Monday, June 9, 2014

Markets inch higher on acquisitions

Dow, up 11, is crawling to another record, advancers ahead of decliners 3-2 & NAZ added 9.  The MLP index was flattish in the 503s & the REIT index fell 3+ to the 302s.  Junk bond funds slid lower & Treasuries continued to see selling.  Oil crude advanced on signs of stronger global economic growth & concern that political tension in Libya will disrupt supplies.  Gold inched higher.

AMJ (Alerian MLP Index tracking fund)

CLN14.NYM...Crude Oil Jul 14....104.34 Up ...1.68 (1.6%)

Live 24 hours gold chart [Kitco Inc.]

Facebook's photo-sharing application Instagram will add advertising in Canada, the UK & Australia later this year as CEO Mark Zuckerberg seeks to generate more sales from mobile users.  The application, acquired for about $700M in 2012, started to gradually introduce advertising 6 months ago to avoid alienating its user base, which now includes more than 200M members.  FB is aiming to make more money off its intl users, which make up the majority of members.  Instagram ad sales will be a key part of its mobile strategy, which now includes several applications such as Messenger & Paper, & messaging program WhatsApp after the $19B acquisition closes.  “The results for advertisers have been positive -- and in some cases, well above the ad industry’s average for performance,” FB said in the blog post.  “We’re excited to build on this momentum, and in the coming months we will extend the same level of care and consideration as we introduce ads on Instagram to our global community.”  The stock was up chump change.  If you would like to learn more about FB, click this link:

Facebook (FB)

Merck, a Dow stock, agreed to buy Idenix Pharmaceuticals (IDIX) for about $3.85B to expand its experimental pipeline for hepatitis C treatments.  IDIX holders will receive $24.50 a share in cash, more than triple the closing level on Fri of $7.23.  The premium is a record for health-care deals larger than $100M.  The acquisition will help MRK in the race to develop a daily, all-oral regimen that treats different strains of the viral infection & doesn’t include ribavirin, a standard treatment for hepatitis C that has serious side effects.  In Apr, MRK said its once-a-day hepatitis C pill, which combined 2 drugs, stopped the virus in a mid-stage study in 98% of newly treated patients with few major side effects.  “We’ve been talking with Idenix for a long time, & have a long history in this field,” said the pres of Merck Research Laboratories.  MRK stock is even & IDIX shot up to about $24.  If you would like to learn more about MRK, click this link:

Merck & Co. Agrees to Buy Idenix for $3.9 Billion for Hepatitis C Drugs

Merck (MRK)

Little is going on in the markets.  Acquisitions, especially with big premiums, help bring out stock buyers.  In addition, there is a lot of optimism of improving economies on China & Europe.  Sorry, but I have to leave a little early today, am not able to catch to close.  In the final hour, little price movement is expected.

Dow Jones Industrials

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