The Dow Jones Industrial Average soared to a new intraday record today (Monday) as shares of small-cap and technology stocks rebounded from their recent losses. Caterpillar Inc. (NYSE: CAT) continues to drive the exchange higher, as it is the only stock on the Dow that is up double digits this year.
Now here are the top stories from today's trading:
Not Going Away Quietly: Although Allergan Inc. (NYSE: AGN) announced it will not accept a takeover bid from Valeant Pharmaceuticals International Inc. (NYSE: VRX), activist investor Bill Ackman isn't finished his crusade. Ackman has now requested the full list of Allergan's shareholders and plans to "communicate with fellow stockholders of the company." The end goal is to have shareholders in the manufacturer of Botox apply pressure on the board and ensure a takeover in the near future. In case you missed it, here's the Allergan deal back story.
A New Russian Wrinkle: Russian energy giantGazprom announced it might halt natural gas shipments to Ukraine by June 3. The warning comes after Ukraine has failed to pay its debts to the company. The halting of natural gas supplies could impact at least 18 countries in Europe, which rely on Russia natural gas to fuel their economies. The announcement is the latest form of saber rattling in a region that continues to grow more unstable. That's why our energy expert Dr. Kent Moors warned Money Morning Members earlier this year about the energy stocks most at risk in the Ukraine crisis.
Going Away for a While: U.S. prosecutors urged a federal judge to sentence Michael Steinberg, a portfolio manager at Steven A. Cohen's SAC Capital Advisors, up to 6.5 years in prison for insider trading. The conviction is a significant black eye for Cohen's group, though no charges have been filed on anyone higher up in the organization.
More Cuts in the Finance Market: Job security on Wall Street continues to get shakier. This morning, J.P. Morgan Chase (NYSE: JPM) announced plans to cut up to 10,000 jobs in 2014 due to declining business and increased regulations on the sector. TheNew York Post also speculated that CEO Jamie Dimon could be on his way out, after the company said it expects revenues in its in fixed income and trading to plummet by 20% in the second quarter. The announcement comes just one week after Barclays (NYSE ADR: BCS) announced similar plans to reduce its workforce size.
Banks Behaving Badly: There won't be any mercy for BNP Paribas (NYSE: BNP) or Credit Suisse Group (NYSE: CS). Both companies are begging U.S. regulators to ease demands in guilty pleas over the banks' alleged illicit activities. The banks are seeking "more modest" guilty pleas, but U.S. authorities appear ready to file additional criminal charges if they fail to accept the proposed deals. Credit Suisse has been charged with assisting Americans in tax evasion, while BNP Paribas allegedly violated sanctions against Iran. For more about this Feds vs. Banks battle, read Feds Finally Put Their Scopes on the "Too Big to Jail"
Time to Turn High-Tech "Rust" into Gold: In his more than three decades of working with Silicon Valley companies, Michael Robinson found high-tech "rust" may be a lot less obvious and much more insidious. While this "rust" often takes down companies, it happens to be setting up three cash-generating firms that offer big opportunities today...
This One Factor Will Isolate Huge Winners... Quickly: It's easy to be overwhelmed trying to make heads or tails of all the stock information at your disposal. But when you know how to sort through it, you can start finding profits immediately. So let's take a moment to demystify how to use a stock screen to find tremendous gains...
The Emerging Market Game Changer Is Here: Many observers thought the BRICS nations would encounter too many obstacles to collaborate effectively in creating an institution to take on the IMF. But after announcing such plans just over a year ago, the next BRICS summit in July is likely to see the official launch of these institutions. The implications are huge for investors...
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.