
[Chart courtesy of MarketWatch.com]
1. Moving the Markets
Wall Street, coming off its best weekly gain of the year, which was preceded by its worst one, kicked off the Holiday-shortened week in a cautious mood, as investors digested a record deal in the pharmaceutical space and kept a close eye on Europe, where the terrorism threat remains real.
It seems to me that Wall Street is in a tug of war at the moment, with the market benefiting from what has historically been a good seasonal period for stocks, but being held back by a market driven by just a handful of stocks, geopolitical risks and continued price pressures in the commodities space. At the same time, we are close to reaching the upper end of the trading range for he S&P 500 and need to see whether this glass ceiling will be broken or not.
U.S. Crude Oil dropped about 2.84% today to close at just under $40 a barrel. This means that prices could remain under $2 a gallon throughout most of the country this week.
In M&A news today, pharmaceutical giants Pfizer (PFE) and Allergan (AGN) are on the verge of announcing the largest healthcare merger in history. The merger would allow Pfizer to transfer its headquarters from the U.S.A. to Ireland. The $160 billion deal has raised eyebrows about the tax-saving strategy it entails, but it appears at present that the deal will reach the finish line.
6 of our 10 ETFs in the Spotlight closed up led by Consumer Staples (XLP) with +0.88%, while the downside leader was the Global 100 (IOO) sporting a loss of -0.60%.
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