Equities Today: Wall Street Bounces Back

by: Midnight Trader

4:20 PM, Sep 1, 2010 --

  • NYSE up 206.8 (+3.1%) to 6,910.94
  • DJIA up 254.75 (2.5%) to 10,269
  • S&P 500 up 30.9 (+2.9%) to 1,080
  • Nasdaq up 62.8 (+2.9%) to 2,177


  • Hang Seng up 0.43%
  • Nikkei down 1.17%
  • FTSE up 2.70%


(+) AAPL gains, leads techs higher after updating its iPod line, refreshing Apple TV.

(+) CREE upgraded.

(+) TASR inks new contract.

(+) NFLX gains on speculation Netflix movies could be included in
Apple (NASDAQ:AAPL) announcement.

(+) ERIC gains on growth comments.

(+) BP selling some Malaysian assets.

(+) BKC jumps on potential private equity takeover.

(-) HNZ beats with earnings, shy with sales, backs outlook.

(+) CASY gets raised offer.

(+) SLRY sold for $4.07 a share.

(+) KNXA buying Salary.com.


(-) LTXC guides in line for Q1.

(-) FORM continues evening drop after cutting revenue view.


Stock averages close up between 2% and 3%, in the upper end of the session's range, after favorable global and U.S. economic data. The DJIA's 255-point jump is its best day in nearly two months.

Oil futures gained nearly 3%, the best one-day gain in nearly a month Wednesday. Oil for October delivery ended floor settlement on the New York Mercantile Exchange up $1.99, or 2.8%, at $73.91 a barrel.

Investors shrugged off new data that showed a decline in private payrolls for August, opting to focus on evidence that manufacturing in the U.S. grew last month.

ADP reported private payrolls declined 10,000 in August after a downwardly revised 37,000 job gain in July. The August reading was slightly worse than economists expected. Crude, gold and copper prices remain higher in the wake of the data.

But the U.S. Aug. Institute for Supply Management factory index came in at 56.3, up from 55.5 in July and above estimates for 53.2. The employment index improved to 60.4 in August from July's 57.8. Production also jumped. New orders slipped to 53.1 in August from 53.5 in the prior month.

Stocks started the day on solid footing with help from abroad. China's official government Purchasing Managers Index rose to 51.7 in August from 51.2 in July. A separate privately issued PMI, put out by HSBC and compiled by Markit, rebounded to 51.9 from 49.4 in July. July's reading marked the first contraction in manufacturing activity in 16 months.

Deal rumblings continue to support Wall Street gains.

Burger King (BKC-OLD) gained following a Wall Street Journal report that the company has in recent weeks held discussions with private-equity firms about the prospect of a takeover of the company.

Casey General Stores (NASDAQ:CASY) gained after Canada's Alimentation Couche-Tard announced that it has increased its tender offer, through an indirect wholly owned subsidiary, to acquire all of the outstanding shares of common stock of CASY to $38.50 per share in cash. The revised offer implies a total enterprise value of approximately $2.0 billion on a fully diluted basis, including net debt of Casey's of approximately $528 million.