Tower Bancorp Leads S&P Gainers After Buyout Deal

by Jonathan Yates | June 21, 2011 12:07 pm

In early trading, the Standard and Poor 500 was up about 13.32 at 1291.68, led by financial stock Tower Bancorp (NASDAQ: TOBC[1]), as confidence rose that Greece would not default on its debt and other European countries would be able to positively resolve their debt issues. This is the fourth day in a row that the stock market is posting gains after a long streak of losses.

S&P 500 Winners

Leading the S&P higher was Tower Bancorp (NASDAQ: TOBC[1]), registering a $6.23 gain to $26.99 after Susquehanna Bancshares (NASDAQ: SUSQ[2]) announced it would acquire the bank in a $343 million deal for cash and stock. That’s about a 23% gain for Tower Bancorp stock.

Commercial Metals (NYSE: CMC[3]) also rose early, up 6% to $14.59 after reporting higher than expected earnings (31 cents a share vs. a 20 cent estimate, with total revenues of $2.1 billion vs. a $2.07 billion estimate).

Gapping up strongly to open higher by almost 6%, KB Financial Group (NYSE: KB[4]), a financial holding company, is trading $2.54 higher at $47.46.

S&P 500 Losers

American Capital Agency (NASDAQ: AGNC[5]), a mortgage REIT, was lower by about 4% to $28.63, gapping down significantly at the opening bell.

Walgreen Company (NYSE: WAG[6]) fell 5.75% after reporting that negotiations to renew its contract to be part of the Expresss Scripts (NASDAQ: ESRX[7]) pharmacy network were unsuccessful. Walgreens did report a 30% increase in net income, however.

Abington Bancorp (NASDAQ: ABBC[8]) was down over 9%. Abington was recently downgraded by The Street from “Buy” to “Hold” due to unimpresive growth in net income and weak operating cash flow Now at $9.94, Abington Bancorp shares are now rading below book value.

Endnotes:

  1. TOBC: http://studio-5.financialcontent.com/investplace/quote?Symbol=TOBC
  2. SUSQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=SUSQ
  3. CMC: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMC
  4. KB: http://studio-5.financialcontent.com/investplace/quote?Symbol=KB
  5. AGNC: http://studio-5.financialcontent.com/investplace/quote?Symbol=AGNC
  6. WAG: http://studio-5.financialcontent.com/investplace/quote?Symbol=WAG
  7. ESRX: http://studio-5.financialcontent.com/investplace/quote?Symbol=ESRX
  8. ABBC: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABBC

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