Wall Street Stocks Rise on Merger Deals and Management Changes

Strategic Insights -

Investors cheered a new wave of merger deals and management changes on Wall Street on Monday, leading to a slight increase in stock prices. The Dow Jones industrial average rose 30.15 points, or 0.28 percent, to 10,804.51 points, while the Nasdaq composite index added 9.44 points, or 0.46 percent, to 2,051.04 points. Despite inflation fears that sent stocks falling last week, investors' optimism was lifted by announcements of management changes at The Walt Disney Co. and American International Group Inc., as well as planned acquisitions by Altria Group Inc. and IBM Corp.

Key Takeaways:

  • The Dow Jones industrial average rose 30.15 points, or 0.28 percent, to 10,804.51 points on Monday.
  • The Nasdaq composite index added 9.44 points, or 0.46 percent, to 2,051.04 points on Monday.
  • The Walt Disney Co. shares gained 43 cents to 28.02 dollars after the company announced that Robert Iger would take over as CEO on October 1.
  • American International Group Inc. shares fell 86 cents to 63.85 dollars after a media report said Maurice "Hank" Greenberg would resign as CEO.
  • IBM Corp. shares rose 39 cents to 91.90 dollars after announcing a plan to acquire Ascential Software Corp. for 1.1 billion dollars.
  • Altria Group Inc. shares added 3 cents to 69.17 dollars after announcing a 5.2 billion-dollar bid for an Indonesian tobacco company.
  • J.C. Penney Co. Inc. shares jumped 87 cents to 48.88 dollars and Gottschalks Inc. added 1.20 dollars to 10.08 dollars after an analyst speculated that J.C. Penney would buy Gottschalks.

Statistics:

  • 1.78 billion shares were traded on the NYSE.
  • The Dow Jones industrial average increased by 30.15 points.
  • The Nasdaq composite index increased by 9.44 points.
  • The Walt Disney Co. shares gained 43 cents.
  • American International Group Inc. shares fell 86 cents.
  • IBM Corp. shares rose 39 cents.
  • Altria Group Inc. shares added 3 cents.
  • J.C. Penney Co. Inc. shares jumped 87 cents.
  • Trading volume was 1.78 billion shares.

Sources:

  • Xinhua (Xinhua via COMTEX)
  • COMTEX (http://www.comtexnews.com)