Exchange traded funds (ETFs) on Monday rose higher with sentiment lifted by corporate earnings, a round of deal-making and a decline in tension in Egypt.
- European stocks rose for a fifth consecutive session this morning, buoyed by strong corporate reports and optimism over global economic growth. The Stoxx Europe 600 Index rose this morning after gaining 1.9% last week. “It’s an extension of what we’ve seen in recent weeks, positive momentum supported by strong fundamentals,” said Mike Lenhoff, chief strategist at Brewin Dolphin. The SPDR Stoxx Europe 50 ETF (NYSEArca: FEU) is up in early trading.
- Japanese shares rose Monday as exporters got a lift from a weakened yen, while energy producers such as PetroChina Co. pressured Hong Kong stocks as crude-oil prices dipped. “Encouraging economic data, particularly in the United States, have helped to shield markets to some extent … the main impact of Egypt and Middle East contagion continues to be felt on oil prices, although we believe this will be short-lived,” Credit Agricole said in a note to clients. The iShares MSCI Japan Small Cap Index ETF (NYSEArca: SCJ) rose on Monday.
- AOL Inc. said Monday that it has signed a definitive agreement to acquire news website Huffington Post for $315 million. The deal — which has already been approved by the two companies’ boards and is now subject to conditions including receipt of government approvals — is aimed to create a content group “for the digital age — leveraged across online, mobile, tablet and video platforms,” the two companies said in a statement. Guggenheim SpinOff (NYSEArca: CSD) is up nearly 1.5% so far today; AOL is 4.1% of the ETF.
- Shares of biomedical testing group Beckman Coulter Inc. (NYSE: BEC) jumped almost 10% in early trading after diversified manufacturing and technology company Danaher Corp. (NYSE: DHR) said it would pay $83.50 a share for Beckman, or $6.8 billion in cash, including debt. That represents a 45% premium to Beckman’s closing price on Dec. 9 before rumors of the deal were in the market. iShares Dow Jones U.S. Medical Devices (NYSEArca: IHI) is up almost 1.5% today; Beckman Coulter is 3%.
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. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.