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Minyanville's Market Recap: Stocks Advance On Tech M&A, Retail, and PPI

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Stocks advanced as inflation concerns eased and M&A in tech boosted sentiment.

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Stocks advanced on positive economic data and m&a activity. The Dow added +0.56% to 14,093, the S&P 500 added +0.48% to 1,561, and the Nasdaq Composite finished up +1.21% to 2,805.

The morning started with major M&A news. Oracle (ORCL) announced it offered $6.6 billion for business-management software maker BEA Systems (BEAS). The all-cash offer of $17 per share represented a 25% premium to BEAS' previous closing price. BEA, however, stated the offer "significantly" undervalued the company. The news sent BEAS soaring. BEAS closed up +37% to $18.82. Professor Udall noted the M&A theme in tech "is just getting started and we have seen minimal private equity participation thus far…much of the activity has been in the software space. This effect will spread into other areas of Tech land." Read Professor Macke's column Oracle Gets Icahnic, Bids For BEA Systems...

In earnings news, General Electric (GE) reported third quarter earnings of $0.50 earnings per share in-line with consensus estimates. Revenues rose 12.3% year-over-year to $42.53 billion versus $42.44 billion consensus. The company issued in-line guidance for the fourth quarter seeing earnings per share in the range of $0.67-0.69 versus $0.68 consensus. GE shares, however, ended down on the day losing -1.3% to close at $41.03 Read Professor Tatro's article from September, Global Rotation: Seeing The Big Picture In GE, Intel (INTC), Banks…

In economic data released today, retail sales grew more than expected by 0.6% in September versus 0.2% consensus. The Producer Price Index came in at 1.1% versus 0.5% consensus. Inflation concerns were slightly eased, nonetheless, as prices minus food and energy gained less than expected. Read Professor Depew's daily column Five Things You Need To Know for more on PPI and Retail Sales.

In commodities action, crude oil hit new highs before settling in +0.61 to 83.69. Metals were slightly weaker. Gold fell -1.60 to 755.10, silver fell -0.8 to 13.90, and copper fell -1.25 to 365.65.

For more summaries of today, check out Minyanville's Buzz Bits and Professor Tuttle's Winners & Sinners.

Here's a preview for Monday's trading session. Click here for the full trading radar.

Economics

8:30 NY Empire State Index: 14.0 cons

Earnings

Before: SCHW, C, ETN, MAT, EDU, JNC, GWW

After: ADTN, BMI, DNA, JBHT, RBN, SONC, STLY

Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.

Some bullish trade or investment ideas: HRP, ATVI, BEAS, NILE, CIEN, DFS, NMX, SNDK

Some bearish trade or investment ideas: HGX, CWTR, SPX, BIDU, COGN, CTXS, VMW, BCSI

Join us for a drink at happy hour! Hope y'all had a great day and have a great weekend!
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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.

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