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Market Update

Stocks on Wall Street Slide, Dole Food in $1.6 Billion Deal

Author: Nichole Harper
Last Update: 10:36 AM ET August 12 2013

10:30 AM New York – U. S. stocks eased and investors looked ahead to the release of U.S. Treasury deficit later in the day and retail sales data tomorrow. BlackBerry formed a special committee to explore strategic alternatives. Dole Food Company agreed to go private for $1.6 billion.

Stocks on Wall Street declined in thin trading and indexes extended losses from last week after mixed economic data from Japan, China and India.

In early trading in New York, the S&P 500 index declined 0.3% and the Nasdaq Composite Index fell 0.2%.

Investors are looking ahead for the release of U.S. Treasury budget for July later in the day. Treasury is expected to show a deficit of at least $95 billion in the month and the data is scheduled to release at 2 p.m. EDT.

On the economic calendar, retail sales are scheduled for release tomorrow and weekly jobless claims, housing starts and inflation and industrial production data are scheduled to release later in the week.

BlackBerry, the maker of popular wireless gadget and one-time tech giant has forned a special committee to examine strategic alternatives including sale of the company or going private.

Dole Food Company agreed to go private in a transaction that valued the company at $13.50 a share or $1.6 billion that included debt.

Chief Executive David H. Murdock Jr. agreed to pay $13.50 a share for the 60% stake in the company that he does not own. The offer is 5% premium to the closing price of $12.81 on Friday’s close and 12.5% higher than $12 a share.

European Markets

European markers eased in thin trading after weaker than expected increase in Japanese GDP growth.

In London trading, FTSE 100 index fell 0.4% or 24.54 to 6,559 and in Frankfurt the DAX index slid 0.3% or 25.87 to 8,312

Telekom Austria declined after reporting less than expected operating earnings and German construction company Bilfinger increased after the company revised its annual outlook.

Asian Markets

In Tokyo, stocks declined in thin trading after Japan reported a decline in June quarter economic growth to 2.6% from the 3.8% increase in the previous quarter.

In Shanghai, stocks soared after a report suggested that central government is offering stimulus to local and regional authorities to sustain construction and other infrastructure projects.

In Mumbai, investors focused on more steps from the Reserve Bank of India after rupee continued its slide and dropped to a new record low close. The central bank is expected to limit imports and curb import of gold and other precious metals and delay the approval of other foreign purchases.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc