Merger mania hit new heights on Wednesday.
surprised with a $66 billion offer to acquire Dow component Disney
Second, it turns out PeopleSoft
was right: the Justice Department has big problems with Oracle’s
And last but not least, Eastman Kodak
, another Dow component, was rumored to be weighing a bid for SanDisk
The year-long stock market rally has raised stock valuations to the level that some companies just can’t resist spending that extra equity on acquisitions, witness Juniper’s
blockbuster merger with NetScreen
two days ago.
The broader market surged on an upbeat assessment of the economy and interest rates from Fed Chairman Alan Greenspan.
The Nasdaq gained 14 to 2089, the S&P 500 rose 12 to 1157, and the Dow surged 123 to 10,737. Volume rose to 1.7 billion shares on the NYSE, and 2.2 billion on the Nasdaq. Advancers led 23-9 on the NYSE, and 19-12 on the Nasdaq. Upside volume was 79% on the NYSE, and 63% on the Nasdaq. New highs-new lows were 448-6 on the NYSE, and 266-2 on the Nasdaq.
After the close, Sonus
revealed accounting problems. Brocade
beat estimates, and Computer Sciences
During the day, Priceline
surged on better than expected earnings.
soared 33% on its earnings report, and Micromuse
gained 18% on its results.
lost 6% after missing estimates, and Monster Worldwide
fell 5% on a warning.
gained 4% on the return of co-founder Andy Bechtolsheim.
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