US stocks jump on wave of deals and gains for tech companies
NEW YORK (AP) -- U.S. stocks are higher Monday following a series of corporate deals. The largest by far is AT&T's plan to buy Time Warner for $85.4 billion, but investors aren't sure if the combination will be approved by regulators. Aerospace company Rockwell Collins agreed to buy B/E Aerospace. Technology companies are making the largest gains while energy companies fall with the price of oil.
KEEPING SCORE: The Dow Jones industrial average gained 55 points, or 0.3 percent, to 18,200 as of 12:50 p.m. Eastern time. The Standard & Poor's 500 index rose 7 points, or 0.3 percent, to 2,147. The Nasdaq composite climbed 41 points, or 0.8 percent, to 5,298.
HOLD THE PHONE: Over the weekend telecom giant AT&T agreed to buy Time Warner, the entertainment conglomerate that owns HBO, CNN and Warner Bros. Time Warner jumped almost 8 percent Friday but gave back some of those gains Monday. It's far below the $107.50 AT&T has agreed to pay.
Both presidential tickets and other political figures have already expressed skepticism about the deal, and some are already opposed to it. Meanwhile investors worried about the high price AT&T is paying and the large amount of debt it would take on. AT&T, which bought DirecTV for $48.5 billion last year, already has about $117 billion of long-term debt.
AT&T fell 55 cents, or 1.5 percent, to $36.94 while Time Warner lost $2.10, or 2.3 percent, to $87.38.
LIFTOFF: Aviation electronics company Rockwell Collins agreed to buy commercial aircraft and business jet maker B/E Aerospace for $62 a share, or $6.4 billion in cash and stock. B/E Aerospace climbed $7.88, or 15.6 percent, to $58.50 while Rockwell Collins gave up $5.72, or 6.8 percent, to $78.74.
CLICK, DEAL: TD Ameritrade agreed to buy competitor Scottrade. The $4 billion deal would bring together two big online brokerages at a time when investors are choosing index funds over stock picking, and it will also combine TD Bank with Scottrade Bank. TD Ameritrade slid $1.15, or 3.1 percent, to $35.93.
GIMME: China Oceanwide Holdings agreed to buy financial services firm Genworth Financial for $5.43 per share, or $2.7 billion. Genworth stock has taken big losses since the financial crisis. It was worth about $25 a share at the end of 2007 and hasn't approached that level since. It's made some recoveries, but fell about 50 percent in 2014 and again in 2015. The stock slid further Monday, losing 37 cents, or 7.1 percent, to $4.84.
TECH GAINS: Technology companies led the market higher. Microsoft, which is trading at all-time highs, rose 81 cents, or 1.3 percent, to $60.47. Alphabet, Google's parent company, picked up $12.88, or 1.6 percent, to $836.94 and Apple added 68 cents to $117.28. Apple will make its quarterly report late Tuesday, while Alphabet will follow suit on Thursday.
ENERGY: Benchmark U.S. crude fell $1.08, or 2.1 percent, to $49.77 a barrel in New York. Brent crude, used to price international oils, shed $1.09, or 2.1 percent, to $50.69 a barrel in London. Chevron declined $1.14, or 1.1 percent, to $100.16 and Anadarko Petroleum slid $1.74, or 2.7 percent, to $61.80.
DIALED IN: Wireless carrier T-Mobile jumped after reporting better-than-expected results for the third quarter. The company said it gained 2 million customers over the last three months and said it expects greater growth for the year. T-Mobile gained $3.42, or 7.3 percent, to $50.18. It hadn't traded above $50 a share since 2007.
NEED SOME TISSUES: Consumer products maker Kimberly-Clark fell $4.36, or 3.6 percent, to $115.22. The maker of consumer products such as Huggies diapers and Kleenex tissue reported weak results for the quarter and cut its annual sales forecast.
CURRENCIES: The dollar rose to 104.23 yen from 103.85 yen. The euro edged up to $1.0877 from $1.0871.
BONDS: Bond prices slipped. The yield on the 10-year Treasury note rose to 1.76 percent from 1.74 percent.
OVERSEAS: Germany's DAX gained 0.5 percent and the CAC 40 in France added up 0.4 percent. The FTSE 100 of Britain lost 0.5 percent. Hong Kong's Hang Seng jumped 1 percent while Japan's Nikkei 225 rose 0.3 percent and the Kospi in South Korea climbed 0.7 percent.