M & A
All of the markets went sideways today….
In the news today….
Consumer Confidence – fell today, driving stocks down from the start. The experts were expecting an increase in confidence, but a decrease actually happened. Not good.
Industrial Activity – in the midwest fell last month, and the Dallas area looks like it is bottoming. Normally, you just see the reports showing growth. I wonder how this report got let out.
Home Prices – have risen 8% (annualized) for the three month period ending July according to Case-Schiller. The interpretation that they are giving this statistic is that home prices have bottomed. They are not saying that prices will go up every month. With the overhang of foreclosures coming down the pike, it will be interesting to see what home prices do in the future too.
M&A Activity – is heating up in the US. It stands at about $200B worth of purchases this month, following $125B last month. What lessons can we learn from this activity? Well, first of all, these companies see real bargains out there, and they are positioning themselves for a competitive future. Some of these deals require big borrowing, so there is some big risk coming along for the ride. These companies are locking in the current low interest rates, and getting to pay them off with cheaper (inflated) money in the future. Therein lies the lesson for the individuals out there.
Here are the last numbers for today (about 40 min before closing):
Dow Jones 30 Industrial – 9742 (down 47 points)
10 Year Treasury Bond – 3.29% (down 0.01%)
Euro – $1.4572
Gold – $992 (down $1)
Oil – $66.62 (down $0.22)
Gasoline – $1.63 (down $0.01)
It’s nice to see someone who actually has an education posting content on the web.