U.S. MARKET AVERAGES

Merger Monday washed with oil profits.

While details of the deals are few but market is anticipating two bids for, GMAC, arm of General Motors Corp. One bid from Citigroup and Cerberus Capital and other from Wachovia and Kohlberg Kravis & Roberts. Citigroup is expected to bid $11.5 billion for a majority stake according to published reports. General Motors stock rose 2.3%.

Arcelor, European steel maker rejected $23 billion from largest steel company Mittal Steel (MT: chart) on the grounds that two companies share different values, visions and priorities. It appears that politicians in Spain, France and Luxembourg, three government shareholders, are not ready to endorse this deal.

Privately several fund managers in Europe believe that if the offer price is raised from euro 27 to 34 for Arcelor, then the company may have difficulty in remaining independent. However this unsolicited bid has sparked a frenzy of speculation for more consolidation in steel industry.

Wal-Mart reported that same-store sales in January partly due to strong redemption of gift cards rose 4.7%, better than a previous guidance of 3% to 4%. Wal-Mart stock rose 1.3%.

Exxon Mobil reported that profit jumped 27% to over $10 billion on revenue of $99.66 billion. The company stock jumped 3%. The company reported largest profit ever recorded by any company.

On other earnings news, Sysco (SYY: chart), Schering Plough (SGP: chart), Cummins (CMI: chart), Tyson foods (TSN: chart) and Eastman Kodak (EK: chart) reported disappointing earnings.


MOVERS AND SHAKERS

Lowrance Electronics (LEIX: chart), marine electronics products company, agreed to be acquired by Simrad Yachting AS for $215 million, or $37 a share which represents a premium of 48% from a closing price of $25 for Lowrance stock on Friday. The stock surged 46.5%.

USG Corp (USG: chart) agreed to resolve asbestos personal injury claims in a Chapter 11 agreement that paves the way for the company to exit bankruptcy in 2006. Berkshire Hathaway (BRKA: chart) will backstop a $1.8 billion stockholder rights offering. After voting on the plan, the plan will require approval by both the Bankruptcy Court and the district court that oversees the cases. The company also reported a Q4 net loss of $1.8 billion or $39.94 a share, compared to earnings of $85 million, or $1.98 a share in the year-ago period, citing charges. Revenue rose to $1.34 billion from $1.17 billion. USG’s shares rose 16%.

FMC Technologies (FTI: chart) raised its Q4 outlook to earnings of 7 to 17 cents a share, or 43 to 53 cents a share when excluding a tax charge for repatriating earnings. FMC added that it''s near a completion of an offshore oil loading project in Algeria. Analysts expected adjusted earnings of 53 cents a share. The stock gained 6%.


ECONOMIC NEWS

Monday morning, the Department of Commerce released its report on personal income and spending in the month of December. The report showed that spending rose slightly more than expected while income rose in line with economist estimates.

The Commerce Dept. said that personal spending rose 0.9 percent in December following an upwardly revised 0.5 percent increase in November. Economists had expected spending to rise 0.8 percent compared to the 0.3 percent growth originally reported for November.

The report also showed that personal income rose 0.4 percent in December, matching the increase seen in the previous month. As mentioned above, the personal income growth came in line with economist estimates.

With personal spending outpacing personal income, personal saving as a percentage of disposable personal income was a negative 0.7 percent in December, compared with a negative 0.2 percent in November.