An episode of Wall Street uncertainty over corporate outlooks began to lift, as an array of companies provided unexpectedly solid results.
Locally, Abbott Laboratories led the way higher, as analysts hailed the acquisition via Boston Scientific Corp. of some of Guidant Corp.’s businesses in the growing vascular products market.
North Chicago-based Abbott’s largest acquisition since 2001 gave the company a boost even though the health-care products-maker said that its fourth-quarter profit rose a mere 0.2 percent. The run-up in the stock “is all about the deal,” said one analyst.
Shares of Abbott finished at $43, up 15 percent from a recent low of $37.50.
And shares of Chicago Mercantile Exchange Holdings Inc. surged to new highs, topping $400 for the first time, as shareholders applauded the fact that the company won’t buy a 10 percent stake in the New York Mercantile Exchange.
Some members of the Merc, the nation’s largest futures exchange, were worried that a deal with New Yorkers would lead to a culture clash.
Shares of CME finished at $401.64, more than double their 52-week low of $163.80.
On the downside, shares of Brunswick Corp., the maker of Bayliner boats and Mercury marine engines, saw their biggest drop in 19 years as the Lake Forest company predicted it will see flat demand for boats. It blamed economic weakness in the Midwest, as well as aftereffects of Gulf Coast hurricanes.
The 2006 projections are based on signals from early in the boat show season, Brunswick said, and it still may be too early to draw conclusions about the entire year.
“What we’re seeing is a breath-catching brought on by many significant events in 2005,” said Chief Executive Dustan McCoy.
The stock of Brunswick ended at $36.15, off 27 percent from a 52-week high of $49.77.
And shares of Tribune Co. hit a 52-week low, falling below $30, as the company said its stations will carry a new television network being formed by Time Warner and CBS. The new CW Network, launching in September, will replace the WB and UPN networks.
Wall Street analysts were favorable to the arrangement but said it will take time to reap results.
Shares of Tribune, the parent of this newspaper, finished at $29.54, down 30 percent from a 52-week high of $42.17.
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wsluis@tribune.com
