S&P 500 Rises to Highest in Five Years on Merger Optimism
By Nikolaj Gammeltoft & Sarah Pringle - Feb 19, 2013 2:20 PM ET
U.S. stocks rose, sending the Standard & Poor’s 500 Index to its highest level in five years, on optimism over dealmaking and data showing rising investor confidence in Germany.
Office Depot Inc. soared 12 percent and OfficeMax Inc. surged 22 percent as a person familiar with the matter said the companies have discussed a merger and may announce a deal as early as this week. Bank of America Corp. and Citigroup Inc. rose more than 1.9 percent as financial shares rallied. Google Inc. jumped 1.2 percent, surpassing $800 for the first time.
The S&P 500 increased 0.6 percent to 1,528.83 at 2:18 p.m. in New York. The Dow Jones Industrial Average advanced 52.78 points, or 0.4 percent, to 14,034.54. Trading in S&P 500 companies was 4.2 percent above the 30-day average at this time of day. U.S. equity markets were closed yesterday for the Presidents Day holiday.
“More deals out there do create a good sentiment,” Kevin Divney, chief investment officer at Beaconcrest Capital Management in Boston, said in an phone interview. “It’s a positive now because CEOs now are looking further out, and that’s been the issue the past four years. If we can extend horizons it makes for better strategic decisions.”
The S&P 500 completed its seventh consecutive weekly advance on Feb. 15, climbing 0.1 percent for the five days amid optimism over corporate merger activity and better-than- estimated economic data. The benchmark gauge is 2.3 percent below its 2007 all-time high of 1,565.15, while the Dow is 0.9 percent from its record high of 14,164.53.
more:
http://www.bloomberg.com/news/2013-02-19/u-s-stock-futures-are-little-changed-best-buy-advances.html
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