It's amazing how the negative mood of a market can stop on a dime. Take Tuesday's market trading, for example, where the dealmaking engine continued to spew out transaction after transaction, but its impact on trading was only felt after some oil was added to the equation. The drop of the price of oil by more than $5 a barrel helped to jump-start the markets, which pushed the Dow up 152.25, or 1.36%, to 11,384.21, and the Nasdaq rose 51.12, or 2.28%, to 2,294.44. Here's a closer look at the activity of Deal Stocks in Tuesday trading.
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On the financial front, Ambac Financial Group Inc. [ABK] shot up 73 cents, or 52.52%, to $2.12, making its biggest gain over the last several months. The company announced it has enough liquidity despite downgrades from rating agencies, Standard & Poor's, Moody's Investors Service and Fitch Ratings. The company said the downgrades cost Ambac an additional $506 million in increased collateral-posting requirements investment agreement terminations of $270 million in June. But the company said that if it receives another downgrade, it would have to turn to its unit Ambac Assurance Corp. for capital.
Ford Motor Corp. [F] rose 43 cents, or 9.62%, to $4.90 as China's Chery Automobile has been the latest to be linked to acquire unit Volvo Car Corp. The Detroit-based automaker insists Volvo is not for sale. It's no coincidence that Ford also announced that its sales in China has grown by 30%.
But all wasn't roses, especially for Maguire Properties Inc. [MPG], which said it reached an agreement to sell Main Plaza property in Orange County, Calif., for $211 million to Shorenstein Properties LLC. The largest office landlord in Los Angeles has been looking to raise capital to service its debt and has long talked about divesting some or all of its properties in Orange County. - Gerald Magpily
