US stocks rise as tech and machinery companies lead the way
Posted September 19
NEW YORK — U.S. stocks are making solid gains in Monday morning trading as machinery and technology companies move higher. Energy companies are up with the price of oil.
KEEPING SCORE: The Dow Jones industrial average jumped 114 points, or 0.6 percent, to 18,238 as of 10:25 a.m. Eastern time. The Standard & Poor's 500 index rose 12 points, or 0.6 percent, to 2,151. The Nasdaq composite added 28 points, or 0.5 percent, to 5,272.
JACKPOT: Isle of Capri Casinos agreed to be bought by Eldorado Resorts for $23 per share, or $950 million in cash and stock. Combined, the companies own 21 casinos and race tracks. Isle of Capri stock jumped $5.35, or 31.6 percent, to $22.28 while Eldorado Resorts stock rose 5 cents to $14.30.
DEAL IN FOCUS: Johnson & Johnson agreed to buy Abbott Laboratories' eye health business Friday for around $4.3 billion in cash. Abbott Medical Optics makes lasers and other equipment used for cataract surgeries and laser vision correction procedures as well as eye drops and cleaners for contact lenses. It had about $1.1 billion in revenue last year. Abbott stock edged up 41 cents, or 1 percent, to $42.28 and Johnson & Johnson gained 32 cents to $118.57.
OIL: Benchmark U.S. crude added $1, or 2.3 percent, to $44 a barrel in New York. Brent crude, used to price international oils, rose 92 cents, or 2 percent, to $46.66 a barrel in London. Halliburton climbed 63 cents, or 1.5 percent, to $41.67 and Schlumberger added 88 cents, or 1.2 percent, to $77.21.
EARLY LEADERS: General Electric gained 27 cents to $29.95 to lead industrial companies, while Honeywell climbed $1.39, or 1.2 percent, to $115.65 and power management company Eaton rose $1.43, or 2.3 percent, to $63.78. Tech companies also rose. Microsoft picked up 47 cents to $57.72 and IBM added $2.32, or 1.5 percent, to $156.16.
SAREPTA SURGING: Sarepta Therapeutics soared $18.24, or 64.8 percent, to $46.39 after the Food and Drug Administration approved its drug Exondys 51, a treatment for a type of muscular dystrophy. The drug treats Duchenne muscular dystrophy, a rare and deadly inherited disease that causes muscle weakness and eventually the loss of all basic movement. It usually causes death by age 25. The FDA extended its review in May and Sarepta stock has made some big moves in recent months as analysts wondered if the drug would win approval.
BONDS: Bond prices were little changed. The yield on the 10-year U.S. Treasury note remained at 1.69 percent.
CURRENCIES: The dollar fell to 101.66 yen from 102.42 yen. The euro rose to $1.1178 from $1.1151.
OVERSEAS: The FTSE 100 index of leading British shares was up 1.5 percent and the CAC-40 in France rose 1.5 percent. Germany's DAX was 0.8 percent higher. South Korea's Kospi added 0.8 percent and Hong Kong's Hang Seng index rose 0.9 percent. Trading in Japan was closed for a holiday. Australia's stock market suspended trading after a couple of hours due to technical glitches. The S&P/ASX 200 finished little changed.
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at http://bigstory.ap.org/journalist/marley-jay