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Dow Jones Today: Markets roared again on Tuesday on easing geopolitical tensions in Eastern Europe and stronger earnings results. The Dow Jones Industrial Average climbed 86.63 points to 16,535.37. The S&P 500 was up 8.9 points to finish at 1,878.33, and the Nasdaq rose 29.14 points to finish at 4,103.54.
Here's your recap of today's major market events...
- Sanctions Hold Up: It looks like Morgan Stanley (NYSE: MS) may have to wait a while before it can sell its physical oil unit to OAO Rosneft Oil Co. (OTC: RNFTF). The sale is yet to be submitted to U.S. regulators, and there is a good reason why. The United States has placed sanctions on Rosneft Chief Executive Officer Igor Sechin. Due to increased tensions between Russia and Ukraine, it is unlikely that the U.S. Committee on Foreign Investment would approve the deal. The sale of this unit is a big deal, given Morgan Stanley's prominence in the commodity markets just six years ago. Few remember that in 2008, Morgan Stanley was technically the largest oil company in the world, given their immense paper contract holdings in oil and gas futures.
- Looking for a White Knight: Healthcare M&A is still on a torrid pace. Reports indicate that Allergan Inc. (NYSE: AGN) is seeking a white knight after it received an unsolicited $45.7 billion bid from Valeant Pharmaceuticals Intl Inc. (NYSE: VRX). The company is now shopping itself to several companies, including Johnson & Johnson (NYSE: JNJ) and Sanofi SA (NYSE ADR: SNY).
- Russia Stands Down: It looks like Eastern Europe can breathe a little easier. Today, Russian diplomats assured that it would not invade Ukraine and that its troops have left the border. The announcement comes in the wake of the United States' and European Union's ramped up sanctions.
- A French Quagmire: It looks like Siemens AG (NYSE ADR: SI) is looking to steal Alstom SA, a manufacturer of power transmission gear and the high-speed TGV trains, from General Electric Co. (NYSE: GE). The company is preparing to make a bid for the company, but said it will not do so until it has a full look into the company's books. GE is specifically interested in purchasing Alstrom's energy assets, which comprise approximately 70% of its profits. Alstrom employs 18,000 workers in France and was the subject of a massive state bailout just a decade ago.
- The End of the Feud: One of the most entertaining feuds in Wall Street history has ended. Activist investors Carl Icahn and Bill Ackman have been at each other's throats over Herbalife Ltd. (NYSE: HLF) for the better part of two years. But last week, Ackman called Icahn's assistant to say: "I am calling to forgive Carl." Icahn returned the call and said he forgives Ackman. In fact, the love is now so strong that the Economic Timesreports that the two may team up on certain activist investments in the future.
Tuesday's Top Three Profit Opportunities
- These Basics Will Make You Big Money in the Markets: By the time you're done reading this, you'll understand everything about investing and marvel at how simple it all is. You'll know more than your friends - even more than most brokers. And you'll start "seeing" the money in the markets. So, let's get started. Here are the absolute basics, the things you need to know about stocks...
- These Long-Term Profit Machines Just Went On Sale: As impressive as biotech stocks have been in recent years, there are three great opportunities in the sector with just as much, if not more, potential that just got cheap. They're all 2014 IPOs... and the market hasn't figured out just how profitable they'll be. These shares are in the discount bin right now, but they won't stay there long...
- Gas Prices Are Heading Up (and the Sector That Will Benefit): The price of gasoline is on the rise again. In fact, gas is up 2.4% over the past week alone. Today, the average retail price is $0.04 higher per gallon than a year ago. And you can bet that as we move into the "official" start of the summer driving season, the worst is yet to come. So here's how you can profit if you prepare today...
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.