Producers of metals and other raw materials rose amid deal activity in the sector.
Alcoa shares slid after the American aluminum giant agreed to buy out Australian firm Alumina, its joint-venture partner in a global mining operation for $2.2 billion in stock.
"Any time, you use stock as barter, it's implied management believe the assets have better value" than the share price reflects, said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
That's particularly true when Alcoa is using "its stock with a depressed price as currency," as the aluminum maker's shares were far shy of their 52 week highs when the deal was struck.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
02-26-24 1730ET
