<img src="http://www.reuters.com/resources/r/?m=02&d=20091103&t=2&i=12184409&w=239&r=2009-11-03T155712Z_01_BTRE5A210DK00_RTROPTP_0_US-BURLINGTONNORTHERN-BERKSHIRE" title="Energy Savings | Us Small/midcaps-energy Up With Oil, Industrials On M&a
” />
By Rodrigo Campos
NEW YORK, Nov 3 (Reuters) – Mid- and small-cap stocks
rallied on Tuesday as upbeat factory data lifted oil prices and
energy shares, while industrials got a boost from Warren
Buffett’s multibillion dollar deal to buy Burlington Northern
railroad.
Quicksilver Resources Inc (KWK.N) led the midcap energy
sector higher with a 9.3 percent rise to $13.27. Small-cap
Matrix Service Co (MTRX.O) added 8 percent to $9.48 after
posting quarterly results.
Crude futures CLc1 settled up 1.9 percent at $79.60 per
barrel on strong factory orders data and a rally in gold. The
S&P Midcap energy sector .4GSPE gained 2.7 percent while the
energy small caps .6GSPE rose 3 percent.
Warren Buffett’s Berkshire Hathaway Inc (BRKa.N) agreed to
buy Burlington Northern Santa Fe Corp (BNI.N) in an acquisition
that values the railroad company at $34 billion, and is
Berkshire’s biggest deal ever. For details see
[ID:nN03483590].
Smaller railroad Kansas City Southern (KSU.N) jumped 7.1
percent to $25.79 and the S&P Midcap Road & Rail Industry index
.4GSPRAR gained 4.3 percent.
“Without question transports in general are following upon
that bid (for BNSF),” said Scott Billeaudeau, portfolio manager
at Fifth Third Asset Management in Minneapolis.
“With the economy improving, especially industrials, it is
going to be good for the energy sector,” he said. “Oil up is
certainly feeding into that.”
Data showed earlier U.S. factory orders rose 0.9 percent in
September, more than forecast, and inventories continued to
shrink, bolstering the prospects for a sustained economic
recovery. [ID:nN03499628].
The S&P MidCap 400 index .MID gained 1.2 percent while
the S&P SmallCap index .SML added 1.3 percent. In comparison,
the large-cap S&P 500 index .SPX edged up 0.2 percent.
Shares of Oshkosh Corp (OSK.N) jumped 10.9 percent to
$35.29 after the specialty truck maker reported
stronger-than-expected earnings as sales of tactical vehicles
to the Pentagon helped offset continuing weakness in
construction equipment sales. [ID:nN29350434].
Car rental company Avis Budget Group Inc (CAR.N) rose 11.5
percent to $9.42 after it posted a quarterly profit.
[ID:nBNG515959].
Texas Roadhouse Inc’s (TXRH.O) shares soared 16.7 percent
to $10.96 a day after the bar-and-grill restaurant chain’s
quarterly profit topped market estimates and it raised its 2009
earnings view. [ID:nBNG470546].
(Editing by Kenneth Barry)
© Thomson Reuters 2009 All rights reserved
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Warren Buffett rides the rails
Warren Buffett’s Berkshire Hathaway will pay $26 billion to buy out railroad Burlington Northern in what the billionaire investor called a bet on the U.S. economy. Full Article Video
Commentary: Buffett bets on coalVerdict: "A move to leverage on coal"Buffett may eye stake salesMore people likely to invest with Buffett US SMALL/MIDCAPS-Energy up with oil, industrials on M&A UPDATE 1-Quicksilver sees 20 pct rise in FY10 production UPDATE 1-Quicksilver says lenders affirm $1 bln borrowing base Quicksilver shares jump on positive Horn River well results Investec sees upside in big energy stocks Quicksilver Resources Inc. (KWK.N) Quote, Profile, Research Matrix Service Company (MTRX.O) Quote, Profile, Research Berkshire Hathaway Inc. (BRKa.N) Quote, Profile, Research Burlington Northern Santa Fe Corporation (BNI.N) Quote, Profile, Research Kansas City Southern (KSU.N) Quote, Profile, <a target="_top" hr