US Stocks Rising for the Second Day in a Row; ADT Surges
NEW YORK, N.Y. (AP) — Stocks are climbing Tuesday morning and building on their gains from late last week. Home security company ADT is surging after it agreed to be bought by an investment company, and strong quarterly reports are boosting companies including Hormel Foods and Restaurant Brands International.
KEEPING SCORE: The Dow Jones industrial average rose 90 points, or 0.6 percent, to 16,063 as of 10:25 a.m. Eastern time. The Standard & Poor’s 500 index gained 15 points, or 0.8 percent, to 1,879. The Nasdaq composite climbed 57 points, or 1.3 percent, to 4,394. U.S. markets were closed Monday for the Presidents Day holiday.
LOCKED UP: Home security services company ADT surged after it accepted an offer from investment company Apollo Global Management worth $42 per share, or $6.94 billion. ADT has 40 days to seek other offers. Its stock rose $13.53, or 50.4 percent, to $40.40. Apollo Global added 16 cents to $13.56.
GOOD EATS: Hormel Foods, the maker of Spam and Dinty Moore stew, among other foods, posted a stronger-than-expected quarterly profit and raised its forecast for the year. The stock climbed $2.24, or 5.4 percent, to $43.78.
CHOW DOWN: Restaurant Brands, the parent company of Burger King and Tim Hortons, jumped $1.43, or 4.5 percent, to $33.44 after it reported its fourth-quarter results.
GROUPON ROCKETS: Online deals site Groupon gained $1, or 34.6 percent, to $3.90 after Chinese e-commerce site Alibaba disclosed it had taken a 5.6-percent stake in the company. Groupon stock jumped 29 percent Friday after the company reported its fourth-quarter results, but the stock is still in a big slump over the last year.
CHINA CURRENCY: The yuan was near its highest level in 2016 after China’s central bank guided the currency higher. That’s a sign a positive sign for the economy. Weakness in the yuan this year has caused investors to worry that the Chinese economy is in worse shape than they had thought.
New yuan loans also jumped 71 percent in January, according to Xinhua, China’s official news agency. That suggests demand is strong.
STIMULUS HOPES: Japan’s economy contracted 1.4 percent in the fourth quarter, a worse result than expected. That shows that lavish stimulus policies didn’t counteract weak consumer demand and exports, but investors hope that means Japan’s central bank will take further steps to stimulate the economy.
Japan’s Nikkei added 0.2 percent after soaring 7.2 percent the day before, its biggest daily gain since September. South Korea’s Kospi rose 1.4 percent and Hong Kong’s Hang Seng advanced 1.1 percent.
EUROPE STOCKS: France’s CAC 40 slipped 0.2 percent and Germany’s DAX lost 1 percent. Britain’s FTSE 100 rose 0.4 percent.
OIL TALK: The price of U.S. oil retreated after a big gain Friday. On Tuesday Russia, Saudi Arabia, Qatar and Venezuela said they agreed to freeze output, but only if other OPEC nations do so, too. Analysts say Iran probably won’t agree to that, as it looks to ramp up production following its period of sanctions. Benchmark U.S. crude lost 47 cents, or 1.6 percent, to $28.97 a barrel in New York. It jumped 12 percent Friday, its biggest gain in years.
Brent crude, a benchmark for international oils, gave up 51 cents, or 1.5 percent, to $32.88 a barrel in London. The price of Brent was little changed on Monday.
BONDS, CURRENCIES: The yield on the 10-year Treasury note rose to 1.77 percent from 1.75 percent Friday. The dollar rose to 113.88 yen from 113.26 yen late Friday. The euro slipped to $1.113 from $1.126 on Friday.