Russell 2000 heads rally
The Russell 2000 (NYSE: IWM) is leading the rally with the Dow Jones Industrial Average (INDU) in tow as stocks react to news of mergers and acquisitions.
At 10:04 a.m. ET the small-cap index had added 9.59 points, or 1.22%, to 797.97. The Dow was up 97.71 points, or 0.75%, to 13,188.57.
MGM Mirage (NYSE: MGM) will sell a 9.5% stake to Dubai World for $5 billion, according to news reports this morning. That comes to a price of $84 per share, 13% above the stock’s closing price of $74.32 on Tuesday.
Under the terms of the deal, which was approved by MGM’s board on Tuesday, Dubai World will also pay $2.7 billion to acquire 50% of CityCenter, a hotel and residential development slated to open in 2009.
Dubai World is a state-owned holding company from Dubai, one of the seven emirates that together make up the United Arab Emirates.
Elsewhere, TD Ameritrade Holding Corp. (Nasdaq: AMTD), which provides online securities brokerage services, and New York-based rival E*Trade Financial Corp. (Nasdaq: ETFC) are in merger talks, according to the Wall Street Journal.
Mergers and acquisitions have been absent during the past few weeks, as markets have been affected by a credit squeeze that has dried up the flow of cheap money.
Also adding to the bullish sentiment is more speculation that the U.S. Federal Reserve will move to lower interest rates to calm markets.
The following are the most actively traded companies with market capitalizations under $500 million:
| Price at | % | ||||||
| 10:09 et | Change | Change | Volume | Year High | Year Low | ||
| LEND | ACCREDITED HOME LENDRS HLDG | 6.06 | -0.49 | -7.5% | 2,775.9k | 37.15 | 3.77 |
| ESPD | ESPEED INC | 7.40 | -0.01 | -0.1% | 1,340.6k | 11.28 | 7.02 |
| XHB | SPDR S&P HOMEBUILDERS ETF | 25.52 | +0.33 | +1.3% | 983.9k | 40.03 | 22.68 |
| RTH | RETAIL HOLDRS TR | 98.84 | +0.77 | +0.8% | 947.3k | 108.73 | 89.70 |
| FMT | FREMONT GEN CORP | 5.39 | +0.44 | +8.9% | 930.2k | 17.30 | 2.95 |
| BZH | BEAZER HOMES USA INC | 11.22 | +0.01 | +0.1% | 833.2k | 48.60 | 8.10 |
| UNG | UNITED STATES NATL GAS FUND | 36.47 | -1.37 | -3.6% | 665.4k | 54.68 | 37.11 |
| IAI | ISHARES TR | 50.52 | +0.94 | +1.9% | 630.2k | 58.47 | 43.88 |
| SMSI | SMITH MICRO SOFTWARE INC | 14.00 | -0.75 | -5.1% | 602.6k | 21.20 | 11.38 |
| XME | SPDR SERIES TRUST | 56.54 | +1.54 | +2.8% | 521.9k | 68.02 | 38.48 |
