Sector Wrap: Technology, Chain Restaurants
Thursday, September 2, 5:23 PM ET

On Monday, the Commerce Department said consumer spending increased 0.4% in July, while incomes only grew by 0.2%. This was the biggest jump in spending since March.

In turn, the consumer savings rate fell from 6.2% in June to 5.9% in July.

On Tuesday, the S&P-Case-Shiller home price index showed a 4.2% increase in home prices in June vs. June 2009, better than economists has expected.

This is the third monthly increase in prices in a row.

Prices in June vs. May 2010 rose a seasonally adjusted 0.3%, with prices increasing in 17 of the 20 cities surveyed.

On Thursday, the Labor Department reported that initial jobless claims fell by 6,000, to 472,000 for the week ending August 28.

The four week moving average of first-time unemployment claims fell by 2,500, to 485,500.

Economists had expected a small increase in initial claims.

3Par accepted Hewlitt Packard's (NYSE:HPQ) $33 per share bid, saying it is a superior proposal to it's previously announced merger agreement with Dell (NASDAQ:DELL). The 3Par board notified Dell’s board of its intent to terminate the merger agreement with Dell.

On Wednesday, The Wall Street Journal reported that Burger King had discussed a potential takeover with private equity firms. On Thursday, Burger King (BKC) shares soared 24% on news it had agreed to be taken private by buyout firm 3G Capital for $4 billion. Shares of other companies in the restaurant chain sector, including Sonic (NASDAQ:SONC), Wendy's Arby's Group, and California Pizza Kitchen (CPKI) saw strong gains on speculation thtat there would be more private equity buyouts in the sector.