Wall Street Opens Higher on Mergers
Wall Street opened higher this morning following a raft of mergers, which gave traders a sense of optimism about the economy following a tough week.
In the first 15 minutes of trading, the Dow is up 45 points, or about half of 1 percent.
The S&P 500 is up six-tenths of 1 percent, and the tech-heavy Nasdaq is up slightly more.
Some of the key pre-market mergers today:
-- Xerox is buying Affiliated Computer Services for $6.4 billion, moving the copier giant into data management and outsourcing in a diversification play.
-- Johnson & Johnson is paying $444 million for an 18 percent stake in Crucell, a Dutch vaccine maker.
Mergers are typically a sign of a healthier market; they had ground to a halt over the past year. They also, however, are a sign of a cheap market. Companies with cash are able to buy companies whose values have gone down during the recession, much like housing speculators buy foreclosed homes.
-- Frank Ahrens
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September 28, 2009; 9:43 AM ET
Categories: The Ticker | Tags: Dow Jones, mergers, nasdaq, s&p 500
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