Roundup: U.S. stocks rebound on economic data, Dell buyout
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E-mail Xinhua, February 6, 2013
U.S. stocks bounced back Tuesday, buoyed by uplifting economic data and news of Dell's privatization, after posting the biggest one-day drop since last November in the previous trading day.
The Dow Jones Industrial Average rallied 99.22 points, or 0.71 percent, to 13,979.30. The Standard & Poor's 500-stock Index went up 15.58 points, or 1.04 percent, to 1,511.29. The Nasdaq Composite index jumped 40.41 points, or 1.29 percent, to 3,171.58.
The U.S. service sector continued to expand but at a slower pace in January. The Institute for Supply Management's non-manufacturing index in January slipped to 55.2 from 56.1 in the previous month.
In Europe, figures released in the day indicated the eurozone was healing from its crisis. The eurozone composite purchasing managers index rose to a 10-month high of 48.6 in January, below the 50 mark that divides growth and contraction, according to Markit.
Dell, the world's third largest personal computer vendor, signed a privatization deal worth 24.4 billion dollars with its founder and Chief Executive Officer Michael Dell and private equity firm Silver Lake. Dell's shares advanced 1.13 percent to 13.42 dollars a share on Tuesday.
With the U.S. government's automatic spending cuts looming large, concerns about the "fiscal cliff" came back to weigh on the market.
President Barack Obama on Tuesday urged the Congress to pass a small package of spending cuts and tax reforms to put off the automatic across-the-board cuts, known as the sequester, due to take effect on March 1.
Earlier in the day, House Speaker John Boehner urged Obama to offer plans to replace the looming sequester, which would slash about 85 billion U.S. dollars from government spending, including defense and non-defense discretionary spending, and leave a huge impact on the fragile economic recovery.
On individual companies, shares of NYSE Euronext, the world's leading exchange operator, moved up 1 percent to 35.22 dollars after the owner of the New York Stock Exchange reported a net income of 28 million dollars for the fourth quarter of 2012, compared to 110 million dollars for the same period of 2011.
Shares of Walt Disney gained over 1 percent in the after-hour trading as the company reported quarterly earnings that beat market expectations after the closing bell.
Shares of McGraw-Hill extended losses, dropping 10.7 percent to 44.92 dollars a share, as the Standard & Poor's Ratings Services, a McGraw-Hill unit, faced a civil lawsuit filed by the Department of Justice for inflating ratings and understating risks during the financial crisis in 2008, a tactic alleged to be used to gain more business from investment banks.
On other markets, crude prices rose Tuesday after correction on the day before, boosted by positive data from Europe and increasing demand outlook from the United States.
Light, sweet crude for March delivery gained 47 cents, or 0.49 percent, to settle at 96.64 dollars a barrel on the New York Mercantile Exchange.
Brent crude for March delivery climbed 92 cents, or 0.80 percent, to close at 116.52 dollars a barrel, with its premium to U.S. crude increased to 19.88 dollars.
The U.S. dollar slipped against the euro on the improving non-manufacturing data in the eurozone.
The European Central Bank are expected to keep interest rate on hold at its policy meeting on Feb. 7 despite concerns from European leaders that a strong euro may hurt exports and deepen the recession.
In late New York trading, the euro rose to 1.3586 dollars from 1.3519 dollars of the previous session and the British pound slipped to 1.5683 from 1.5764 dollars.
The dollar dipped to 0.9081 Swiss francs from 0.9083 and went down to 0.9950 Canadian dollars from 0.9980. The dollar bought 93.37 Japanese yen, higher than 92.42 in the previous session. Endi
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