Stock Market Today, Sept. 26, 2014: U.S. markets rebounded Friday, with biotech companies leading the charge in today's session. The markets got a strong shot in the arm after the U.S. Commerce Department revised GDP growth upward for the second quarter. The U.S. economy accelerated at its strongest pace in 30 months.
Here's the scorecard from today's trading session:
Now, here's a breakdown of the day's top stories and stock performances:
Moving On: "Bond King" Bill Gross shocked the markets today, announcing plans to leave Pacific Investment Management Company LLC (commonly called PIMCO), the company he founded 43 years ago. Gross will be moving to Janus Capital Group Inc. (NYSE: JNS) to run the company's recently started Janus Global Unconstrained Bond Fund. A number of reports indicate that Gross was on the verge of being fired. Other reports indicate that Pimco's Total Return Fund is at risk of capital flight, with figures as high as 30%, on news of Gross' departure. Shares of Janus Group were up more than 42% after the announcement. Bloomberg reports that Pimco's Deputy Chief Investment Officer Daniel "Dan" Ivascyn is the likely successor of the company. The PIMCO Strategic Income Fund Inc. (NYSE: RCS) was down more than 4.5% on the day.
Doubling Up:Shares of Yahoo Inc. (Nasdaq: YHOO) and AOL Inc. (NYSE: AOL) surged this afternoon more than 4% and 3% respectively. The gains came on news that Yahoo! shareholder Starboard Value LP urged a merger between the two online giants.
Total Recall: U.S. automaker Ford Motor Co. (NYSE: F) announced it will recall 850,000 automobiles, citing a problem with its airbag systems. The company is recalling models of the 2013-2014 Ford Fusion, Escape, C-MAX, and the Lincoln MKZ. This marks the 12th recall for models of the Ford Escape. Shares of Ford were up 0.8% on the day.
The World Responds:Shares of Tekmira Pharmaceuticals Corp. (Nasdaq: TKMR) slipped 1.5% on the day, despite news that the International Monetary Fund has taken action against the deadly Ebola outbreak in Africa. The IMF announced its approval of $130 million in support to combat the epidemic, which should benefit pharmaceutical companies with vaccines or preventative measures to address the disease. Shares of Tekmira have soared this year thanks to growing optimism about its Ebola vaccine.
Earnings Surge:Shares of Nike Corp. (NYSE: NKE) surged more than 12% this afternoon after the company reported strong first-quarter earnings.
Now our experts share some of the most important investment moves to make based on today's market trading - for Money Morning Members only:
A Post-Petrodollar Play for Triple-Digit Gains: It is now clear as day that both Russia and China are making concerted efforts to move off the petrodollar system. The result of this trend will roil the currency markets, and we can expect these seismic shifts to affect the U.S. dollar - and the stock market. The changes open up profit opportunities, too, and Money Morning Resource Expert Peter Krauth has found the perfect stock to benefit from the petrodollar's demise.....
(Other) Investors Will Hate You for Using This Investment Strategy: Even with interest rates so low and the economy steadily improving, many nervous investors - worried about a correction - are selling off. Whenever this sort of negative noise is in the air, it is not a time to sell; it's a profit opportunity for tech investors. That's why Defense & Tech Specialist Michael A. Robinson is sharing three strategies designed to turn market declines to your financial advantage. With them, you'll leave the nervous sellers in the dust...
252 Million Years Ago, This Nearly Wiped Out All Life... Tomorrow, It Could Solve Our Energy Problems: According to an April study issued in the Proceedings of the National Academy of Sciences, permafrost soil, which typically remains frozen all year, is thawing and decomposing at an accelerating rate. But after a shocking discovery, it seems something locked in the soil could become the fuel of the future... and you could profit big off the new revolution.
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.