• Road to riches

    Taxpayers keep funding structures with big plans but who knows what efficacy, says Mandi Smallhorne.

  • Don't fall for Ponzi scams

    An expert unpacks the tell-tale signs to watch out for.

  • Inside Labour

    A smokescreen of misleading rhetoric won't make SA's problems go away, says Terry Bell.

See More

US stocks flat despite airline deals

Feb 15 2013 07:30 AFP

Related Articles

Wall St pauses after 5-year high rally

US stocks slip in directionless trade

US stocks little changed

US stocks slump amid eurozone worries

Wall St advances led by defensive stocks

Dow edges toward record high


New York - US stocks traded flat on Thursday despite the excitement from two giant M&A deals, the merger of American Airlines and US Airways, and Berkshire Hathaway and 3G's takeover of ketchup maker Heinz.

Analysts said the markets were partly echoing the slump in European markets on dismal economic growth reports from eurozone countries, as well as Japan.

Outstanding concerns about Europe were "exacerbated by a larger-than-expected contraction for the eurozone economy," said a note from Charles Schwab & Co.

At the close, the Dow Jones Industrial Average was down 9.52 points at 13,973.39.

The broad-based S&P 500 added 1.05 to reach 1,521.38, while the tech-rich Nasdaq Composite gained 1.78 points to 3,198.66.

US Airways shares fell 4.6% after the official announcement of its long-awaited merger with American Airlines, creating the largest US carrier.

American parent AMR Corp, under bankruptcy reorganisation, jumped 63.1%.

Heinz shares soared nearly 20% to $72.50 after the shock announcement that billionaire Warren Buffett's investment firm would partner with 3G Capital to buy Heinz in a $28bn deal offering shareholders $72.50 a share. Berkshire's B shares finished up 1.3%.

Other food companies also gained on the news, including General Mills, which rose 3.1% and Kraft Food Group, which jumped 0.8%.

Shares of Belgian-US giant Anheuser-Busch InBev, whose $20.1bn takeover of Mexican brewer Grupo Modelo has been challenged by US antitrust regulators, jumped 5.1 percent after the two companies said they would divest specific Modelo assets to please the regulators.

Distributor Constellation Brands, the main beneficiary of the divestments, rose 37.2%.

General Motors reported higher year-on-year earnings but still fell 3.2% after the profits came in below expectations amid losses in Europe.

Cisco Systems reported earnings that bested expectations, but gave up 0.7% following company comments that the European market remained difficult.

PepsiCo picked up 1.1% after reporting a 17 rise in year-over-year earnings.

Oil services firms Halliburton and Schlumberger picked up 6.1% and 3.7% respectively, while independent energy producer Apache fell 4.7% on property writedowns.

Telecommunications and cloud infrastructure company CenturyLink tumbled 22.3% after announcing it would cut its dividend.

Specialty food chain Whole Foods Market slipped 9.7% after it pointed to higher expenses and said profits would be lower in subsequent quarters compared with the first quarter.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.00 from 2.02 late on Wednesday, while the 30-year fell to 3.18 from 3.22 a day earlier. Bond prices and yields move inversely.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

wall street  |  markets



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

People who fall victim to Ponzi scams are:

Previous results · Suggest a vote