Red Bluff Daily News

February 25, 2014

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NEW YORK (AP) — The stock market ended higher Monday, but a late fade kept it from closing at an all-time high. The market marched broadly higher most of the day, helped by opti- mism about the econo- my and more corporate mergers, only to slowly lose momentum in the final half hour of trad- ing. The Standard & Poor's 500 index ended up 11.36 points, or 0.6 percent, to 1,847.61 — just short of its record close of 1,848.38 set on Jan. 15. The momentum helped the index set a new intraday high of 1,858.76 earlier in the day, however. The Dow Jones industrial average rose 103.84 points, or 0.6 percent, to 16,207.14 and the Nasdaq compos- ite rose 29.56 points, or 0.7 percent, to 4,292.97. Investors had little in the way of economic data or corporate earn- ings to work through, so much of Monday's focus was on another round of corporate deal making. Chipmaker RF Micro Devices jumped $1.22, or 21 percent, to $7.03 after it said would buy a competitor, TriQuint Semiconductor, in an all-stock deal valued at about $1.56 billion. TriQuint soared $2.41, or 26 percent, to $11.64. Meanwhile, men's clothing chain Jos. A. Bank rose $4.99, or 9 percent, to $60.04 after competitor Men's Wear- house increased its buy- out offer. Men's Wear- house rose $3.40, or 8 percent, $48.51. M&A has taken off this year. Last week, Forest Laboratories and Actavis announced a $25 billion merger and Facebook said it was buying WhatsApp for $19 billion. That's on top of deals or offers announced this week. Companies buying competitors, or buying up a company whose product interests them, should be seen as a pos- itive for stocks, market watchers say. ''It shows that com- panies still see value in this market, even at these highs,'' said Quin- cy Krosby, a market strategist at Prudential Financial. In the last two-and-a- half weeks, the stock market has basically erased of the losses it experienced after a dif- ficult start to the year. The S&P 500 index was down as much 6 percent for the year as of February 3 as investors worried about emerging markets like China and Turkey. The U.S. economic recovery was also showing signs of slowing growth. But the U.S. stock market has recovered as turbulence in overseas markets calms down. In the latest develop- ment in overseas mar- kets, the chaos in Ukraine came to an abrupt halt over the weekend following the ouster of President Vik- tor Yanulovych. Investors had been wor- ried about the escalating violence. ''The risks in emerg- ing markets continue to recede, and now the problems in the Ukraine are out of the way,'' said Bill Stone, chief invest- ment strategist at PNC Wealth Management. The S&P 500's 1,850-point level con- tinues to be a ceiling for investors trying to bid stocks higher. The index has tried to close above 1,850 three times in the last three months, fail- ing each time. Investors have a chance to test all-time highs after economic reports come out later this week. Fed Chair Janet Yellen will testify in front of the Senate Banking Committee on Thursday. Economic reports this week include durable goods orders and U.S. fourth- quarter gross domestic product. Government bond prices were flat Mon- day. The yield on the 10-year Treasury note was unchanged from Friday at 2.74 percent. The price of oil rose 62 cents to $102.82 a bar- rel. Gold rose $14.40 to $1,338 an ounce. In other corporate news: — Netflix and Com- cast reached an agree- ment to ensure that the online video service's shows and movies are streamed smoothly. No details were released about the cost to Net- flix. Comcast gained 10 cents, or 0.2 percent, to $51.15 and Netflix was up $14.77, or 3 percent, to $447. — eBay rose $1.71, or 3 percent, to $56.30 after the activist share- holder Carl Icahn dis- closed a 2 percent stake in the company. Icahn is looking to replace sev- eral members of eBay's board of directors. 8B Daily News – Tuesday, February 25, 2014 327 Walnut St., Red Bluff (530) 529-4004 Voted Best Carpet / Floor Covering Store in Tehama County. DALE'S CARPET & DESIGN 20815 Dalby Ln. Red Bluff 527-5314 Where Excellence Meets Affordable No Appointment Necessary FREE Is Your Check Engine Light On? 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