High Tech Trading, Major Merger Drive Markets Up
Positive Outlook For Priceline And Amazon. Online mega-retailer Amazon (AMZN) and virtual travel agent Priceline (PCLN) both released positive preliminary Q1 earnings today.
Mylan And Perrigo Pharma Merger Sends Share Prices Soaring. News broke earlier today of a potential buyout in the health services sector. Mylan NV (MYL) would like to acquire the Perrigo Company (PRGO) in a multi-billion dollar deal. There is a complicating factor, with Teva Pharmaceuticals (TEVA) having made overtures recently indicating that it would like to acquire Mylan.
The offer on the table is still complicated and incomplete, but the fact that the health services sector is robust enough to support this sort of behind the scenes deal-making should be seen as a positive sign for the sector. Mylan (MYL) rose 8.78 points today, and closed at $68.36. Perrigo (PRGO) was up over 30 points to close the day's trading at $195. Teva (TEVA), which has largely been sitting on the sidelines today, gained 2.27 points to close at $66.52.
Retail Wages On The Rise. Recently, four major players in the retail and service sectors have announced that they'll be taking the initiative and raising their minimum wage regardless of Federal guidelines. McDonald's (MCD), Target (TGT), Walmart (WMT), and T.J. Maxx (TJX) will all be writing bigger paychecks in the coming quarter. It will be worth paying attention to the balance sheets of these four companies in particular to get a feeling for the direction that American wages are heading. If the experiment is a success, it could result in copycats companies and less wage stagnation for the entire American economy.
Prices At The Pump Could Stay Low Over The Summer. Every indication in the market right now points to cheap gas throughout the summer. Not only has the future price for unleaded gasoline fallen consistently this month, down almost 7% to just over $1.70 per gallon, but supply is set to exceed demand for the foreseeable future. The recent economic implosion in China and India, and their much slower financial recovery -- along with crude oil from Syria hitting the marketplace for the first time since 2011 -- mean that fuel prices are likely to stay low even considering increased summer demand.
Published on Apr 8, 2015By Aaron Phillips