Stocks Open Higher Amid Analyst Upgrades and Deal News

Strategic Insights -

Monday's trading session began with a bullish tone as stocks opened higher, driven by analyst upgrades for Intel (INTC) and Alcoa (AA). The removal of concerns over tighter monetary policy, following the Federal Reserve's plans to wind down aggressive liquidity programs, also contributed to the positive sentiment. Additionally, tech shares performed well after a round of mostly upbeat earnings reports.

Key Takeaways:

  • Intel (INTC) received an upgrade to "overweight" from Barclays Capital, citing a solid end-market, upward bias to estimates, and an "intriguing" valuation at 12 times calendar 2010 EPS.
  • Alcoa (AA) saw a rating hike to "overweight" from 'equalweight," amid strong upside momentum.
  • Walgreen Co. (WAG) reported Q1 EPS of $0.49, beating the Thomson Reuters mean analyst estimate of $0.48, and posted 9.5% higher sales of $16.4 billion.
  • Sanofi-aventis (SNY) and Chattem (CHTT) entered into a definitive agreement for the acquisition of 100% of Chattem's outstanding shares for approximately $1.9 billion.
  • Bucyrus International (BUCY) agreed to purchase Terex's (TEX) mining equipment division for $1.3 billion in cash.
  • Athersys (ATHX) partnered with Pfizer (PFE) to develop and commercialize MultiStem, its investigational stem cell therapy, for the treatment of inflammatory bowel disease.

Statistics:

  • Intel (INTC) valuation: 12 times calendar 2010 EPS.
  • Alcoa (AA) rating: "overweight" from 'equalweight'.
  • Walgreen Co. (WAG) Q1 EPS: $0.49.
  • Walgreen Co. (WAG) sales: 9.5% higher at $16.4 billion.
  • Sanofi-aventis (SNY) acquisition price: approximately $1.9 billion.
  • Bucyrus International (BUCY) purchase price: $1.3 billion in cash.
  • Crude oil price: $73.58 per barrel.
  • Gold price: $1,117 per ounce.
  • Dollar index: steady.

Sources:

  • "Stocks open higher after disappointing last week" by MidnightTrader.com
  • "Intel gets upgrade to 'overweight' from Barclays Capital" by MarketWatch
  • "Alcoa rated 'overweight' by Barclays" by unconfirmed reports
  • "Walgreen Co. reports Q1 EPS of $0.49, beats estimate" by Thomson Reuters
  • "Sanofi-aventis to acquire Chattem for $1.9 billion" by Chattem (CHTT)
  • "Bucyrus International to buy Terex's mining equipment division for $1.3 billion" by Bucyrus International (BUCY)
  • "Athersys partners with Pfizer to develop MultiStem therapy" by Athersys (ATHX)