Weak Economic Data in Europe and Asia on Monday, Multiple US Corporate Mergers (WLP, AA)
On Monday, stocks were still down due to weak economic data in Asia and Europe, especially from Spain where bond yields rose above 7%. Market indices traded lower ahead of the earnings calendar. Evidence continues to arise on Libor and the role of central bankers with the Bank of England's Paul Tucker testimony. There were several large mergers today as WellPoint (WLP) announced its plan to acquire Americgroup (AGP) for $4.9 billion in cash and Campbell Soup (CPB) agreed to buy Bolthouse Farms for $1.55 billion.Although aluminum prices are down, Alcoa Inc. (AA) reported earnings that were better than Wall Street expected. Today was also the first day of an air show where Boeing (BA) won orders worth $7.2 billion. The dollar inched slightly higher to both the euro and the Japanese yen.
Word on the Street
- Libor probing continues, Paul Tucker of the Bank of England speaks out on Barclays (BCS).
- For $4.9 billion, WellPoint Inc. (WLP) plans to buy Amerigroup Corp (AGP) as the Medicaid market continues to expand.
- Alcoa Inc. (AA) reports better than expected quarterly earnings and revenue.
- Global stocks continue to fall due to disappointing economic data in Europe and Asia.
- Fed announces a $17.1 billion increase in US consumer credit for May, the biggest jump in almost five years.
- Boeing (BA) lands first blow in fierce battle with Airbus to win orders for their latest jets.
- Spanish bond yields rise to unsustainable levels, US stocks falter.
- Barclays' (BCS) Libor-Fixing Scandal Brings Down the House.
Published on Jul 9, 2012By InvestorGuide Staff