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The Dow Jones and S&P 500 hit new records Tuesday, boosted by healthcare stocks. The Dow added 40 points after a fresh round of mergers and acquisitions fueled domestic optimism.
Investors also grow more hopeful Japan's stimulus efforts will drive the world's third-largest economy out of recession.
Dow: 17,687.82, +40.07, +0.23%
S&P 500: 2,051.80, +10.48, +0.51%
Nasdaq: 4,702.44, +31.44, +0.67%
What Moved the Markets Today: Oil stocks remain battered and bruised as crude oil prices continue to decline on supply concerns ahead of a critical OPEC meeting. But falling energy prices couldn't stop upward momentum in the Dow and S&P 500 on new optimism after a series of deals in the healthcare sector.
Now check out the day's most important market notes:
- Deal Accepted: Shares of Allergan Inc. (NYSE: AGN) jumped 2% on news the firm has accepted a $66 billion cash-and-stock offer from Actavis Plc. (NYSE: ACT). Activist investor Bill Ackman, who has been attempting to engage a hostile takeover of the Botox manufacturer for months, announced his support for the deal. Ackman said he will call off his demand for an Allergan shareholder meeting on Dec. 18 to discuss his fund's joint offer with Valeant Pharmaceuticals International Inc. (NYSE: VRX). Shares of Actavis rose 8.7% on news of the deal.
- Solar Storm: It was a strong day for solar companies. Shares of JA Solar Holdings Co. Ltd. (Nasdaq ADR: JASO) jumped more than 8.5% after the firm reported its fourth consecutive quarterly profit. Shares of TerraForm Power Inc. (Nasdaq: TERP) jumped 26% on news it has partnered with SunEdison Inc. (NYSE: SUNE) to purchase First Wind, a developer and operators of wind farms, for $2.4 billion. Shares of SunEdison jumped more than 29%.
- Keystone Completion: American voters and a majority in the U.S. Senate were hopeful 60 votes could be found in the upper chamber to pass the Keystone XL Pipeline. But the Senate is stuck on 59 votes for closure on news that Maine Senator Angus King has said "no," according to Reuters. The vote is slated this evening for 6:15 p.m., but King, who is an independent caucusing with the Democrats, said Congress shouldn't be involved in approving infrastructure projects. Senator Mary Landrieu (D-LA), who is working to ensure the project's approval to protect her seat in a run-off election next month, says she still has 60 votes to make the deal happen. Shares of TransCanada Corp. (USA) (NYSE: TRP), which would own and operate the pipeline, dipped 1%. Here's why the Keystone Pipeline vote will leave President Obama with nowhere to hide on the issue…
- Bad Fashion: Shares of Urban Outfitters Inc. (Nasdaq: URBN) slumped more than 6% after the clothing retailer reported weak third-quarter earnings. The manufacturer of clothing for teenagers fell well below consensus estimates of $0.41 per share, registering a per-share earnings report of $0.35.
- IPO Power: Shares of Virgin America Inc. (Nasdaq: VA) soared nearly 12% as investors continue to share positive enthusiasm after the company's IPO last week.
Now our experts share some of the most important investment moves to make based on today's market trading – for Money Morning Members only:
- How Google Will Dominate the Future: Today, Money Morning Tech Specialist Michael A. Robinson discusses why Google is such an intriguing tech investment with enormous upside. This industry leader has somehow combined Warren Buffett's business genius and Google Director of Engineering Ray Kurzweil's futurist brain… and there's nothing but profit ahead for investors…
- This Play Could Double Again – But There's Much More to It: Our Chief Investment Strategist Keith Fitz-Gerald had a big smile on his face after he saw a stock he recently recommended has already doubled. And this human augmentation company is still a great buy if you understand Keith's favorite trading tactic. To read how this small-cap stock is poised for bigger profits, you must learn the power of the Free Trade.
- How We'll Play the 2014 Year-End Rally: Stocks are headed higher through year end for many reasons, but one in particular is telling. It's really simple, yet too many people have overlooked it; indeed, most wouldn't even give it enough thought. And that would be a big mistake… As Money Morning's Shah Gilani explains, if you understand that one compelling reason, you can pick some winners – and pocket big profits – yourself.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.