The Age of Disco: S&P 500 = 1,978

The stock market is showing some strength this morning. The S&P 500 is up to 1,978. One catalyst for the rally is better-than-expected earnings from Citigroup ($C). The bank also settled all of its problems with the Justice Department for a cool $7 billion. Citigroup is a cheap stock, but I’m not a fan until they start paying a serious dividend. None of this one penny per share stuff. The stock is up close to 4% this morning.

AbbeVie (ABBV) is trying once again to buy Shire PLC. The deal is now up to $53 billion. You can really see how strong the merger forces are in healthcare right now. This would be the largest “inversion” deal ever made. This is also AbbVie’s fifth attempt to buy Shire. Shire’s board shot down the previous four offers. They look ready to accept this one.

Microsoft (MSFT) is up to another 14-year high this morning. The stock has been as high as $42.45 today. It needs to be near $60 to make an all-time high. Also, Ford ($F) just broke through $17.50 per share.

Bed Bath & Beyond ($BBBY) announced that it will issue 10-, 20- and 30-year bonds to help fund their big buyback program. If they believe the stock is a bargain, and I agree, then this makes a lot of sense. The shares recently broke above $60.

Posted by on July 14th, 2014 at 11:14 am

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