Wednesday, November 11th, 2009
Market Wrap-Up for November 11, 2009
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Toll Brothers, Inc. (TOL), Nucryst Pharmaceutical Corp. (NCST), and Semiconductor Manufacturing International (SMI) are three featured story stocks as the market closed higher on the day.
Featured Story Stocks
- Toll Brothers, Inc. [[TOL]] – Shares of the residential homebuilders surged more than 18 percent after reporting fiscal fourth quarter results that beat expectations. The company’s net contracts of approximately 765 units and $430.8 million increased by 42% and 62%, respectively. Meanwhile, the company’s fourth quarter cancellation rate came in at 3.5% for backlogged orders, which is the lowest level in three years.
- Nucryst Pharmaceuticals Corp. [[NCST]] – Shares of the pharmaceutical company focused on infection and inflammation rose more than 70 percent after announcing that it would sell itself to Smith & Nephew plc. [[SNN]] for $21 million plus the value of working capital. Certain to certain assumptions, this price equates to a valuation range of between $1.72 and $1.82 per share, according to KPMG Corporate Finance.
- Semiconductor Manufacturing International [[SMI]] – Shares of the semiconductor firm rose sharply higher after it entered into a settlement agreement with Taiwan Semiconductor Manufacturing Company Ltd. to resolve all pending lawsuits between the parties, including legal action filed by TSCM in California for which a verdict was returned by the jury against SMIC on November 4th.
Market Summary
U.S. markets moved higher amid positive comments from the Federal Reserve suggesting that rates would remain low for some time, but gains were somewhat limited by strength in the dollar. The Dow Jones rose 53 points, the S&P 500 rose 6.9 points, and the Nasdaq rose 11.5 points to close out the day on a sharply higher note.
Commodities ended the U.S. session mixed, affected by both a strengthening dollar and positive fundamentals in some sectors. Light crude oil rose $0.23 to $79.28 per barrel, unleaded gas rose $0.02 to $1.99 per gallon, gold prices rose $12 to $1,114.50 per ounce, and silver prices rose $0.32 to $17.55 per ounce.
Overseas markets ended the day largely higher on continued global optimism. The DJ Stoxx index moved up 0.83%, Britain’s FTSE 100 ended up 0.69%, France’s CAC ended up 0.76%, and Canada’s TSE ended up 0.08%. Meanwhile, Asian stocks also appear to be set for a higher open amid continued optimism about a global economic recovery.
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-- Written by David Breen
