ISDEX rockets to 477.90 with a change of +45.66 (+10.56%) as the overall market breathes a sigh of relief (for now) that inflation may be at bay after all. Supporting evidence comes via the Consumer Price Index which shows May prices in line with April’s.
The CPI is food for the Fed to consider as 1) Federal Reserve chairman Alan Greenspan prepares to talk to the Joint Economic Committee of Congress June 17 and 2) the Fed Open Market Committee plans to have a get-together at the end of June.
Today’s rally wipes out Monday’s massacre. Are we at the bottom? I believe we could be at “a bottom” (vs. “the bottom”) more of a rollercoaster ride until the Fed meets and decides at the end of June.
CBS (NYSE:CBS) agrees to acquire 30% of ThirdAge, a Web firm focused on Baby Boomers. CBS also has options on another 5%. Terms: $54 million of advertising, promotion and other consideration, over a term of seven years on CBS and its other properties, including Infinity Broadcasting (NYSE:INF).
Amazon.com (NASDAQ:AMZN) agrees to acquire 1 million shares of Sotheby’s (NYSE:BID) for $35.44 per share (June 14 close) and also invest $10 million for a 3-year warrant to acquire an additional 1 million shares for $100 per share. More evidence to me that Amazon.com is more than a bookseller and broadening its base dramatically.
CyberCash (NASDAQ:CYCH) announces merchants using its CashRegister payment services grow more than 300% from May 1998 to May 1999. CYCH gain 14% to $12 per share on the news.