(By Salman - iStockAnalyst Writer) US stocks mostly higher on Tuesday as news of corporate dealmaking boosted investors' hopes for a recovery in the economy.
The Dow Jones Industrial Average fell 17.53 points or 0.18% to finish at 9,771.91. The S&P 500 rose 2.53 points or 0.24% to end at 1,045.41. The Nasdaq Composite gained 8.12 points or 0.40% to 2,057.32.
The Commerce Department reported Tuesday that new factory orders climbed 0.9% in September following an unrevised 0.8% decline in August. Economists expected new factory orders to increase 0.8% in September.
Shares of chipmaker Intel Corp. (NASDAQ:
INTC) plunged 51 cents or 2.68% to $18.50 after Morgan Stanley downgraded the semiconductor industry, warning that inventory was creeping up and revenue growth could peak in early 2010. .
Merck & Co. (NYSE:
MRK) tumbled 59 cents or 1.89% to $30.67.
Shares of equipment maker Caterpillar Inc. (NYSE:
CAT) rallied 97 cents or 1.75% to $56.46.
Early on Tuesday, Viacom (NYSE:
VIA) said that its third-quarter profit surged 15 percent to $463 million, or 76 cents per share, from $401 million, or 65 cents per share, in the prior-year quarter. Excluding certain one-time gains, adjusted earnings came to 69 cents a share. Revenue slipped 3 percent to $3.3 billion. Shares of Viacom rose 40 cents or 1.34% to $30.17.
Shares of Archer Daniels Midland (NYSE:
ADM) rallied $1.39 or 4.55% to close at $31.91 after it said that its first-quarter profit plunged 53 percent to $496 million, or 77 cents per share, compared with $1.04 billion, or $1.62 per share, in the comparable quarter last year. Revenue declined 29 percent, to $14.9 billion.
Tenet Healthcare Corp.(NYSE:
THC) said Tuesday that it swung to a third quarter loss of $3 million, or 1 cent a share $104 million, or 22 cents a share, compared to earnings of $104 million, or 22 cents a share, in the prior-year quarter. Net operating revenue increased 5.2% to $2.24 billion, compared to $2.13 billion a year ago. Shares of the company finished at $5.40, up 10 cents or 1.89%.
Warren Buffet's Berkshire Hathaway (NYSE:
BRK-A) on Tuesday said that it has agreed to acquire railroad firm Burlington Northern Santa Fe (NYSE:
BNI) for $44 billion. Berkshire said that it will pay $100 a share in cash and stock for the 77.4% of the company it does not already own. It is also taking on $10 billion of Burlington Northern debt. Berkshire shares climbed 1.72%. Shares of Burlington Northern jumped $20.93 or 27.51% to $97.
Meanwhile, Johnson & Johnson (NYSE:
JNJ) announced that it intends to eliminate up to 7% of its global workforce as part of a cost-cutting plan aimed at saving the company up to $1.7 billion by 2011. Shares of the healthcare giant fell 56 cents or 0.94% to $58.93.
European stocks settled lower. The UK FTSE fell 67.29 points or 1.32% to 5,037.21. The German DAX and French CAC decreased 1.43% and 1.52% respectively.
Asian stocks finished down. The Hang Seng index of Hong Kong dropped 380.13 points or 1.76% to 21,240.06.
NYMEX crude oil for December delivery climbed $1.44 or 1.8% to settle at $79.57 a barrel.
Disclosure: Author doesn't own any of the stocks discussed here.
