Today US markets totally erased yesterday's losses and the S&P 500 nudged up to new highs yet again. Yesterday's 1% downturn was met with incessant buying and the Dow Jones Industrial Average again nudged above 14,000. Tech and consumer staples stocks led the way.
US economic data was light with just the ISM non-manufacturing composite index being released. In January, the index declined slightly to 55.2 from 55.7 in December, more or less inline with expectations. The new orders subindex declined slightly while the employment subindex rose slightly on a month-to-month basis.
(NASDAQ:DELL) finalized its LBO deal to take the company private today at a price of $13.65 per share, or $24.4 billion. The deal includes a $2 billion loan from Microsoft
(NASDAQ:MSFT), financing from Silver Lake Partners, and self-financing from Michael Dell, the owner of the company. The shares traded up slightly to a closing price of $13.40.
Overnight, the Reserve Bank of Australia chose to keep its benchmark cash rate unchanged at 3%, inline with economist expectations. However, the central bank's comments were more downbeat on forward growth and a reduction in unemployment for Australia, signaling that another rate cut could be on the horizon.
(NASDAQ:VMED) is said to be in talks to be acquired by Liberty Global
(NASDAQ:LBTYA) as the US company seeks to gain access to European markets. Late in the day, CNBC reported that a deal was close to being struck at below $50 per share, a more than 20% premium over yesterday's closing price. Virgin Media will report earnings tomorrow morning.
Tomorrow's Financial Outlook
Tomorrow the slate for US economic data is completely empty. The Mortgage Brokers Association will report its weekly mortgage and refinance data in the morning. Last week, the mortgage purchase and refinance indexes declined into month end and should bounce back this week.
Globally, German factory orders and Australian retail sales will be released. Recently, German economic data has been softer than expected as the German DAX makes new multi-year highs alongside US stocks.
In earnings, Virgin Media
(VMED), Marathon Oil
(MRO), CVS Caremark
(CVS), Time Warner
(TWX), Nu Skin
(NUS), Ralph Lauren
(RL), News Corp
(ATML), Green Mountain Coffee Roasters
(ALL), Prudential Financial
(V), and Yelp
(YELP) will report.
No positions in stocks mentioned.
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