Berkshire for BNI

Berkshire Hathaway (BRK.A, BRK.B) will acquire Burlington Northern Santa Fe Corporation (BNI) for the remaining 77.4% of outstanding shares the company doesn’t already own.

The negotiated price is for $100 a share, making it a premium of over 30% to yesterday’s closing price and valuing the transaction at more than $44 billion.

Berkshire Chairman and CEO Warren Buffet said in a statement, “Our country’s future prosperity depends on its having an efficient and well-maintained rail system. Conversely, America must grow and prosper for railroads to do well.”

As BNI is a key member of the Transports, see Minyan Jeff Saut’s piece yesterday, Why a Dow Theory Sell Signal Never Happened.

From the Bull Pen: We talked about the Transports yesterday identifying $64 support on the IYT ETF. Is this the news to rescue it from the brink of death? Also consider FedEX (FDX) filling the gap at $72. A sell stop can be set below that level.

From the Bear Cave: Bears can look elsewhere like retailer Ross Stores (ROST). Taking a technical look, previous support at $45 is now resistance. For those playing the downside, consider setting a buy stop above that level.

A Quick Check Around the World

Asian trading closed with the Nikkei (Closed), India -3.09%, Hang Seng -1.76%, Shanghai 1.22%, and Taiwan -0.17%.

Across the pond, we see the FTSE -2.19%, CAC -2.19%, DAX -1.79%

As of 8:10 a.m. EST, S&P Futures are trading -6.00 to 1033.00 and Nasdaq futures are -8.500 to 1660.50.

A Look at Commodities

Over in commodities, crude oil is -0.50 to 77.61 while gold is +8.50 to 1062.50 this morning. Silver is +0.01 to 16.450 and copper -0.025 to 2.92.

The dollar Index is +0.4000 to 76.6900.

On the Radar

Economics

10:00 Factory Orders 1.0% cons.

Click here for the full trading radar.

Welcome back! Good luck!