Monday’s early rally led many sectors higher on news of takeovers across the board.
Arch Coal (ACI) was up nearly $2 in early trading, Crystallex International (KRY) hit a new 52 week high today at $5.05, Goldman Sachs (GS) continues to move up.
Overall there is good sentiment on Wall Street and the news of Goldman Sachs’ private equity group is acquiring Alltel in a deal worth roughly $25 billion. GE is selling it’s plastic division to Saudi Basic Industries for $11.6 billion.
The M&A activity since early 2007 has created a surge in the Dow Jones Industrials which for a lot of investors is positive news. Much of the investments in mutual funds would be affected by moves in the DJIA. Earlier in the month, Rupert Murdoch’s bid for DJ caused a flurry of activity in the stock, but rumors on the street are that the talks have halted.
I believe today’s action is an indicator for the week. Record highs are going to continue to be set this week so if you are in the money, remember to take a little off the table especially if you have already hit your target.
At the time of publication, Mr. Wilcox was long GS, ACI and KRY
