Stephen Bernard, AP Business Writer
Stocks edge lower as investors pocket profits
Stocks slip to kick off week; Traders review flurry of new dealmaking
NEW YORK (AP) — Stocks took a pause from their big September rally on Monday.
With no major economic reports to drive trading, investors focused instead on individual stocks after a fresh round of corporate dealmaking in the airline, consumer products and retailing industries.
The Dow Jones industrial average fell 6 points in late morning trading. The Dow entered Monday having risen each of the past four weeks, its longest winning streak since eight consecutive weekly gains ended in late April when stocks hit their highest levels of the year.
In deal news, consumer products giant Unilever NV agreed to buy beauty products maker Alberto Culver Co. for $3.7 billion. Southwest Airlines Co. will purchase AirTran Holdings Inc. for about $1.4 billion. Wal-Mart Stores Inc. proposed to buy South African consumer goods distributor Massmart Holdings Ltd. for about $4.25 billion.
Michael Sansoterra, portfolio manager of the RidgeWorth Large Cap Growth Fund, said the latest deals are sign companies are confident economic growth will pick up in the coming quarters. Acquisition activity has been booming this month as companies become more willing to take large cash reserves built up during the recession and invest it.
Yesterday’s Top Performing Small Cap Stock:
General Automotive Co. (OTCBB: GNAU)
General Automotive Co. was a SmallCapVoice.com top performer closing up over 25% on trading volume of 6,120 shares.
General Automotive Company (OTCBB:GNAU), a North American provider of aftermarket parts and advanced technology for the automotive industry, recently announced a joint venture agreement with Taichi Automotive of China.
ORLANDO, Fla., Sept. 24, 2010 (GLOBE NEWSWIRE) — General Automotive Company (OTCBB:GNAU), a North American provider of aftermarket parts and advanced technology for the automotive industry, today announced a joint venture agreement with Taichi Automotive of China.
General Automotive continues to expand its manufacturing and supplier base in China with this partnership. Taichi currently has presence across Asia including the cities of Shanghai, Beijing, Hong Kong, Taipei and Weihai. Taichi currently works with some of the largest automotive parts companies within China.
The General Automotive-Taichi Partnership in China will have a strong focus in the development and sourcing of quality automotive parts while cultivating new manufacturing and distribution opportunities. With a growing client base in its U.S. and Export markets, the China operation will not only help support existing manufacturing relationships which insure quality and on time delivery but also enhance logistical support.
Stocks are higher following upbeat earnings reports and a fresh round of corporate acquisitions
European markets also rose following new plans by European Union leaders to push Greece to contain its growing debt problems. European leaders on Monday said Greece will have another month to come up with a plan to reduce its deficit
Kraft Foods Inc. and apparel retailer Abercrombie & Fitch reported earnings that beat expectations, while drugmaker Merck & Co. said its profit jumped after buying its longtime partner Schering-Plough Corp.
Stocks are sharply lower after China said it would increase bank reserve levels
Chinese regulators are trying to contain rapid economic growth to prevent speculative investment bubbles there. The surprising move comes a day after a tame inflation report raised hopes that China wouldn’t have to further tighten its monetary policy.
Concerns about debt problems in European countries like Greece, Spain and Portugal, as well as President Barack Obama’s push for new regulations on banks also weighed on the market and increased volatility in recent weeks.
On Thursday, European Union leaders pledged to provide Greece with support as it tries to bring its debt problems under control. There has been concern that debt problems there could spread and destabilize Europe’s common currency, the euro.
Stocks are lower on continued worries about the economy and concerns about European debt issues
The market’s major indexes have traded erratically lately as investors try to determine whether a global economic recovery is sustainable. Traders are still grappling with concerns that some European countries, such as Greece, Portugal and Spain, might not be able to handle their mounting debt. Stocks have also been hurt by China’s plans to limit economic growth and the Obama administration’s proposed rules to restrict trading by large financial institutions.
All of those concerns have investors on edge about whether the global economy can recover strongly in the coming months. Stocks had rallied for 10 months on hopes of a rebound after hitting 12-year lows last March.
ORLANDO, Fla., Feb. 8, 2010 (GLOBE NEWSWIRE) — General Automotive Company (OTCBB:GNAU), a North American provider of aftermarket parts and advanced technology for the automotive industry, today announces the opening of a Los Angeles office of OE Source. OE Source, a wholly owned subsidiary of General Automotive, opened the new LA office to support the expansion of its new export division. The new office will be led by Brandon Cser, the company’s newest National Sales Executive.