A round of corporate dealmaking has the markets and exchange traded funds (ETFs) mixed as they try to suss out the ultimate impact.
Oil giant Chevron Corp (NYSE: CVX) announced that it plans on acquiring Atlas Energy (NYSE: ATLS) in a deal valued at $4.3 billion. The news has exploded Atlas shares up almost 35% so far today. This is the latest round in the continued consolidation of the energy industry. SPDR S&P Oil & Gas Exploration & Production (NYSEArca: XOP) is up 2.6% so far this morning; Atlas and Chevron are both 2.7%. [Oil Exploration ETFs: A Bargain-Hunter’s Dream?]
Another deal in the works is Sara Lee Corp (NYSE: SLE) announcing plans to sell its North American bakery business to Mexican food giant Grupo Bimbo for $959 million. Sara Lee, known for a broad range of products including Jimmy Dean sausages, also raised its 2011 earnings outlook – the stock is up 2% in early trading. PowerShares Dynamic Food & Beverage (NYSEArca: PBJ) is down 0.4% so far today; Sara Lee is 2.5%. [Food and Beverage ETFs Serve Up Returns.]
Restraining further gains in the Eurozone are mounting concerns that Ireland will have to be bailed out by its partners in Europe and the International Monetary Fund to stave off default – similar to what Greece dealt with earlier this year. If that comes to fruition, it could be a turning point for iShares MSCI Ireland (NYSEArca: EIRL), which is up today by nearly 3%. [PIIGS ETFs Not Out of the Woods Yet.]
Gold is continuing on its record run, rising $12.20 to $1,415.40 an ounce in electronic trading. . Investors can ride the gold bandwagon on the Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ) up more than 3% so far today. [4 Ways to Get Gold ETF Exposure.]
Gregory A. Clay contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.