The S&P 500 snapped a two-week losing streak last week, rising 3.2% to 1,069.3, despite a rise in the unemployment rate to a 26-year high. A rosy outlook from Cisco combined with a strong productivity number, positive retail sales in October, and positive data on the manufacturing sector to pull the market higher during the course of the week.
Pops and drops
Here are the five biggest S&P 500 upticks and five biggest S&P 500 drops of last week (measured Friday close to Friday close):
Winners on the week:
|
Company |
Percentage Gain on the Week |
|---|---|
|
Black & Decker |
29.3% |
|
Burlington Northern |
29.1% |
|
IMS Health |
27.3% |
|
JDS Uniphase |
15.6% |
|
International Game Technology |
13.1% |
Source: Capital IQ, a division of Standard & Poor's.
Losers on the week:
|
Company |
Percentage Loss on the Week |
|---|---|
|
CVS Caremark |
(15.6%) |
|
Denbury Resources |
(12.0%) |
|
Whole Foods |
(11.9%) |
|
Molson Coors |
(10.5%) |
|
Sunoco |
(8.4%) |
Source: Capital IQ, a division of Standard & Poor's.
Let’s take a closer look
It was Merger Mania last week as both Black & Decker and Burlington Northern agreed to be acquired. Black & Decker, which makes power tools, was acquired by hand tool company Stanley Works in a $4.5 billion all-stock deal, as both companies try to rein in their costs going forward.
Perhaps the biggest chatter last week was stirred by Warren Buffett’s Berkshire Hathaway, which purchased a remaining stake in Burlington Northern Santa Fe. Buffett, already a partial owner of the railroad, bought the remaining 77% stake in the company for a 31% premium of $100 per share. Buffett has called the deal a bet on the long-term health of the U.S. economy. He also favors railroads because they are insulated from overseas competition, unlike the auto and manufacturing industries.
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