Dow Jones shares shot up nearly15% in trading Friday on the heels of the news that the company's controlling shareholders will consider bids from News Corp. and different possible suitors for the parent of the Wall Street Journal.
Shares in Dow Jones climb well past their recent 52-week high of $58.47, closing Friday at $61.20, up $7.89 on much higher-than-usual volume of trading. The unsolicited $5 billion bid that News Corp. made for Dow Jones last month valued the company at $60 a share.
The Bancroft clan that controls Dow Jones did a surprise about-face on Thursday after antecedently rejecting News Corp.'s offer. The Bancrofts said in a statement that they would meet with News Corp. chief Rupert Murdoch and other potential suitors as they consider various options for the company. No timetable was specified for the meeting with Murdoch. A News Corp. spokesman declined comment Friday on whether a meeting been set.
The Bancrofts' surprising replace of heart move spurred speculation that the release of the statement was designed to spur other bidders to make a formal offer for the company. In Thursday's statement, the clan that has controlled Dow Jones since 1902 stressed that its overriding interest was to assure that potential acquirers of the company would maintain "the level of commitment to editorial independence, integrity and journalistic freedom that's the hallmark of Dow Jones."
Dow Jones shares up on bid interest...
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Dow Jones Ind. Ave. and S&P 500 Test Equal Move Targets at Lows
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Dow Jones Ind. Ave. and S&P 500 Test Equal Move Targets at Lows
(Note: Unless otherwise stated, the index action described below relates to the EMini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.)
Hey gang! First off, I want to thank completely of you that made it out to my presentation on Monday evening in New York! It was quite a turn out! I'll be sending out a copy of the power point for the class this week, so keep an eye out for it!The market finally got past its afternoon sluggishness this week. In fact, the swings throughout the session over the past several days have been extremely nice for daytraders. The 5 minute moves have been smooth and without a great deal of chop on either the up or downside. Monday kicked off with a gap up, but selling hit suddenly out of the open and a strong downtrend took hold. This trend continued throughout the session and took the indices into the upper end of the daily target zone we had been following over the past several weeks. This amounted to an equal move zone hitting on the daily time frame in the S&P 500 and Dow Jones Industrial Average.
On Tuesday the markets rebounded with the strongest gains in over a month. The S&Ps had tested the November lows the day before and this served as a strong technical support level which fueled speculation of a low being established. We are still ahead of the typical reversal duration in the markets though, so I wouldn't mind just one more minor test of lows, into perhaps the 7000 level on the Dow. March tends to be a much stronger month for market reversals, as well as breakouts from trading ranges.
The Dow Jones Industrial Average ($DJI) ended lower by 80.05 points, or 1.1%, at 7,270.89 on Wednesday. The index's down 16.2% so far this year. The early morning losses on Wednesday were extended by poor housing data in which the National Association of Realtors reported that existing home sales fell 5.3% in January. This was a much stronger decline than had been anticipated and prices fell near 6 year lows. The S&P 500 ($SPX) fell 8.24 points, or 1.1%, and closed at 764.90. The Nasdaq Composite ($COMPX) lost 16.40 points, or 1.1%, on Friday. It closed at 1,425.43.
Dow Jones Etf...Basics Of Etf Trading...
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ETFs, or exchange-traded funds, were first introduced to the market in the early 1990's as well as are used as an investment vehicle, traded similar to stocks or shares on stock exchanges. These funds are often attractive to investors caused by their tax efficiencylow costs and similarity to stocks. ETFs have been called the most innovative investment medium of the last twenty years by 67% of investment professionals in March 2008. Of these professionals, 60% reported that ETFs have significantly changed how they build investment portfolios. Perhaps the most widely well-known ETF is called the Spider (SPDR) and tracks the S&P 500 index, trading under the SPY symbol.
ETFs experience price changes during the course of a trading day as they are bought and sold, but tend to trade at the same price as the net asset value of its underlying assets along the period of a trading day, and holds assets e.g. bonds or stocks. Most ETFs track / monitor a financial index, for example the Dow Jones Industrial Average.
Exchange-traded funds maintain completely the features of ordinary stock -- for example short selling, options and limit orders -- but provide well-to-do diversification, tax efficiency of index funds and low expense ratios. Unlike mutual funds, it does not have its net asset value (NAV) calculated every day. Some investors tend to invest in ETF shares as long-term investments because the able to be economically acquired, held and disposed of, while other investors prefer to trade ETF shares regularly in order to employ market timing investment strategies.
Some criticism has been given of ETFs. A leading issuer of index funds, The Vanguard Group, has argued that ETFs do not provide enough diversifications, that trading expenses decrease the potential return for investors. ETFs that tracked domestic indexes generally experience less than 2% variation on closing price, but variations might be much better when ETFs track foreign indexes. This is why monitoring of commodities is so important.
In late 2008 it was reported that a few lightly traded ETFs had frequent deviations of more than 5%, and in a select number of cases greater than 10%, though the typical deviation is not much more than 1%. The largest deviations in trade occur just after the opening of market. Several critics have claimed that ETFs have been used to manipulate market prices and been used in short selling, which according to some contributed to the 2008 market collapse.