Bulls are back as stock market rallies
July 24, 2006 – 9:35 pmIf you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Investors were very excited today about the buyout of HCA. HCA is being taken private, and bulls are upbeat about earnings in multiple sectors, and the buyout of ATI by AMD:
The acquisition news relieved investors concerned about a weakening economy. Corporate buyouts typically signal optimism over economic growth; a profit warning from Dell Inc. late last week dimmed the near-term outlook and dragged the Nasdaq composite index to a 14-month low.
Drugmakers led the brigade of companies reporting increasing earnings. All in all, the market reacted extremely positively to the good news it heard today. Sentiment could go out the window in a hurry if the situation in the Middle East deteriorates even more. Oil is high and threatening to go higher.
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