Stocks Open Higher on Positive US Economic Data
The US stock market opened higher on Friday, boosted by a string of positive economic data releases. The Dow Jones Industrial Average and the S&P 500 rose 0.7% and 0.8%, respectively, while the Nasdaq edged up 0.9%. Meanwhile, corporate news saw United Rentals agreeing to buy RSC Holdings for $1.9 billion, and Darden Restaurants reporting a 41% decline in earnings despite beating analyst expectations.
Key Takeaways:
- United Rentals agreed to buy RSC Holdings for $1.9 billion, representing a 58% premium to RSC's closing price.
- Darden Restaurants earned $54.1 million, or 41 cents a share, in the second quarter, despite a 41% decline from the same period last year.
- Research In Motion beat analyst expectations for its fiscal third-quarter earnings but offered a disappointing outlook.
- Adobe Systems reported above-consensus results for its fiscal fourth quarter, with non-GAAP profit of $332.6 million, or 67 cents a share.
- Zynga's initial public offering of 100 million shares was priced at $10 a share, valuing the company at $7 billion.
Statistics:
- Dow Jones Industrial Average: 11,951 (up 82.5 points, or 0.7%)
- S&P 500: 1226 (up 9.9 points, or 0.8%)
- Nasdaq: 2564 (up 21.4 points, or 0.9%)
- United Rentals: $18 per share (58% premium to RSC's closing price)
- Darden Restaurants: $54.1 million (41 cents a share) in earnings
- Research In Motion: $1.27 per share (adjusted earnings) on revenue of $5.3 billion
- Adobe Systems: $332.6 million (non-GAAP profit) on revenue of $1.15 billion
- Zynga: $7 billion (market value) at $10 per share
Sources:
- TheStreet (http://www.thestreet.com)
- United Rentals (URI)
- RSC Holdings (RRR)
- Darden Restaurants (DRI)
- Research In Motion (RIMM)
- Adobe Systems (ADBE)
- Zynga (ZNGA)