Archive for June, 2013

Sprint May Be Off the Table, but Dish’s Deal Appetite May Remain

Charles W. Ergen is regarded as one of the wiliest negotiators in the business world. But in a little over a week, Mr. Ergen, chairman of the Dish Network, has been dealt two tough hands, one at Sprint Nextel and the other at Clearwire.

Both may pose problems for his apparent dream of transforming Dish from a satellite television company into a bigger wireless services giant. That doesn’t mean that Mr. Ergen is walking away from deal-making altogether.

Dish has clearly signaled that it will walk away from Sprint, after SoftBank of Japan raised its takeover offer for the cellphone service provider to $21.6 billion. The company said on Friday that it would pay back $2.5 billion in recently issued bonds meant to back a Sprint takeover.

And though Dish seemed ready to buy a significant stake in Clearwire as recently as last week with a bid of $4.40 a share, Sprint’s revised offer of $5 a share on Thursday made that prospect seem dicier. With the newly sweetened proposal — Sprint’s third bid since last fall — roughly 45 percent of Clearwire’s independently held shares are expected to be tied to that approach.

Dish hasn’t commented yet on the latest counterpunch by its rival. But several analysts expect Sprint’s offer to prevail.

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Dow suffers first 3-day drop this year

Stocks fell for a third consecutive session Wednesday, resulting in the first 3-day drop in the Dow Jones industrial average this year.

Markets have been volatile as of late as investors are increasingly worried about when the Federal Reserve and other central banks will begin pulling back from their economic stimulus policies.

The Dow fell 127 points, or 0.8%, to 14,995, according to preliminary calculations. The Standard & Poor’s 500 index dropped 13 points, or 0.8% to 1,163, and the Nasdaq composite index fell 37, or 1.1% to 3,400.

The Dow has fallen more than 300 points since the start of the week. The S&P has given up 30 points. The last 3-session Dow drop was at the end of 2012 when it suffered a 5-day down streak from December 21-28.

Stocks tumbled in a global sell-off Tuesday as renewed concerns about central banks easing off their efforts to support the global economy weighed on markets worldwide. The Dow fell 0.8% to 15,120.86, the S&P 500 dropped 1.0% to 1,626.15 and the Nasdaq composite index declined 1.1% to 3,436.95.

TUESDAY: Volatile stocks tumble in global sell-off

WHAT TO WATCH: Despite bond losses, ‘Great Rotation’ still on hold

With no major economic news or corporate earnings coming out, traders focused on when and by how much central banks will pull back.

“There’s nothing concrete out there to turn us around today,” Russell Croft, co-portfolio manager at the Croft Value Fund in Baltimore. “So naturally enough, people are back to thinking about the Fed.”

The yield on the 10-year Treasury note edged up to 2.23% from 2.18% late Tuesday.

Oil prices rose above $96 a barrel before pulling back. Benchmark crude for July delivery rose 47 cents to $95.85 per barrel in electronic trading on the New York Mercantile Exchange. In the prior session, the contract fell 39 cents to settle at $95.38.

Asian stocks fell for a second day Wednesday amid concern about a lack of new Japanese moves to calm bond markets and uncertainty about the outlook for U.S. monetary policy. Tokyo’s Nikkei 225, the regional heavyweight, shed 28.30, or 0.2%, to 13,289.32.

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Stocks lower for third straight day

Stocks were lower again Thursday following two days of losses that have investors concerned we are heading for a correction.

The Dow Jones industrial average was down 77 points, or 0.5% at midday. The Dow dropped 217 points the day before. The index of 30 big-name stocks could be headed for its first three-day losing streak this year.

The Standard & Poor’s 500 index was down 6 points, or 0.4%. The Nasdaq composite fell 14 points, or 0.4%.

The focus on Wall Street has now shifted from how high stocks will climb to whether the market is on track for its first drop of 5% or more since November 2012. The broad market hasn’t suffered a more severe “correction,” commonly defined as a drop of 10% or more, since the fall of 2011.

OUTLOOK: As stock mojo wanes, more calls for pullback

Earlier in the day, stock futures had rocketed 3% for a minute or two Thursday morning just ahead of the 8:30 a.m. release of a weekly report on claims for unemployment benefits.

Just as quickly, stocks fell back as traders realized it was a false report. The Labor Department’s report was released as scheduled. The government said weekly claims for unemployment benefits fell modestly the week ended May 30.

Wall Street sank Wednesday. The Dow fell 1.4% to 14,960.59. The S&P 500 declined 1.4% to close at 1,608.90. The Nasdaq composite index was off 1.3% to 3,401.48. At the close Wednesday, the S&P 500 was 3.6% lower from it’s record close on May 21 — eclipsing the 3.5% drop it suffered in April.

WEDNESDAY: Dow, S&P 500 dive on rising interest rates

The European Central Bank left its benchmark interest rate at a record low of 0.5% on Thursday even though there’s still a recession in the 17 countries that use the euro. The Stoxx Europe 600 index was trading lower — down 1.1%. The major indexes in the U.K., France and Germany were all down more than 1%

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