Tech Stocks Lead Markets Higher
Tech Stocks Lead Markets Higher
NEW YORK (AP) -- U.S. stocks are mostly higher Thursday afternoon as a handful of companies jump on deal news. Facebook and PayPal are leading technology stocks higher after they announced strong first-quarter results. The U.S. government said the economy slowed a little more than expected in the first three months of this year.
KEEPING SCORE: The Dow Jones industrial average lost 27 points, or 0.2 percent, to 18,014 as of 12:14 p.m. Eastern time. The Standard & Poor's 500 index added 3 points, or 0.1 percent, to 2,098. The Nasdaq composite, which has fallen for five days in a row, regained 20 points, or 0.4 percent, to 4,883 as tech stocks rose.
ECONOMY SLOWS: The U.S. economy grew a bit less than expected in the first quarter. The government said gross domestic product increased just 0.5 percent as consumer spending slowed down, exports kept falling, and business investment plunged. That's the weakest result in two years, but experts think the economy will bounce back in the current quarter.
DEALS, DEALS, DEALS: Most of the day's big deals were in health care. In the largest, medical device maker Abbott Laboratories said it will buy St. Jude Medical for $19.3 billion, combining Abbott's heart devices, heart valve products and infant formula business with St. Jude's heart failure and heart rhythm device products.
The deal valued St. Jude stock at $46.75 per share, and it rocketed $16.96, or 27.4 percent, to $78.91 while Abbott fell $2.47, or 5.6 percent, to $41.13.
French drugmaker Sanofi went public with an offer to buy cancer drug maker Medivation for $9.3 billion, or $52.50 per share. Medivation, the maker of the prostate cancer medication Xtandi, added $4.46, or 8.6 percent, to $56.51. U.S.-traded Sanofi stock slid 59 cents, or 1.4 percent, to $43.03.
Drugmaker AbbVie said it will buy privately-held Stemcentrx for $5.8 billion. Stemcentrx is developing a drug that uses stem cells to treat small cell lung cancer. AbbVie stock dipped 5 cents to $60.65.
DREAM COME TRUE: Comcast's NBCUniversal unit will buy DreamWorks Animation, the movie studio behind the "Kung Fu Panda" and "How to Train Your Dragon" franchises, for $3.55 billion. The deal values DreamWorks at $41 a share, and the stock, which jumped 19 percent Wednesday, rose another $7.78, or 24.2 percent, to $39.99. Comcast gained 54 cents to $61.84.
EXPANDING WAISTLINE: Hanesbrands, a maker of underwear, t-shirts and socks, said it will buy the biggest maker of underwear in Australia. The company said its offer values Pacific Brands Ltd. at $800 million. Hanesbrands has also made a series of deals to give it more control of the Champion brand overseas. The stock jumped $2.35, or 8.4 percent, to $30.14.
TECH RISING: Facebook reached an all-time high after first-quarter profit nearly tripled. Revenue was also better than expected. The stock climbed $9.99, or 9.2 percent, to $18.88. Online payments company PayPal gained $1.03, or 2.6 percent, to $41.04 after its net income and revenue surpassed estimates.
GNC-YA: Nutritional supplement company GNC Holdings plunged after it reported weak first-quarter results, including lower vitamin sales. The company also said it will sell 84 stores to a franchise operator. GNC stock lost $10.55, or 29.6 percent, to $25.05.
OVERSEAS: European stock indexes were mixed. Germany's DAX was 0.2 percent higher while the CAC 40 in France and the FTSE 100 index in Britain were little changed. Asian stocks mostly fell as investors were disappointed by the Bank of Japan's decision not to add to its huge economic stimulus program. The Nikkei 225, Japan's main stock index, tumbled 3.6 percent. South Korea's Kospi shed 0.7 percent and Hong Kong's Hang Seng index eked out a 0.1 percent gain.
ENERGY: Benchmark U.S. crude oil, which is at its highest prices in almost six months, rose 32 cents to $45.65 a barrel in New York. Brent crude, the international standard, picked up 13 cents to $47.21 a barrel in London.
METALS: The price of gold rose $16.20, or 1.3 percent, to $1,266.60 an ounce. Silver gained 25 cents, or 1.4 percent, to $17.54 an ounce.
BONDS, CURRENCIES: Bond prices dipped slightly after a big gain on Wednesday. The yield on the 10-year U.S. Treasury note rose to 1.86 percent from 1.85 percent. The dollar sank to 108.55 yen from 111.34 yen and the euro rose to $1.1328 from $1.1323.