The bulls are back on Wall Street, at least for now.
Stocks (^GSPC) are aiming for a rebound after three straight weeks of losses following strong gains in Europe as the dollar falls ahead of this week’s Federal Reserve meeting and oil prices tumble.
Yahoo Finance’s Aaron Task says it all comes down to monetary policy.
“In Europe, the European Central Bank is just getting started with QE, whereas here the Fed has already wound down the QE program and is likely to raise rates at some point…if not this year, than early next year. So you have that dichotomy in rates… and really at the end of the day what really drives investment– early speculation. If money is cheaper in Europe, money is going to go to Europe,” Task explains.
Germany’s DAX (^GDAXI) index hitting an all-time high, rising above the 12,000 mark for the first time ever.
“The European economy has shown some signs of life in recent months after pretty much being left for dead. So that is also giving the bulls some hope that this rebound in European markets is just getting started,” Task notes.
It wouldn’t be Monday if we didn’t have some M&A action.
Valeant Pharmaceuticals (VRX) sweetened its offer for Salix Pharmaceuticals (SLXP) to $ 173 a share in cash to ward off a competing bid from Endo International (ENDP).
Life Time Fitness (LTM) shares are jumping in early trading. The health and fitness company is being bought by private investment firms Leonard Green & Partners and TPG in a deal valued at more than $ 4 billion. That works out to $ 72.10 a share, almost $ 5 above Friday’s closing price.
Related: Disney gets ‘Cinderella’ boost; BlackBerry tablet; Tesla battery upgrade
In other corporate news…Disney’s (DIS) live-action fairy tale adaptations seem to still have plenty of magic at the box office. “Cinderella” raking in just over $ 70 million in sales at the theaters opening weekend.
BlackBerry (BBRY) is making another effort to enter the tablet market. The company unveiling a security-focused tablet over the weekend called SecuTABLET. The device was developed with Samsung and IBM (IBM) and its part of Blackberry’s strategy to regain business and government customers. The new tablet will be available this summer with a price tag of about $ 2,400.
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Madison Square Garden’s (MSG) Chief Executive is leaving after a year on the job. Tad Smith is resigning and will become Sotheby’s (BID) new CEO at the end of the month.
Tesla (TSLA) is hinting at battery life upgrades to the Model S sedan. CEO Elon Musk tweeted that the car will receive an update that will “end range anxiety.” He also announced a press conference this Thursday. The standard Model S can travel about 200 miles per charge.
Uber is entering the electric car market. The ride service company is teaming up with Chinese car maker BYD Company to offer Uber drivers the option to rent or buy an electric car. The program is launching in Chicago and there are currently 25 BYD cars in use. BYD is part owned by Warren Buffet’s Berkshire Hathaway (BRK-A).
Task thinks the deal may help Uber gain access into Chinese market.
“The real game here for Uber is to try to make friends with the Chinese because they want to get into China in a big way, as well. The key phrase in what you just read is that this is a Chinese owned electric car maker. They’re not doing this deal with Toyota (TM)… or Tesla… or anybody else; they’re doing it with a Chinese automaker,” according to Task.
And Facebook (FB) is revising rules for banned content. The social networking company updating its Community Standards rule book. Banned content will include violent or criminal behavior, videos of physical bullying, and altered images to degrade an individual.
- European Central Bank