail, and transportation. And they intend to use mobile to do it.
Dow Jones today, June 16, 2014: The Dow Jones Industrial Average posted gains on Friday, despite growing macroeconomic concerns. All eyes this week will focus on the Federal Open Market Committee meeting, which kicks off tomorrow.
The Fed meeting isn't expected to provide any surprises. The central bank will likely maintain low interest rates and will likely continue tapering its bond-purchasing program by another $10 billion to a total of $35 billion each month.
EPL Oil & Gas Inc. (NYSE: EPL) agreed to be bought by main rival Energy XXI Ltd (Nasdaq: EXXI) Wednesday in a $2.3 billion deal billed as creating the biggest publicly owned independent oil producer on the U.S. Gulf of Mexico shelf.
Energy XXI said it expects an enterprise value of about $6 billion after the deal is closed.
The stock market today is off to a sluggish start as investors brace for a week of important economic indicators.
Pending homes sales kicked off a week of tell-tale economic data this morning, while earnings season continues with Wynn Resorts Ltd. (Nasdaq: WYNN) reporting disappointing Q2 results.
In fact, global M&A activity in the first quarter topped $799.8 billion, the most since 2007's pre-crash frenzy, according to a recent report in Forbes magazine.
MergerInvesting.com, which tracks the M&A market, says 130 deals have either already been closed in 2011 or are currently pending. And, while the total number of global deals is down slightly from the same period in 2010, the actual value of the deals is up more than 55% (with deals involving U.S. companies accounting for 49.6% of that total - a 117% jump from 2010).
Looking forward, most M&A analysts now predict more than $3 trillion in takeover activity for all of 2011.
Cash rich companies and greater confidence in the overall economy are two big reasons for the turnaround. But international, cross-border deals have offered another catalyst for the spectacular growth.
Total M&A deal volume was up 62% to $377 billion as of February 14, according to Thomson Reuters data. That's the highest level since 2007, and it's still on the rise.
Indeed, global M&A activity in 2011 is expected to total more than $3 trillion this year, compared to $2.8 trillion in 2010.
While the $9.53 billion all-stock deal creates the world's largest trader of equities, it's the chance to exp and the combined entity's presence in derivatives markets that held the real appeal, according to most observers.
Under the terms of the deal, Deutsche Boerse shareholders will control 60% of the new company, with NYSE shareholders owning 40%. One Deutsche Boerse share will be exchanged for one share of the new company's stock, while each share of NYSE Euronext will be swapped for 0.47 share of new company stock, The Wall Street Journal reported.