With Verizon Rumors in the Air, Dow Sets 30th Record Close This Year
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Tuesday, July 17, 2007; Page D05
NEW YORK, July 16 -- The Dow Jones industrial average hit a new record close Monday as news of a potential telecom deal involving Verizon nudged the average closer to 14,000. Overall, stocks were mixed as investors contemplated the market's huge gains last week.
The Dow rose 43.73, or 0.31 percent, to 13,950.98 -- its 30th record close since the start of the year. It also set a trading high, hitting 13,989.11. The Standard & Poor's 500-stock index slipped 2.98, or 0.19 percent, to 1549.52 but set a fresh trading high of 1555.90. The Nasdaq composite index fell 9.67, or 0.36 percent, to 2697.33.
Although Vodafone Group denied a report by the Financial Times that it is weighing a $160 billion bid for Verizon Communications, the notion of a deal injected Wall Street with optimism and helped stocks mostly hold last week's sizable gains.
"I think just the idea of the number floated -- $160 billion -- gets the juices running in the market again even after this big move," said Greg Church, chairman of Church Capital Management in Yardley, Pa., referring to last week's gains. "It would be the biggest deal ever. People want to be at the party and they don't want miss it."
Buyout news was responsible for moving a number of stocks Monday. In a much more modest but confirmed deal, restaurant chain operator IHOP said it would acquire Applebee's International for about $1.9 billion. And Con-way jumped after the trucking company agreed to acquire Contract Freighters for $750 million.
Movers
Verizon rose $1.00, to $42.76.
Vodafone fell 37 cents, to $33.15.
Applebee's rose 53 cents, to $24.91.
IHOP jumped $4.99, to $61.24.
Con-way gained $3.00, to $56.06.
McDonald's rose 19 cents, to $52.10, after predicting that its second-quarter earnings before charges will exceed Wall Street's forecasts.
Mattel rose 67 cents, to $27.20, after reporting that its second-quarter profit rose 15 percent, as increased global sales of its Barbie dolls and Hot Wheels toy cars made up for soft sales in the United States.
Ford fell 11 cents, to $8.87, after denying reports that it is in talks to sell its Volvo division.
