US Market Updates
11/3/2009 12:50 PM ET
(RTTNews) -
Stocks have shown a strong move to the upside in recent trading on Tuesday, with the major averages climbing back near the unchanged line. Nonetheless, buying interest has remained somewhat subdued amid continued uncertainty about the outlook for the economy.
The markets came under pressure earlier in the session as profit taking largely overwhelmed positive news on factory orders and some isolated gains on the heels of two significant M & A announcements.
Earlier in the session, the Commerce Department reported that orders for manufactured goods increased by a little more than expected in the month of September, with the report also showing a notable increase in shipments.
On the M&A front, Berkshire Hathaway (BRKa) entered an agreement to acquire the shares of Burlington Northern Santa Fe (BNI) it does not already own for $100 per share, while Stanley Works (SWK) and Black & Decker (BDK) also announced a merger agreement.
The transactions resulted in some upbeat sentiment that M&A activity may be picking up, helping to limit the pullback.
In other news, the Federal Open Market Committee has begun its two-day rate setting meeting today and is scheduled to make an announcement regarding the near-term direction of monetary policy at 2:15 p.m. ET on Wednesday.
After its two-day meeting in September, the Federal Open Market Committee announced that it would maintain the target rate for the federal funds rate at 0 to 0.25%, saying it continued to believe that economic conditions warrant exceptionally low rates for an extended period.
The major averages have ticked back to the downside in the past few minutes, although they remain well off their lows for the session. The Dow is currently down 26.38 at 9,763.06, the Nasdaq is down 3.19 at 2,046.01 and the S&P 500 is down 0.69 at 1,042.19.
Stocks In The News
Swiss banking giant UBS AG (UBS) is moving notably lower in early afternoon trading after reporting a loss for the third quarter, reflecting hefty charges mainly related to financial liabilities. The stock is down by 4.2 percent, setting a two and a half month intraday low.
Mastercard Inc. (MA) is also moving lower despite reporting adjusted third-quarter earnings of $3.48 per share on revenues of $1.36 billion, which topped expectations. Shares are down by 3.6 percent, slipping to their lowest price in three and a half weeks.
On the other hand, Diedrich Coffee Inc. (DDRX) is on the rise after entering an agreement to be acquired by Peet's Coffee & Tea (PEET) for $26 per share. Diedrich has jumped by 27 percent, bouncing off of the one-month closing low set on Monday.
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