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U.S. stocks mixed as Exxon profit surges; Dow Jones up 0.07%

Published 01/31/2011, 10:03 AM
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Investing.com – U.S. stocks were mixed after the open on Monday, as strong corporate earnings results from Exxon and increased merger and acquisition boosted sentiment, but gains were limited amid ongoing political turmoil in Egypt.

During early U.S. trade, the Dow Jones Industrial Average gained 0.07%, the S&P 500 index climbed 0.18%, while the Nasdaq Composite index was down 0.31%.

Earlier in the day, ratings agency Moody’s downgraded Egypt’s government bond ratings, as escalating political tensions in Egypt threatened President Hosni Mubarak’s 30-year rule.     

Meanwhile, shares in oil and gas giant Exxon-Mobil added 0.96% after it reported a 53% jump in fourth quarter earnings to USD9.25 billion, citing higher oil prices and improved refining margins. It was the richest quarterly profit for the oil major since the third quarter of 2008, when it earned USD14.83 billion.

Elsewhere, shares in the fourth largest U.S. coal producer Massey Energy Company soared 11.88% after it agreed to be acquired by rival Alpha Natural Resources for approximately USD8.5 billion.

Shares in warehouse operator AMB Property climbed 1.88% after it announced a stock-for-stock merger agreement with the world’s largest warehouse operator ProLogis, which saw shares decline 0.52%. 

Also Monday, shares in the largest U.S. aluminum producer Alcoa added 1.55% after it agreed to purchase TransDigm Group’s aerospace fastener business for approximately USD240 million. Shares in TransDigm climbed 1.01% following the news.

However, shares in the world’s largest coffee house chain Starbucks tumbled 2.93% after the stock was downgraded after posting worse-than-expected earnings results last week.

Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 added 0.16%, France’s CAC 40 rose 0.19%, Germany's DAX shed 0.21%, while Britain's FTSE 100 was down 0.08%.

Earlier in the day, official data showed that the U.S. core personal consumption expenditure index was unexpectedly flat in December. The report said that while personal spending rose more-than-expected in December, personal incomes rose less-than-expected.

Separate data showed that manufacturing activity in the Chicago area rose unexpectedly in January.


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