The Clinton Herald, Clinton, Iowa

Top News

September 10, 2013

Stocks rise on mergers, homebuilder outlook

The stock market got a boost on Monday from mergers, homes, and phones.

Two big deals suggested growing confidence in the economy: Luxury retailer Neiman Marcus was sold for $6 billion, and Koch Industries bought electronics component maker Molex for $7.2 billion.

Apple rose. It’s expected to announce a new iPhone today.

Homebuilding stocks were some of the biggest gainers in the Standard & Poor’s 500 index after Hovnavian Enterprises said home prices are rising and its backlog jumped almost 27 percent from a year earlier.

Hovnanian rose 13 cents, or 2.6 percent, to $5.17. PulteGroup, D.R. Horton and Lennar also gained. Homebuilder MDC Holdings rose $1.90, or 6.9 percent, to $29.55 after an upgrade from a Citi analyst.

Homebuilding stocks have had a volatile year. Investors have been bullish because the housing market is recovering, but worried that rising interest rates make mortgages more expensive for home buyers.

Shortly before the closing bell, the Dow Jones industrial average was up 145 points, or 1 percent, to 15,068. The Dow hit an all-time high of 15,658 on Aug. 2. But worries about Syria and rising interest rates pushed stocks down since then. The last time the Dow closed above 15,000 was Aug. 23.

The S&P 500 index rose 16 points, or 1 percent, to 1,671. The Nasdaq composite rose 46 points, or 1.3 percent, to 3,706.

All 10 industry groups in the S&P 500 rose. The index rose for the fifth day in a row, the longest since eight days of gains in July.

Two things about the Koch-Molex deal grabbed investors’ attention: Its components show up in a wide variety of products, including housing and autos, so Koch’s interest suggests that it sees broad economic improvement. Also, Koch is paying a large premium for Molex.

1
Text Only
Top News
  • Celebrity quack moms are a terrible influence on everyday parents

    On April 15, the actress Alicia Silverstone released a book called "The Kind Mama: A Simple Guide to Supercharged Fertility, a Radiant Pregnancy, a Sweeter Birth, and a Healthier, More Beautiful Beginning." It's chock-full of attachment parenting lessons and dangerous misinformation.

    April 24, 2014

  • Lindley, Tom.jpg What will happen in NFL draft? No one really knows

    Despite the hours spent interviewing coaches, watching film and developing well-reasoned mock draft lists, the truth about the 2014 NFL draft remains a mystery, well-guarded by teams that have nothing to gain by publicly sharing their innermost thoughts.

    April 24, 2014 1 Photo

  • American sunscreens need an upgrade

    The last time a new sunscreen ingredient came on the U.S. market, the Y2K bug was threatening to destroy our way of life. Intel had just introduced the Pentium III processor, featuring an amazing 500 MHz of computing power.

    April 24, 2014

  • 20140424-AMX-COFFEE24.jpg Coffee growers' prayers for rain met with threat of deluge

    Brazil's drought made arabica coffee this year's best-performing commodity. Now, farmers are facing a downpour that is once more threatening crops.

    April 24, 2014 1 Photo

  • Iowa man accused of torturing, killing bald eagle

    An Iowa man has been charged with torturing and killing a bald eagle.

    A federal grand jury in Des Moines returned an indictment Wednesday against Jason John Thomas.

    April 24, 2014

  • Affirmative action ruling challenges colleges seeking diversity

    The U.S. Supreme Court's support of Michigan's ban on race-based affirmative action in university admissions may spur colleges to find new ways to achieve diversity without using racial preferences.

    April 24, 2014

  • 10 Things to Know for Today

    Your daily look at late-breaking news, upcoming events and the stories that will be talked about today:

    April 24, 2014

  • 4-23-14 Northey Burkens committed to ag education CLINTON -- As the Iowa Secretary of Agriculture, Bill Northey said his department doesn't hand out the Good Farm Neighbor Award arbitrarily. Only 10 acknowledgements are bestowed each year. On Wednesday, the honor went to a worthy family in Clinton C

    April 24, 2014 2 Photos

  • World Book Night 1 Clinton Public Library hosts largest World Book Night event in the country

    CLINTON -- With more than 21 titles and 800 copies to give away, what reader wouldn't adore an event like World Book Night? Organizers at the Clinton Public Library wondered the same Wednesday, and were pleased with turnout for the third annual event

    April 24, 2014 1 Photo

  • Amid Russian warning, Ukraine's in a security bind

    Ukraine's highly publicized goal to recapture police stations and government buildings seized by pro-Russia forces in the east produced little action on the ground Wednesday but ignited foreboding words from Moscow.

    Russian Foreign Minister Sergey Lavrov warned that Russia would mount a firm response if its citizens or interests come under attack in Ukraine. Although he did not specifically say Russia would launch a military attack, his comments bolstered wide concern that Russia could use any violence in eastern Ukraine as a pretext for sending in troops.

    April 23, 2014

AP Video