Berkshire Hathaway Acquisition Fuels Stocks In Premarket Trading (BRK.A, BNI, UNP, CSX, NSC)

Stock futures came in weaker with concerns that the rally of the stock market is losing its momentum. However, with the news that Berkshire Hathaway (NYSE: BRK.A) is acquiring 77% of the remaining stocks in Burlington Northern Santa Fe (NYSE: BNI) for $100 a share and the assumption of its $10 billion in debt. The acquisition of the remaining 77% will give Berkshire Hathaway 100% ownership of the said company.

Warren Buffet in his statement described the acquisition as vital for the economy because according to Buffet, “Our country’s future prosperity depends on its having an efficient and well-maintained rail system.” He also added that he loved these kind of bets because in his own words, “it’s an all-in wager on the economic future of the United States”

This acquisition by Warren Buffet’s firm has helped rally the market off of its lows and generated pre –market buzz for other companies. A competitor for Burlington, Union Pacific Corporation (NYSE: UNP) took advantage of the news and rose around 8% in the pre-market. If Warren Buffet is right, then Union Pacific Corporation should also be able to take advantage of the benefits of the rail road system in this troubled economy.

Other transportation companies that are moving positively after the news includes CSX Corporation (NYSE: CSX) and Norfolk Southern Corporation (NYSE: NSC). CSX Corporation was up 8.08% in the pre-market as it rose to $46.30 while Norfolk went up to over 7% to $50.25 per share.

Other stocks that were moving generously in the market before it opens is Black and Decker Corporation (NYSE: BDK) after being acquired by Stanley Works. Stanley Works rose to $47.25 with an increase of $4.65%.

Look for these stock to continue moving as soon as the market opens.