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US shares rebound, Dell up on deal to go private

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(Globalpost/GlobalPost)

US shares rebounded in opening trade Tuesday after the previous day's sharp correction, as Dell added 0.6 percent after the company announced a plan to take itself private and de-list from the Nasdaq.

An hour into trade, the Dow Jones Industrial Average added 101.53 points (0.73 percent) at 13,981.61.

The S&P 500 index gained 11.78 (0.79 percent) at 1,507.49, while the tech-rich Nasdaq Composite picked up 24.06 points (0.77 percent) at 3,145.23.

The rebound made up more than half the S&P's 17.46 point drop on Monday, which analysts chalked up mainly to a correction after markets plowed to fresh five-year highs last week, the Dow topping the 14,000 mark on Friday.

"The quick turnaround is apt to stir thoughts that yesterday's broad-based retreat was little more than some overdue profit taking that was catalyzed by some convenient excuses emanating from Europe and the post-traumatic headline that the US government is going to be suing Standard & Poor's over its pre-crisis credit ratings," said Patrick O'Hare of Briefing.com.

Dell shares gained 1.0 percent at $13.41 after the company announced a $24.4 billion deal to go private, valuing the company at $13.65 a share.

McGraw-Hill, the owner of S&P, plunged 5.8 percent, following Monday's near-14 percent loss, after the Justice Department sued the company over its ratings in 2007 of mortgage bonds and reports said the government was seeking at least $1 billion in damages.

Fast-food franchise giant Yum Brands, owner of Kentucky Fried Chicken and Pizza Hut, sank 4.1 percent after its fourth-quarter earnings showed more impact in its China business from bad publicity over the healthiness of chicken raised on Chinese farms.

British Internet and cable TV firm Virgin Media gained 16.2 percent as it confirmed talks with Liberty Global to merge.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.01 percent from 1.97 percent late Monday, while the 30-year moved to 3.21 percent from 3.18 percent. Bond prices and yields move inversely.

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http://www.globalpost.com/dispatch/news/afp/130205/us-shares-rebound-dell-deal-go-private