Traders-Blog.com

Today’s market was disappointing but not a big surprise with record high oil prices and fears that the Federal Reserve will raise interest rates. The Dow tumbled today, losing 64.28 points to close at 10,565.39. Additionally, the Nasdaq fell 0.28 points, closing at 2,007.51, while the S&P closed at 1,183.78 after losing 5.87 points.

IAC/InterActive announced that they would be purchasing Ask Jeeves, one of the top five search engines on the Internet. Barry Diller, CEO of IAC/InterActive, is working to expand his web presence; with Expedia, Match.com, Ticketmaster, and Citysearch already in hand, adding Ask Jeeves will allow Diller to compete with other rival companies such as Microsoft, Google, and Yahoo.

Time Warner came to an agreement today with the Securities and Exchange Commission (SEC) concerning the fraud case that has been going on. Time Warner is required to restate the advertising revenues from the fourth quarter of 2000 through the end of 2002. Additionally, they will be hiring an independent examiner to look at some other questionable accounts from the same time period. They will be paying the SEC $300 million in order to settle the fraud case.

Medicis Pharmaceutical Corp. has announced that it will be purchasing Inamed Corp. for $2.8 billion in a cash and stock deal. The combination of Medicis, the major producer of skin care treatment products, and Inamed, the maker of breast implants, will form a company that should bring in around $700 million per year. Inamed shares shot up $1.97 after the announcement while Medicis lost $2.57.

With all the concern over security these days, United Technologies Corp. has decided to purchase privately-held Lenel Systems International. The purchase price is $400 million. Lenel, with their 150 employees, manufactures several different types of security systems including fingerprint scanners and security software. The purchase should help boost United Tech’s profits for the year.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter