US REPORT: Dow Jones:11,980.52 (+108.68) S&P 500:1,290.84 (+7.49) Nasdaq:2,717.55 (+28.01)
US STOCKS advanced, sending the Dow Jones Industrial Average to the highest level since June 2008, as acquisitions, share-buyback plans and dividend prospects bolstered investors’ optimism.
“Corporate actions, such as buybacks, dividends and MA, make valuations attractive,” said Peter Jankovskis, who helps manage more than $2.6 billion at Oakbrook Investments in Lisle, Illinois.
“That’s an indication of management’s confidence in the future. Earnings at US companies have been strong. That’s positive for the equity market,” he said.
Technology companies, which account for about 19 per cent of the S&P 500, gained the most of 10 industry groups in the gauge.
Intel rose 2 per cent to $21.24. The company plans to return more money to shareholders as corporate spending on technology boosts profit.
Smurfit-Stone Container rose 27 per cent to $34.99. Rock-Tenn agreed to buy the marker of material for cardboard boxes for $3.5 billion, creating North America’s second-biggest container board producer.
Other producers of pulp and paper also gained, with International Paper advancing 3.2 per cent to $28.81.
Alcoa, the largest US aluminum producer, rose the most in the Dow, gaining 4 per cent to $16.43.
Berkshire Class A shares climbed 3.2 per cent to $124,400.
Apple added 3.3 per cent to $337.45. The company will start selling the iPad 3G model in China “in the first quarter”, Shanghai Daily said, citing an unidentified official at China Unicom.
Nvidia had the biggest gain in the SP 500, rallying 11 per cent to $24.73. The maker of computer- graphics chips may climb as much as 80 per cent in the next year on the success of its Tegra processor in the tablet computer and smartphone markets, Barron’s reported.
Sara Lee fell 1.8 per cent to $18.36. The food company received a takeover bid from Apollo Global Management LLC, Bain Capital LLC and TPG Capital that is higher than the food company’s current share price of $18.70.
JC Penney advanced 7.2 per cent to $32.52. The third-largest US department store chain named William Ackman to its board after the activist investor became its biggest shareholder. – (Bloomberg)
