Date: Monday 12 Jul 2010
Wall Street rallied as concerns eased over European financial problems and a decline in Chinese demand for copper.
Alcoa also got the results off to a good start, beating analyst expectations with underlying profits of $137m, or 13c per share, in the three months ended 30 June. The aluminium giant made a loss of $312m, or 32m per share, this time last year. The Dow constituent was tipped to report earnings of 12c per share.
Weakening copper demand hit Freeport McMoran and other metals companies have fallen in sympathy – including US Steel and AK Steel.
Across the markets, the Dow Jones rose 18 10,216, while the Nasdaq added 1 at points at 2,198. The S&P 500 was flat at 1,078.
Later in the week, Intel, JP Morgan, Google, Bank of America, Citigroup and General Electric will also update the market on recent trading. Analysts generally anticipated strong figures.
On the M&A front, insurer Aon has offered $4.9bn (£3.3bn) for Hewitt Associates in a deal that will triple the size of its human resources consulting business.
The world’s biggest insurance broker has put together a package of cash and shares that values Hewitt at $50 a share, a 41% premium to Friday’s closing price. Shareholders will get $25.61 in cash and 0.6362 Aon shares for every Hewitt share they own.
Elsewhere, BP said the cost of the clean-up in the Gulf of Mexico now amounts to $3.5bn, up from $3.12bn a week ago. Some brokers estimate the Gulf disaster could cost $70bn. However, bid and asset sale rumours are continuing to lift the firm's shares.
BP shares were one of the best performers. US oil giant Exxon has started to clear the political hurdles ahead of a possible bid for BP, reports yesterday suggested. Another firm, said to be Chevron, has also been told the authorities would give their approval. A successful bid by Exxon for BP would create an oil company worth more than $400bn (£265bn).
BP is also said to be is in exclusive talks to sell up to $12bn of assets to US firm Apache, including a stake in the huge Prudhoe Bay field in Alaska. Apache approached BP with the plan a few weeks ago.
Wal-Mart is expanding its online business and opening more urban stores. UBS has raised its recommendation for data storage technology company SanDisk from neutral to buy.
Hugh Hefner is planning to take Playboy Enterprises private with a $5.50 a share bid.
Forestry owner Weyerhaeuser is paying a $5.6bn special dividend and converting into a real estate investment trust.
Alcoa also got the results off to a good start, beating analyst expectations with underlying profits of $137m, or 13c per share, in the three months ended 30 June. The aluminium giant made a loss of $312m, or 32m per share, this time last year. The Dow constituent was tipped to report earnings of 12c per share.
Weakening copper demand hit Freeport McMoran and other metals companies have fallen in sympathy – including US Steel and AK Steel.
Across the markets, the Dow Jones rose 18 10,216, while the Nasdaq added 1 at points at 2,198. The S&P 500 was flat at 1,078.
Later in the week, Intel, JP Morgan, Google, Bank of America, Citigroup and General Electric will also update the market on recent trading. Analysts generally anticipated strong figures.
On the M&A front, insurer Aon has offered $4.9bn (£3.3bn) for Hewitt Associates in a deal that will triple the size of its human resources consulting business.
The world’s biggest insurance broker has put together a package of cash and shares that values Hewitt at $50 a share, a 41% premium to Friday’s closing price. Shareholders will get $25.61 in cash and 0.6362 Aon shares for every Hewitt share they own.
Elsewhere, BP said the cost of the clean-up in the Gulf of Mexico now amounts to $3.5bn, up from $3.12bn a week ago. Some brokers estimate the Gulf disaster could cost $70bn. However, bid and asset sale rumours are continuing to lift the firm's shares.
BP shares were one of the best performers. US oil giant Exxon has started to clear the political hurdles ahead of a possible bid for BP, reports yesterday suggested. Another firm, said to be Chevron, has also been told the authorities would give their approval. A successful bid by Exxon for BP would create an oil company worth more than $400bn (£265bn).
BP is also said to be is in exclusive talks to sell up to $12bn of assets to US firm Apache, including a stake in the huge Prudhoe Bay field in Alaska. Apache approached BP with the plan a few weeks ago.
Wal-Mart is expanding its online business and opening more urban stores. UBS has raised its recommendation for data storage technology company SanDisk from neutral to buy.Hugh Hefner is planning to take Playboy Enterprises private with a $5.50 a share bid.
Forestry owner Weyerhaeuser is paying a $5.6bn special dividend and converting into a real estate investment trust.
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