S&P 500: +23.73 (+2.58%)
Illinois Tool Works (ITW) +11.03%
ITW surged as Credit Suisse upgraded the diversified manufacturer from Neutral to Outperform. The upgrade was made on the basis of an attractive valuation at the current price. The analyst expects margins to double from 5 percent in the first quarter to 10 percent in the fourth quarter “reflecting restructuring benefits, stable markets and less acquisition headwind.”
The report also refers to the company’s history of strong acquisitions and reasonable debt levels as reasons to expect Illinois Tool Works to use the downturn to buy good assets at cheap valuations.
Cisco Systems (CSCO) +5.41%
Cisco will be added to the Dow Jones Industrial Average, effective June 8. Congrats to those who voted for the tech company in last month’s post on the subject.
Quick Hits
- Citigroup Stuck With Bernanke Ownership Offer American Banks Vow to Refuse
- Gross, Grantham, Bogle Lift Lid on ‘New Normal’
- Travelers, Cisco and the Dow 30
Peter Lazaroff, Junior Analyst
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