TribLIVE

| Business

 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Mergers, homes, phones give markets a huge lift

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

'American Coyotes' Series

Traveling by Jeep, boat and foot, Tribune-Review investigative reporter Carl Prine and photojournalist Justin Merriman covered nearly 2,000 miles over two months along the border with Mexico to report on coyotes — the human traffickers who bring illegal immigrants into the United States. Most are Americans working for money and/or drugs. This series reports how their operations have a major impact on life for residents and the environment along the border — and beyond.

By The Associated Press
Tuesday, Sept. 10, 2013, 12:01 a.m.
 

The stock market got a boost on Monday from mergers, homes, and phones.

Stocks posted their biggest gains in almost two months. Two big deals suggested growing confidence in the economy: Luxury retailer Neiman Marcus was sold for $6 billion, and Koch Industries bought electronics component maker Molex for $7.2 billion.

Homebuilding stocks were some of the biggest gainers in the Standard & Poor's 500 index after Hovnavian Enterprises said home prices are rising and its backlog jumped almost 27 percent from a year earlier.

Hovnanian rose 11 cents to close at $5.15. PulteGroup, D.R. Horton and Lennar gained. Homebuilder MDC Holdings rose $1.72 to $29.37 after an upgrade from a Citi analyst.

Homebuilding stocks have had a volatile year. Investors have been bullish because the housing market is recovering but worried that rising interest rates make mortgages more expensive for home buyers.

The Dow Jones industrial average rose 140.62 points to 15,063.12. The Dow hit a high of 15,658 on Aug. 2. But worries about Syria and rising interest rates pushed stocks down since then. The last time the Dow closed above 15,000 was Aug. 23.

The S&P 500 index rose 16.54 points to 1,671.71. The Nasdaq composite rose 46.17 points to 3,706.18. Both the Dow and the S&P 500 had their biggest daily gains since July 11.

Two things about the Koch-Molex deal grabbed investors' attention: Its components show up in a wide variety of products, including housing and autos, so Koch's interest suggests that it sees broad economic improvement. Koch is paying $38.50 per share, 31 percent over Molex's stock price on Friday. Molex soared $9.29, or almost 32 percent, to $38.63.

“I think it's really exciting for just about everybody to see that big of a deal go through,” said Kim Forrest, senior analyst with portfolio management firm Fort Pitt Capital Group in Pittsburgh.

Apple gained 1.6 percent to $506.17 in advance of an expected iPhone announcement on Tuesday.

Delta Air Lines jumped $1.87 to $21.76 after news that it would be added to the S&P 500 index.

Stocks in Asia rose lifted by Tokyo's win for the 2020 Summer Olympics, Chinese export growth and an election victory by Australia's conservative coalition. The positive news out of the Asia-Pacific region helped outweigh worries about rising interest rates and Syria, Doug Cote, chief market strategist at ING U.S. Investment Management, said.

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Business Headlines

  1. Shell shovels millions into proposed Beaver County plant site
  2. Muni bond funds stressed
  3. Off-duty but on call: Suits seek overtime
  4. Extended oil slump takes toll
  5. Small business hangs on fate of Export-Import Bank
  6. When it comes to home ownership, Hispanics finding locked doors
  7. $2-per-gallon gas expected by year’s end, but not in Western Pa.
  8. Of Caitlyn Jenner and workplace restrooms
  9. Companies hand out perks, benefits instead of pay raises
  10. Bond funds hold onto cash
  11. Tech Q&A: Why you should test your router