Connect to share and comment

US stocks rise on Cyprus deal; S&P near record

PlacardEnlarge
(Globalpost/GlobalPost)

US stocks moved higher Monday, with the S&P just shy of its record closing, after a last-minute deal to resolve the Cyprus banking crisis bolstered markets in Europe and Asia.

About 30 minutes into trade, the Dow Jones Industrial Average gained 48.25 (0.33 percent) to 14,560.28.

The broad-based S&P 500 increased 7.49 (0.48 percent) to 1,564.38, while the tech-rich Nasdaq Composite Index jumped 13.97 (0.43 percent) to 3,258.97. The S&P 500 was less than a point from its all-time closing high.

Briefing.com analyst Patrick O'Hare described the market reaction after the 10 billion euro ($13 billion) EU-IMF bailout deal for Cyprus was announced as "somewhat subdued," perhaps in anticipation of political or social opposition that could surface in response to the agreement.

"Then again, markets didn't necessarily overreact on the downside when the Cyprus situation presented itself last week," O'Hare said.

Trade was heavy in Dell as a bidding war emerged for the computer manufacturer, sending its shares up 3.3 percent to $14.60.

Longtime Wall Street activist Carl Icahn and private equity firm Blackstone Group both submitted rival offers to founder and chief executive Michael Dell's $24.4 billion bid to take the company private, which valued the company at $13.65 per share.

Discount retailer Dollar General Corp. gained 3.7 after besting earnings estimates and forecasting a strong year in 2013. The company projected same-store growth of four to six percent in 2013.

The results also bolstered another low-price retailer, Dollar Tree, which rose 2.0 percent.

Apollo Group, which provides online educational programs, jumped 12.6 percent after reporting earnings that beat expectations when special items were excluded. The company also offered a forecast range on 2013 revenues that was about in line with expectations.

Biotechnology company United Therapeutics Corp. dropped 3.2 percent after announcing the Federal Drug Administration declined to approve a new drug for treating pulmonary arterial hypertension.

Bond prices fell. The yield on the 10-year Treasury rose to 1.95 percent from 1.92 percent late Friday, while the 30-year rose to 3.17 percent from 3.14 percent. Bond prices move inversely to yields.

jmb/pmh

http://www.globalpost.com/dispatch/news/afp/130325/us-stocks-rise-cyprus-deal-sp-near-record