(September 7 – 17:30 ET) – A huge media buyout lead market news. But still it was a relatively slow day in North American trading. Viacom Inc. announced it will buy CBS Corp. for 36.6 billion in stocks and debt. Viacom is the parent company of MTV and Paramount Studios.
In Canada the sluggishness was due partly to a 50-minute trading halt on the TSE at around noon today. Despite the data transmission problems, roughly 90 million shares changed hands on the TSE. It edged up by 44.03 points just before close, to 7050.77. The ME was set to close higher as well, gaining 15.16 points late in the day. In late Pacific trading, the VSE dropped more than 11 points. The ASE was down about half a point.
Neverthless, a few sub-sector reports from U.S. analysts sent small shock waves through markets in the US and in Canada. A Lehmen Brothers report projected cell phone penetration in North America would be near 70% by the year 2007, buoying cell phone stocks. In Canada, Clearnet Communications Inc. stock had jumped by C$2.45, to $25.90 late in the day. In the US, Nextel Communications was up close to US$2 to $62.75. Aerial Communications was up more than $1, to $18.70.
Airlines dipped somewhat after a Merrill Lynch release projected tighter revenue for August and September. That sent Delta Airlines, Southwest Air Lines and others down.
A Salomon Smith Barney analyst projected good Q3 earning for GE, sending the stock up more than US$2, over $118.