US shares rose on Monday, buoyed by the latest rise in merger & acquisition activity and earnings report from Citigroup, setting the Standard & Poor’s 500 on course for its second straight gain.
Pharmaceutical Shire Plc, which is listed in London, expressed willingness to recommend acceptance of a boosted 31 billion pounds ($53 billion) takeover bid from Abbvie Inc., bringing to conclusion a long-drawn out courtship that for the most part eyed better tax rates. Shire shares listed in the US advanced 1.4% to $252.48 while Abbvie lost 1.2% to $54.30.
Generic pharmaceutical MylanInc announced intentions to buy a specialty and branded generics unit owned by Abbott Laboratories outside of the US in an all-stock deal worth about $5.3 billion.Mylan stock climbed 2.7% to $51.55 before opening of markets. Abbott shares added 1% to $41.72.
Citigroup Inc. stock added 3.4% to $48.59 to lead best performers in the S&P 500 after it announced second-quarter earnings and reached a deal to settle a US government probe into mortgage-backed securities. A measure of financial firms in the S&P climbed 0.8%.
According to Trending Tidings, Apple Inc. went up 1.7% after investors were advised by Barclays Plc to buy the company’s shares.
Analyst David Kostin Goldman Sachsadjusted upwards his 2014 projection for the S&P 500 to 2,050 from 1,900 because of anticipation that yields on the 10-year Treasury note will hover near 3% and will continue to send investors into shares as they pursue higher returns.
“We have Citi earnings coming out positively, that’s giving us a little spark. Continued M&A would more than likely propel sentiment, and we got Goldman raising their S&P target for year-end. A confluence of events has set us up for continued upside,”Andre Bakhos of Bernardsville, New Jersey-based Janlyn Capital LLC is quoted by Reuters as saying.
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