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News on Murdoch's bid lifts Wall Street to record

News on Murdoch's bid lifts Wall Street to record

Investors resumed their buying spree on Wall Street Tuesday, driving stocks higher after a bid for media company Dow Jones & Co. revived enthusiasm about takeover activity.
The Dow Jones industrial average reached another record close, its 38th since last October, as big company stocks benefited from the turnaround.
Earlier in the session, stocks wavered on mixed economic data that showed strength in manufacturing but a wilting housing market and weak car sales. After April's big advance, investors were wary that the current economy wouldn't justify another move higher on Wall Street.
But the caution dissipated after Dow Jones, which publishes The Wall Street Journal, confirmed that it received an unsolicited bid from Rupert Murdoch's News Corp. to buy the company for US$5 billions, or US$60 a share.
"The market kind of just took off from there," said Todd Leone, managing director of equity trading at Cowen & Co. News of the bid boosted media companies and publishers in particular, but also encouraged buying in other sectors, too, as it reaffirmed the ongoing trend of surging takeover activity in corporate America despite an economic slowdown. "It's money pouring into the market," he said.
The Dow industrials rose 73.23, or 0.56 percent, to 13,136.14. The Standard & Poor's 500 index rose 3.93, or 0.27 percent, to 1,486.30, and the Nasdaq composite index rose 6.44, or 0.26 percent, to 2,531.53.
After investors heard that Dow Jones was a takeover target, the company's stock surged US$20.95, or 58 percent, to US$57.28. News Corp., which owns the Fox broadcast network among many other media properties, fell US$1.01, or 4.2 percent, to US$22.99.
Though takeover fervor gave stocks a boost Tuesday, investors will be closely watching upcoming economic data to decide whether to tread further into record terrain or restrain their buying. April saw the biggest percentage gain in the Dow since December 2003. "I would expect we spend some time in May digesting that move," said Arthur Hogan, chief market analyst at Jefferies & Co.
The Russell 2000 index rose 1.68, or 0.21 percent, at 816.25.


Updated : 2021-05-18 04:41 GMT+08:00