A Bid For Dow Jones Sends Industrials to a Record
Wednesday, May 2, 2007
NEW YORK, May 1 -- Investors resumed their buying spree on Wall Street on Tuesday, driving stocks higher after a bid for media company Dow Jones revived enthusiasm about takeover activity.
The Dow Jones industrial average reached another record close, as big-company stocks benefited from the turnaround. The Dow rose 73.23, or 0.56 percent, to 13,136.14, after dropping to 13,041.30 in earlier trading. The Standard & Poor's 500-stock index rose 3.93, or 0.27 percent, to 1486.30, and the Nasdaq composite index rose 6.44, or 0.26 percent, to 2531.53.
Early in the session, stocks wavered on mixed economic data that showed strength in manufacturing but a wilting housing market and weak car sales. After April's big advance, investors were wary that the economy would not justify another move higher on Wall Street.
But the caution dissipated after Dow Jones, which publishes the Wall Street Journal, confirmed that it had received an unsolicited bid from Rupert Murdoch's News Corp. to buy the company for $5 billion, or $60 a share.
"The market kind of just took off from there," said Todd Leone, managing director of equity trading at Cowen & Co. News of the bid boosted media companies and publishers in particular but also encouraged buying in other sectors, as it reaffirmed the ongoing trend of takeover activity.
Adding to the takeover buzz was a report that Microsoft is considering buying online advertising company 24/7 Real Media.
Ford rose a penny to $8.05; DaimlerChrysler rose 48 cents to $80.99; Toyota's U.S. shares rose 11 cents to $121.15; and GM rose 23 cents to $31.46.
Dow Jones surged $19.87, to $56.20, after the company confirmed it was a takeover target.
News Corp., which owns the Fox broadcast network and many other media properties, fell $1.01, to $22.99.
New York Times Co. rose $1.18, to $24.58, on the offer for Dow Jones.
Microsoft rose 46 cents, to $30.40.
Procter & Gamble fell $1.44, to $62.96, after the Dow component said profit rose 14 percent.