US Stocks Rebound as Dell Goes Private in $24.4B Deal (DELL, YUM)

The major US indices ended higher on Tuesday and rebounded from yesterday’s losses. Dell Inc. (DELL) sparked much of this upward movement after agreeing to their buyout valued at $24.4 billion that will take the company private. Zynga (ZNGA) also rose today after being upgraded from “underperform” to “buy” and reporting their most recent earnings results. After receiving negative publicity in China, Yum Brands Inc. (YUM) dropped 2.6%. Talks of several deals are currently underway including Virgin Media Inc.’s (VMED) possible transaction with Liberty Global (LBTYA), and negotiations involving Pinterest’s new financing deal. It was reported that of the 56% of companies that have shared their Q4 earnings so far, about 69% have beaten investor estimates. In economic news, the ISM index reportedly fell to 55.2% in January from 55.7% in December. US home prices rose 0.4% in December, the best climb since May of 2006. The dollar slipped against the euro while it made slight gains against the Japanese yen.

Word on the Street

• US home prices jump the most in December since May 2006 on low supply and rising demand.
• Toyota Motor (TM) raises profit outlook for its fiscal year ending March 31 and reports strong profit.
• Companies in the US service sector expand slower in January; ISM index falls to 55.2%.
• Dell (DELL) will go private for $24.4 billion in the biggest leveraged buyout since the financial crisis.
• European stocks rebound from Monday’s session on euro zone and US economic data.
• Kellog Co (K) forecasts better earnings for 2013 than originally expected by analysts.
• BP (BP) to face $34 billion in damage claims by Gulf states related to the 2010 explosion.
• Quarterly profit Soars for Archer Daniels Midland Co (ADM) on Tuesday.

Interesting Tidbits

• Susan Bratton of Meals to Heal on overcoming her fears and starting her own company.
• A look at the results of advertisements that ran during this year’s Super Bowl.