The bulls get stronger
The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) have added to their morning gains. At 1:55 p.m. ET the small-cap index was up 3.19 points, or 0.38%, to 839.63. The Dow had climbed 100.31 points, or 0.72%, to 13,951.39.
The strength is generally stemming from merger news.
Limerick, Pa.-based Teleflex Inc. (NYSE: TFX), which makes surgical instruments and vehicle parts, has agreed to buy medical devices maker Arrow International Inc. (Nasdaq: ARRO) for $2 billion in cash, or $45.50 a share. The deal has been approved by the boards of both companies.
Another manufacturer of medical devices will also be changing hands after Red Wood City, Calif.-based FoxHollow Technologies Inc. (Nasdaq: FOXH) agreed to be purchased by Ev3 Inc. (Nasdaq: EVVV), which makes medical equipment, for $780 million in cash and stock.
In economic news, the price of oil has fallen about $0.80 to just bellow $75 a barrel following news that the Organization of Petroleum Exporting Countries hinted it could raise supply.
OPEC’s President Mohammed al-Hamli said on Sunday the price of oil was a worry even though the world economy is growing. The Vienna, Austria-headquartered cartel controls over 40% of global oil production.
