Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

The Legend of Turnaround Tuesday Continues

By

Today's financial recap and tomorrow's financial outlook.

PrintPRINT
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.

Dell (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.

Virgin Media (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 (NWSA), Atmel (ATML), Green Mountain Coffee Roasters (GMCR), Allstate (ALL), Prudential Financial (PRU), Visa (V), and Yelp (YELP) will report.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE