Stocks End Holiday Week on a High Note Amid Optimism on Economic Growth

Strategic Insights -

Stocks closed higher on Thursday, amid optimism on economic growth, with investors extending the winning streak to seven days. The holiday-shortened week brought a mix of economic reports, including retail sales data and consumer confidence index. The U.S. Treasury's decision to provide capital to Fannie Mae and Freddie Mac also boosted shares of these companies.

Key Takeaways:

  • Retail sales in the U.S. rose 3.6% for the period from November 1 to Christmas Eve, according to data from MasterCard Advisors unit SpendingPulse.
  • Fannie Mae (FNM) and Freddie Mac (FRE) shares jumped after the U.S. Treasury said it would provide the two companies with as much capital as they needed over the next three years.
  • Compugen (CGEN) announced the discovery and experimental validation of CGEN-671, a new drug target for multiple epithelial tumors, sending its shares higher.
  • Amicus (AMCS) agreed to be acquired by an affiliate of Thoma Bravo, LLC, in a transaction valued at approximately $217 million.
  • First Chester County (FCEC) soars after the company says it will be bought by Tower Bancorp (TOBC) in an all-stock transaction valued at approximately $65 million.
  • Airline stocks remain lower due to the foiled attempt to blow up a U.S. plane on Christmas Day, with United Airlines (UAL), Delta (DAL), and American's AMR Corp. (AMR) down 2.06%, 3.65%, and 3.38%, respectively.

Statistics:

  • Retail sales rose 3.6% for the period from November 1 to Christmas Eve.
  • Fannie Mae (FNM) and Freddie Mac (FRE) will receive as much capital as they need from the U.S. Treasury over the next three years.
  • Compugen (CGEN) valued its new drug target CGEN-671 at approximately $0.61 on March 24, 2009.
  • Amicus (AMCS) will receive $5.35 in cash for each share of common stock under the terms of the agreement.
  • First Chester County (FCEC) will be bought by Tower Bancorp (TOBC) in an all-stock transaction valued at approximately $65 million.

Sources:

  • [SpendingPulse, as reported by Reuters]
  • [MidnightTrader, Inc.]