Economic data and M&A activity keep the bulls in charge Thursday. On Wednesday, the major market indices rose sharply on positive manufacturing data across the globe. Improving results continued this morning with jobless claims and same-store sales data. Merger activity continues to be heavy with Hewlett-Packard (HPQ) raising its bid for 3PAR (PAR) and private equity firm 3G Capital making a bid for Burger King (BKC).

PAR shareholders have benefited from a bidding war between HP and Dell (DELL). Dell came in at the last hour with a bid of $32 for PAR, quite a jump from its initial offer of $18, and above HP’s most recent bid of $30. However, HP has raised its bid once again, this time to $33. PAR shares are up nearly five percent on the news to a price above $33.50. 

Burger King shares are up nearly 24 percent in early trading after 3G Capital offered $4 billion for the company. This equates to a price of $24 a share with BKC trading at $23.35 currently. 

Jobless claims for the week ending August 28 fell by 16,000 claims to a level of 472,000. This was in line with estimates and pushed the four-week moving average down by 2,500. However, claims remain way too high for consistent jobs growth with the four-week moving average at 485,500. 

Productivity in the second quarter fell for the first time since late 2008, dropping 1.8 percent. This isn’t necessarily a bad thing however, as it could lead to hiring. It seems businesses have done all they can to keep labor costs down and this might now lead to hiring as long as demand is there. 

Retailers are getting attention Thursday following the release of same-store sales data for August. Results have generally been better than expected with Limited Brands (LTD) and Costco (COST) a few of the strong performers. August data is important since it covers the back to school timeframe, which is the second largest shopping season for retailers. Traders are buying retail stocks this morning with the Retail HOLDRs (RTH) up more than one percent in early trading.

Traders still have pending home sales and factory orders to digest Thursday, along with comments from Fed Chairman Bernanke. The bulls are hoping that the gains seen Wednesday will hold and that Friday’s jobs data will not spoil a strong September start.  

Jody Osborne
Senior Writer & Options Strategist
Optionetics.com ~ Your Options Education Site