The Dow Jones Industrial Average rose today.
Shah Gilani Media
Valeant Pharmaceuticals International Inc. (NYSE: VRX) and activist investor Bill Ackman announced an unsolicited takeover proposal of Botox maker Allergan Inc. (NYSE: AGN) for $47 billion on Tuesday.
According to Money Morning's Capital Wave Strategist Shah Gilani, that move signals the beginning of a M&A wave that is set to hit the market.
Tech stocks have been hit hard in the last week, and the Nasdaq Composite is down nearly 4% in the month of April. The index took another dive today, down 2.7% by 1 p.m.
Big names in the tech sector have been hit particularly hard. Netflix Inc. (Nasdaq: NFLX) is down 4% this month, Amazon.com Inc. (Nasdaq: AMZN) has dropped 5% in April, and Tesla Motors Co. (Nasdaq: TSLA) has dipped almost 6% this week.
Facebook Inc. (Nasdaq: FB) announced yesterday (Tuesday) that it plans to purchase the virtual-reality company Oculus VR Inc. for $2 billion.
Facebook Chief Executive Officer Mark Zuckerberg has pegged virtual reality as the "platform of tomorrow," and that's what led to the purchase. Still, some analysts are turned off by Facebook's $2 billion commitment.
UPDATE: A study released Thursday night by a public interest group, The Center for Auto Safety, claims that there were 303 deaths in recalled General Motors Company (NYSE: GM) cars in which airbags did not deploy. The study examined federal data to reach its conclusion.
What's more, the group's report states that GM intentionally misrepresented raw information about the crashes.
UPDATE: Today (Monday), General Motors Company (NYSE: GM) announced three more 2014 recalls. So far this year, GM stock has been feeling the sting of recall fallout, to the tune of a nearly 16% drop to $34.39 per share.
The most worrisome of today's recalls, both in terms of consumer safety and number of vehicles affected, is an air bag issue that will have to be fixed for 1.2 million of GM's crossover SUV models. If a customer ignores a warning light that reads "Service Air Bag," it can result in non-deployment on a side impact collision.
Speculators can't make heads or tails of the stock market in 2014. Some say this bull has grown long in the tooth.
"We've got a lot higher to go," Money Morning Capital Wave Strategist Shah Gilani said yesterday (Tuesday) on FOX Business' "Varney & Co."
First, let's take a look at the signs that have naysayers predicting this bull will run amok…