merger news more important than subprime lending sector collapsing

Discussion in 'Trading' started by S2007S, Mar 12, 2007.

  1. S2007S


    Stocks Look Past Subprime Woes
    Monday March 12, 4:10 pm ET
    By Tim Paradis, AP Business Writer
    Stocks Close Higher As Investors Look Past Subprime Lender Woes

    NEW YORK (AP) -- Stocks climbed moderately Monday as investors looked past widening cracks in the subprime lending sector to another parade of acquisition deals.

    A warning from New Century Financial Corp. early Monday about its financial woes initially overshadowed acquisition news involving companies such as Dollar General Corp. and Schering-Plough Inc. Investors have faced concerns that a blowup among companies making loans to consumers with poor credit could spill into other industries.

    Beyond merger news, which is often seen as bullish for stocks, anticipation of a solid midquarter update from Texas Instruments Inc. Monday helped spur technology shares higher.

    According to preliminary calculations, the Dow Jones industrial average rose 42.30, or 0.34 percent, to 12,318.62.

    Broader stock indicators also rose. The Standard & Poor's 500 index advanced 3.75, or 0.27 percent, to 1,406.60, and the Nasdaq composite index rose 14.74, or 0.62 percent, to 2,402.29.