12:45 PM New York – Stocks on Wall Street rose after durable goods soared in July and consumer confidence index jumped to the most since October 2007. Burger King agreed to acquire Tim Hortons for $11 billion in a deal financed by Warren Buffett.
Stocks on Wall Street gained after durable goods soared in July and consumer confidence unexpectedly increased.
S&P 500 index increased 6.72 or 0.4% to 2,004.65 and the Nasdaq Composite gained 0.3% or 13.50 to 4,570.86.
Burger King and Tim Hortons Agree to a Deal
Burger King Worldwide Inc agreed to acquire Tim Hortons Inc for C$12.5 billion or $11.4 billion in a deal partly financed by Warren Buffett’s Berkshire Hathaway Inc.
Tim Hortons investors will receive C$65.50 a share and 0.8025 share of the combined entity, according to the company statements.
Best Buy Co dropped after sales declined more than expected and DSW Inc soared 10% after quarterly profit rose more than expected.
The Conference Board reported consumer confidence index increased to 92.4 in August from a revised 90.3 in July. The index increased to the most since October 2007.
Durable Goods Orders Soar
Durable goods orders soared 22.6% in July from a revised 2.7% increase in June, the Commerce Department said today in Washington.
Orders excluding transportation equipment decreased 0.8% in July after a 3% increase in June.
The transportation orders were boosted by a surge in aircraft orders after the Farnborough Air Show in the U.K. Boeing Co received 324 orders for planes compared to 109 in June.
Non-military capital goods orders excluding aircraft decreased 0.5% in July after a revised June increase of 5.4% from the previous estimate of 1.4%.
Business investments in equipment soared at 7% annual rate in the second quarter to June from a 1% annual decline in March quarter, the Commerce Department’s report on gross domestic report showed.
Best Buy Co Inc
) plunged 6.3% or $2.02 to $29.97 after the electronics products retailer reported revenue in the second-quarter ending on August 3 declined 4% to $8.90 billion from a year ago period. Comparable store sales in the quarter slipped 2% while and online comparable sales surged 22%.
Net income in the quarter tumbled 45.1% to $146 million or 42 cents a diluted share compared to $266 million or 77 cents from a same quarter last year.
) surged 9.2% or $2.60 to $30.98 after the footwear and accessories retailer reported net sales in the second-quarter ending on August 2 jumped 4.5% to $587 million from a year ago period.
Net income in the quarter rose 1.8% to $34.3 million or 38 cents a diluted share compared to $33.7 million or 37 cents from a same quarter last year.
In London trading, FTSE 100 index gained 0.5% or 31.37 to 6,806.62 and in Frankfurt the DAX index rose 0.3% or 32.55 to 9,542.69.
In Paris, CAC 40 index jumped 0.7% or 32.75 to 4,374.86.
Antofagasta net plunged 16% after revenue declined 4%. Petrofac profit tumbled 44% and revenue plunged 11% but backlog surged 35% to $20 billion. Regus declined 5% to £25 million. UTV Media profit climbed 132% and revenue soared. WPP profit surged 26% to £396 million.