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Not Enough Spark From ‘Merger Monday’ — Monday’s IP Market Recap

Wall Street sees three big deals, but markets end flat

   
Not Enough Spark From ‘Merger Monday’ — Monday’s IP Market Recap

IPMarketRecap Not Enough Spark From 'Merger Monday'    Monday's IP Market RecapGood news on the homefront this week was led by the return of “Merger Monday,” as the day saw a number of big deals go down.

Leucadia National (NYSE:LUK) bought investment bank and brokerage firm Jefferies Group (NYSE:JEF) in a deal valued at $3.7 billion. Paint titan Sherwin-Williams (NYSE:SHW) announced a $2.3 billion deal to buy Comex Group, a coatings maker based in Mexico. And lastly, Precision Castparts (NYSE:PCP) announced a $2.9 billion deal for Titanium Metals (NYSE:TIE).

Still, despite the excitability in the M&A market, stocks otherwise maneuvered through Monday nervously, dipping back and forth in a narrow range before ending on a mixed note. The Dow Jones and Nasdaq finished down fractionally at 12,815.16 and 2,904.26, respectively, while the S&P eked out a marginal gain to close at 1,380 on the nose.

The “Fiscal Cliff” and its automatic across-the-board cuts in spending and the expiration of prior tax cuts continues to take center stage. Newly re-elected President Obama is scheduled to meet with Democratic and Republican leaders during the week, with the result of those meetings closely watched for any sign of movement toward a resolution.

European troubles continue to form a backdrop, too, with finance ministers from the 17 eurozone countries meeting in Brussels to discuss Greece’s economic reforms. Greece took a big step forward as its parliament approved a fiscal 2013 budget — a step toward unfreezing bailout funds.

Decent news in the homebuilder space didn’t help stock prices, as both DR Horton (NYSE:DHI) and Beazer Homes (NYSE:BZH) posted mixed results that had investors fleeing the sector. BZH was clubbed by 18% and DHI finished down nearly 7%. Heading lower with them were Hovnanian (NYSE:HOV, -8.1%) and KB Home (NYSE:KBH, -6.5%), among others.

In corporate news, shares of Gilead Sciences (NASDAQ:GILD) surged almost 14% after the biotechnology giant announced some optimistic news about hepatitis C drug trials, while Research In Motion (NASDAQ:RIMM) shares headed 3% higher after the company announced it will launch its BlackBerry 10 on Jan. 30.

On the negative side, JCPenney (NYSE:JCP) shares continue to sink, down 13% and falling to a new 52-week low after the stock was downgraded by Credit Suisse (NYSE:CS). The struggling retailer was the worst performer on the S&P 500 for Monday.

Three Up

  • Vringo (AMEX:VRNG): Up 7.7% (26 cents) to $3.66.
  • Dendreon (NASDAQ:DNDN): Up 6.4% (26 cents) to $4.31.
  • Vivus (NASDAQ:VVUS): Up 4.8% (52 cents) to $11.36.

Three Down

  • James River Coal (NASDAQ:JRCC): Down 11.5% (31 cents) to $2.39.
  • NuStar (NYSE:NS): Down 7.1% ($3.01) to $39.13.
  • Molycorp (NYSE:MCP): Down 4.4% (33 cents) to $7.17.

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2012/11/not-enough-spark-from-merger-monday-mondays-ip-market-recap/.

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