But these mergers, a few more that I will mention later, and a drop in the initial jobless claims, were not enough to pull the Dow Jones Industrial Average (INDEXDJX:.DJI) higher for the day. The index closed down nine points, or 0.07%, while the S&P 500 and the Nasdaq both fared slightly better, gaining 0.07% and 0.06%, respectively. The Dow now sits at 13,973, and is still up 6.63% year to date, but 16 of its 30 components closed in the red this afternoon. This morning, I explained why three of the six losers were moving into negative territory; if you would like to read who fell and why, click here. Or stick around to find out who were the Dow’s big winners.
Dow stocks that moved higher
The Dow’s biggest winner today was Alcoa Inc. (NYSE:AA) , as shares rose 2.09%. Investors pushed the stock higher, after it was announced that, moving forward, Alcoa will be party to a three-way love triangle, which now happens to include the Chinese government. This morning, the CITIC Group, which is a Chinese state-owned enterprise, purchased a 13% stake in Australia’s Alumina, for $467 million. Alcoa and Alumina have a joint venture called Alcoa World Aluminum & Chemicals. Alumina’s 40% stake in the Alcoa World happens to be its main asset. Long-term, Alcoa’s new connection to the Chinese government may be a good thing, as both parties will have a common goal.
Another merger which was announced earlier in the week between American Express Company (NYSE:AXP) and Twitter, may be the reason shares of the credit card company rose 0.39% today. The new service allows cardholders to “sync” their American Express card to a Twitter account, and then they will be able to purchase items with their card by simply tweeting. If this platform for consumer consumption takes off, American Express could realize huge returns due to an increased transaction count.
Lastly, the break-up which had investors cheering today came from JPMorgan Chase & Co. (NYSE:JPM). Bloomberg reported that the company was parting ways with a number of top employees. The report stated that three managing directors and 18 executive directors were cut, while a few senior employees left after they saw bonuses shrink. The cuts were primarily on the equity trading side of JPMorgan’s business, which experienced a slight revenue decline. The firm’s equities business slid 1.8%, to $4.4 billion, in 2012, while the fixed-income unit rose 4%, to $15.4 billion, during the same timeframe.
The article Mergers and Break-Ups Rule the Markets on Cupid’s Day of Love originally appeared on Fool.com and is written by Matt Thalman.
Fool contributor Matt Thalman owns shares of Berkshire Hathaway and JPMorgan Chase & Co. (NYSE:JPM).. Follow Matt on Twitter @mthalman5513. The Motley Fool recommends American Express and Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway and JPMorgan Chase & Co..
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