Closing Update for Monday, Sept. 28: Ending the Slide

by: Midnight Trader

4:10 PM, Sep 28, 2009 --

  • NYSE up 116.3 (1.7%) to 6,939.77.
  • DJIA up 124.2 (1.3%) to 9,789.
  • S&P 500 up 18.6 (1.8%) to 1,063.
  • Nasdaq up 39.8 (1.9%) to 2,131.


  • Hang Seng down 2.07%
  • Nikkei down 2.5%
  • FTSE up 1.49%


(+) CSCO advanced on upgrade.

(+) AMAT inked service contract with Fujitsu Microelectronics and gets upgrade to buy from Citigroup.

(+) HLCS announced system sale, collaboration with Correlagen Diagnostics.

(+) GMTN gained on going private transaction.

(+) ACS being acquired by XRX for $63.11 in cash and stock.

(+) GETI to be acquired by private equity firm for $38 per share.

(+) ZUMZ guided for Q3 ahead of previous expectations.

(+) PMRY to be bought by Platinum Equity LLC for $6.50 per share cash.

(+) COMS gains after Jim Cramer highlights stock on Mad Money show Friday night.


(-) CALM declined on lower-than-expected Q1 results.

(-) CLSN plunged on $7.1 mln registered direct offering.


Most stock averages close up nearly 2%, recouping much of last week's decline. The DJIA advances 123 points, its biggest one-day point jump in around a month.

Stocks gained on a fresh wave of M&A announcements, including a deal by Xerox (NYSE:XRX) to acquire Affiliated Computer Services (ACS) for $6.4 billion.

A busy week for economic news is on tap that could make trading volatile in coming days. Last week, the Dow Jones industrials fell 1.6%, the Standard & Poor's 500 index lost 2.2% and the Nasdaq Composite Index slid 2%.

Among major economic news this week, the Case-Shiller housing price index and consumer confidence data are due out Tuesday morning, while GDP, ADP employment and crude inventories are slated for release on Wednesday. On Thursday, initial claims, construction spending, the ISM Index and pending home sales will be announced. Friday will see the release of the U.S. unemployment rate.

A number of companies will also be offering fresh guidance ahead of Q3 earnings reports, which are due next month.

Leading the M&A news today, XRX says it will pay 4.935 XRX shares and $18.60 in cash for each share of ACS, totaling $63.11 per share based on Friday's closing price.

Other M&A anouncements, mostly in health care, also boosted sentiment.

Abbott Laboratories (NYSE:ABT) gained after the company said it will buy the pharmaceutical business of Belgium's Solvay (OTC:SVYSY) for as much as $7 billion in a deal that will expand its presence in emerging markets.

Covidien (COV) will acquire brain-monitoring technology firm Aspect Medical Systems (ASPM) for $12 a share in cash, or a total of about $210 million, net of cash and short-term investments acquired.

Johnson & Johnson (NYSE:JNJ) says it's bought 18% of Crucell (NASDAQ:CRXL) for 301.8 million euros ($440 million) -- a 30% premium to Friday's close -- and will pay development milestones and royalty payments if flu vaccines that the two firms will develop make it to the market.

Outside of healthcare, CF Industries (NYSE:CF) says it bought 7% of Terra Industries (TRA) on the open market and has proposed a merger plan to TRA.

Elsewhere, the tech sector got a boost from an upgrade on Cisco (NASDAQ:CSCO) and a positive mention for 3Com (COMS) on Jim Cramer's Mad Money show.

As for decliners, FairPoint Communications (NASDAQ:FRP) plunged after the company says it is in talks with lenders and may be forced to file Chapter 11 bankruptcy.

In retail, Jones Apparel (NYSE:JNY) and Liz Claiborne (LIZ) fell after receiving downgrades to "neutral" from "buy" at Goldman Sachs.

Crude futures rose 1% to $66.84 a barrel, rebounding after a slide of more than 8% last week. Gains followed the dollar's decline from earlier highs and as geopolitical tensions were heightened following short-range missile tests conducted by Iran.

Overseas, Asia closed lower as fears the strong yen, which hit an eight-month high against the dollar, would hurt exporters. European stocks are higher.