Stock markets in the United States rebounded as corporate deals overshadowed worries that the escalating insurgency in Iraq will affect oil supplies, which could lead to a price hike.
Islamic militants already seized some cities in Iraq and threatened to take over more cities, including the country’s capital, Baghdad. Today President Barack Obama promised that the U.S. will help the Iraqi government combat the militants who are closing in on Baghdad.
“The United States will do our part, but understand that ultimately, it’s up to the Iraqis, as a sovereign nation, to solve their problems,” according to Pres. Obama during a press conference at the White House. He also pointed out that the U.S. government “will not be sending” troops back to fight in Iraq.
President Obama said that the Iraqi government was unable to deal with the terrorist offensive and that he has discussed with his national security team the possibility of short-term military action. According to the U.S. president, the Islamic State of Iraq and Levant (ISIL), an al-Qaeda splinter group, “poses a danger to the Iraq and its people, and given the nature of these terrorists, it could pose a threat eventually to American interests as well.” He added that the oil supplies in Iraq appear not to be disrupted so far.
On the other hand, Matt Maley, an equity strategist at Miller Tabak and Co LLC opined, “I don’t think enough has happened overseas yet to turn this into a big problem.” He added, “The market was ripe already for a pull back, it just needed something to knock it down. It’s not the end of the world.”
- Dow Jones Industrial Average (DJIA)- 16,772.21 (+0.23%)
- S&P 500- 1,935.88 (+0.30 %)
- NASDAQ- 4,310.65 (+0.30%)
- Russell 2000- 1,160.68 (+0.11%)
- EURO STOXX 50 Price EUR- 3,282.84 (-0.04%)
- FTSE 100 Index- 6,777.85 (-0.95%)
- Deutsche Borse AG German Stock Index DAX- 9,912.87 (-0.26%)
- Nikkei 225- 15,097.84 (+0.83%)
- Hong Kong Hang Seng Index- 23,319.17 (+0.62%)
- Shanghai Shenzhen CSI 300 Index- 2,176.24 (+1.06%)
Stocks in Focus
The stock price of Intel Corporation (NASDAQ:INTC) climbed more than 6% to $29.86 per share after the company raised its revenue forecast for the second quarter, citing stronger than expected demand for business PCs. The world’s largest producer of semiconductors now expects to generate $13.7 billion (plus or minus $300 million) in revenue for the second quarter.
Shares of Express, Inc. (NYSE:EXPR) rose more than 21% to $16.45 per share after Sycamore Partners informed its board of directors that it is interested in acquiring the retail chain and wants to perform due diligence to determine an acquisition price. Sycamore currently has a 9.9% stake in Express.
OpenTable Inc (NASDAQ:OPEN) surged more than 48% to $104.48 per share after the company received an acquisition offer of $103 a share from Priceline Group Inc (NASDAQ:PCLN). Shares of Priceline dropped nearly 3% to $1,189.30 per share.
The stock value of International Game Technology (NYSE:IGT), the world’s largest maker of slot machines, gained more than 10% to climb to $15.86 per share after the company received takeover proposals from GTech SpA (BIT:GTK) and MacAndrews & Forbes Holdings Inc.