12:45PM New York – U.S. stocks surged ahead on better than expected earnings and the largest deal in the coal mining industry worth $14 billion.
U.S. stocks rose in the morning trading after better than expected earnings from U.S. Steel Corp, McGraw Hill and Hartford Financial Services. Canada based Teck Cominco offered $82 a share and 0.25 of its share for each unit of metallurgical coal miner Fording Coal Trust.
Fording Canadian Coal Trust (FDG
) surged $6.21 to $88.72 after it agreed to sell to Teck Cominco for $82 in cash and 0.245 Teck Class B subordinate voting share for one unit of Fording.
The deal values the company at $92 per share or $14 billion and at 18% premium to 20-day volume weighted average price of $77.95 per share based on the New York Stock Exchange trading.
Dow Jones Industrial Average gained 176.68 or 1.4% to 11,312.40 and S&P 500 rose 50.00 or 0.77% to 2,312.62.
XL Capital Limited the insurer based in Bermuda may have to raise capital and rating agencies may lower its debt rating as it faces claims worth $1.78 billion for Security Capital Assurance Limited. XL stock fell 6.4% to $17.19.
XL Capital Limited (XL
) in the last one year traded as high as $82.10 in October 2007 and as low as $14.61 in July 2008. Based on the yesterday’s closing price the company has a market cap of $3.00 billion.
SAP AG rose 7% to $57.49 after the world’s largest business-management software developer raised its revenue and margin guidance. Moreover the second quarter license sales beat the forecasts given by analysts.
SAP AG (SAP
) in the last one year traded as high as $59.86 in October 2007 and as low as $43.00 in January 2008. Based on the yesterday’s closing price the company has a market cap of $69.10 billion.
Zoran Corporation dropped 16.5% or $1.58 to $8.00 after the maker of integrated chip design software developer forecasted third quarter profit of 4 cents a share lower than the average analyst estimate of 28 cents.
Zoran Corporation (ZRAN
) in the last one year traded as high as $27.45 in October 2007 and as low as $8.10 in July 2008. Based on the yesterday’s closing price the company has a market cap of $432.23 million.
Of the stocks in S&P 500 index, 396 increased 97 declined and 7 remained unchanged.
XL Capital Limited led the decliners in the S&P 500 index with a loss of 9.15% or $1.68 to $16.69 followed by losses in Merrill Lynch of 6.95% or $1.69 to $22.64, in America International Group of 4.34% or $1.04 to $22.92, in Southwestern Energy of 4.00% or $1.35 to $32.42 and in Citigroup Incorporated of 3.56% or $0.62 to $16.81.
AK Steel Holdings led gainers in the S&P 500 index with a rise of 13.61% or $6.85, to $57.17 followed by increases in U.S. Steel Corporation of 11.35% or $16.50 to $161.83, in MBIA Incorporated of 6.56% or $0.28 to $4.55, in Colgate-Palmolive of 6.23% or $4.27 to $72.83 and in Plum Creek Timber of 5.34% or $2.38 to $46.97.
Dow Gainers & Losers
Of the 30 stocks in Dow Jones Industrial Average 25 stocks gained and 5 declined.
America International Group led the decliners in the Dow Jones Industrial Average with a loss of 4.59% or $1.10 to $22.86 followed by losses in Citigroup Incorporated of 3.50% or $0.61 to $16.82, in JPMorgan Chase of 0.56% or $0.21 to $37.45, in Merck and Company of 0.47% or $0.15 to $31.91, and in Exxon Mobil Corporation of 0.05% or $0.04 to $80.64.
Caterpillar Incorporated led the gainers in the Dow Jones Industrial Average index with a rise of 2.07% or $1.43 to $70.62 followed by increases in General Motors of 1.73% or $0.19 to $11.19, in Home Depot Incorporated of 1.55% or $0.36 to $23.52, in McDonalds Corporation of 1.45% or $0.84 to $58.63 and in Verizon Communication of 1.22% or $0.41 to $34.01.
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