Stocks move higher on earnings, acquisition news - KAUZ-TV: Newschannel 6 Now | Wichita Falls, TX

Stocks move higher on earnings, acquisition news

Posted: Updated:
  • NationalMore>>

  • Peace talks eyed after Israel, Hamas cease-fire

    Peace talks eyed after Israel, Hamas cease-fire

    Tuesday, July 22 2014 11:23 AM EDT2014-07-22 15:23:36 GMT
    The U.S. and Egypt sought Tuesday to find an end to two weeks of bloodshed in the Gaza Strip, and officials raised the possibility of restarting stalled peace talks between Israel and Palestinian authorities as a...
    The U.S. and Egypt sought Tuesday to find an end to two weeks of bloodshed in the Gaza Strip, and officials raised the possibility of restarting stalled peace talks between Israel and Palestinian authorities as a necessary...
  • American Jews, other 'lone soldiers' serve Israel

    American Jews, other 'lone soldiers' serve Israel

    Tuesday, July 22 2014 11:07 AM EDT2014-07-22 15:07:36 GMT
    By JULIE WATSON Associated Press The two Americans killed in fighting in the Gaza Strip followed in the footsteps of scores of Jews from around the world who have volunteered to fight for Israel.
    By JULIE WATSON Associated Press The two Americans killed in fighting in the Gaza Strip followed in the footsteps of scores of Jews from around the world who have volunteered to fight for Israel.
  • Man accused of enslaving woman to be sentenced

    Man accused of enslaving woman to be sentenced

    Tuesday, July 22 2014 11:07 AM EDT2014-07-22 15:07:01 GMT
    A man accused of enslaving a mentally disabled woman in northeast Ohio is set to be sentenced in federal court in Youngstown.
    A man convicted of enslaving a mentally disabled woman in northeast Ohio could receive life in prison when he's sentenced Tuesday in federal court in Youngstown.
By ALEX VEIGA
AP Business Writer

Stocks shook off last week's doldrums and finished sharply higher Monday, driven by a round of corporate deal news and strong earnings from Citigroup.

Investors cheered AECOM Technology's $4 billion acquisition of engineering and construction services company URS Corp., sending URS' stock up 11.6 percent and AECOM 8.6 percent.

Citigroup rose 3 percent after the bank turned in better-than-expected results and disclosed it has agreed to pay $7 billion to settle a federal probe into its mortgage securities business. JPMorgan Chase & Co. and Goldman Sachs, due to report earnings Tuesday, also got a lift.

All told, the three major stock indexes notched their second gain in two days. That's a turnaround from last week, when the Standard & Poor's 500 index lost 0.9 percent, its worst showing since April.

Concern about Portugal's Espirito Santo International, which reportedly missed a debt payment last week, harked back to issues that spawned Europe's debt crisis.

On Monday, investors appeared to be reassured any problems would be contained.

"Investors are saying if this Portugal thing really isn't significant from an impact standpoint, and the earnings are coming in good ... stocks ought to be going higher," said Phil Orlando, chief equity strategist at Federated Investments.

The major indexes rose in premarket trading as investors digested Citigroup's earnings. They opened in the green and held steady through the entire session.

The Standard & Poor's 500 index rose 9.53 points, or 0.5 percent, to 1,977.10. The index is down 0.4 percent from its most recent all-time high of 1,985.44 set July 3.

Nine of the 10 sectors in the S&P 500 rose, led by energy stocks. Utilities fell the most.

The Dow Jones industrial average added 111.61 points, or 0.7 percent, to 17,055.42. The Dow is down slightly from its July 3 record of 17,068.65.

The Nasdaq composite gained 24.93 points, or 0.6 percent, to 4,440.42.

The three stock indexes are all up for the year.

The yield on the 10-year Treasury note rose to 2.54 percent from 2.52 percent late Friday.

With the market trading near all-time highs, investors will be focused this week on a large number of corporate earnings, including quarterly reports from General Electric, Google, Bank of America and Johnson & Johnson.

So far investors like what they see.

"We got started off with a very good report out of Citibank this morning," Orlando said. "And economic news this week - retail sales, capacity utilization, housing data, confidence data - is all supposed to be pretty good."

Citigroup rose $1.42, or 3 percent, to $48.42.

Several other big investment banks also rose. Morgan Stanley added 40 cents, or 1.3 percent, to $31.81, while Goldman Sachs rose $2.20, or 1.3 percent, to $167. JPMorgan Chase climbed 49 cents, or 0.9 percent, to $56.29.

Recent data point to an improving U.S. economy after a slow start this year.

Employers added 288,000 jobs last month, the fifth straight month of gains above 200,000. And the national unemployment rate slid to 6.1 percent, a 5 1/2-year low.

More people with jobs means more paychecks, which could boost consumer spending and growth.

"You're starting to stack up some fairly impressive jobs numbers," said Liz Ann Sonders, chief investment strategist at Charles Schwab & Co. "There's a lot of momentum to this market."

That momentum is helping drive corporate deals. On Monday, generic drugmaker Mylan said it agreed to buy Abbott Laboratories' generic-drug business in developed markets for $5.3 billion. Mylan's stock added $1.04, or 2.1 percent, to $51.24, while shares of Abbott gained 52 cents, or 1.3 percent, to $41.82.

Meanwhile, Kindred Healthcare said it would pay $16 per share to buy up to a 14.9 percent stake in Gentiva Health Services. That's just short of the 15 percent limit imposed by a shareholder rights plan that Gentiva's board adopted earlier this year. Kindred climbed 36 cents, or 1.5 percent, to $24.74, while Gentiva gained 39 cents, or 2.5 percent, to $16.21.

In other deal news, Kodiak Oil & Gas agreed to sell itself to Whiting Petroleum in an all-stock deal. Kodiak rose 68 cents, or 4.8 percent, to $14.91. Whiting jumped $6.04, or 7.7 percent, to $84.58.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • InternationalMore>>

  • EU imposes new sanctions against Russian officials

    EU imposes new sanctions against Russian officials

    Tuesday, July 22 2014 11:30 AM EDT2014-07-22 15:30:08 GMT
    A train bearing the bodies of the people who died in the Malaysia Airlines crash arrived in the eastern Ukrainian city of Kharkiv on Wednesday on their way to the Netherlands.
    The European Union agreed Tuesday to impose new sanctions against officials deemed responsible for Russia's actions in Ukraine, amid mounting international anger after a Malaysia Airlines plane was shot down over...
  • Obama sends top aides to Germany amid spying cases

    Obama sends top aides to Germany amid spying cases

    Tuesday, July 22 2014 11:30 AM EDT2014-07-22 15:30:02 GMT
    President Barack Obama has dispatched two senior advisers to Germany in an apparent effort to soothe tensions following new allegations of American spying.
    President Barack Obama has dispatched two senior advisers to Germany in an apparent effort to soothe tensions following new allegations of American spying.
  • Peace talks eyed after Israel, Hamas cease-fire

    Peace talks eyed after Israel, Hamas cease-fire

    Tuesday, July 22 2014 11:23 AM EDT2014-07-22 15:23:36 GMT
    The U.S. and Egypt sought Tuesday to find an end to two weeks of bloodshed in the Gaza Strip, and officials raised the possibility of restarting stalled peace talks between Israel and Palestinian authorities as a...
    The U.S. and Egypt sought Tuesday to find an end to two weeks of bloodshed in the Gaza Strip, and officials raised the possibility of restarting stalled peace talks between Israel and Palestinian authorities as a necessary...