US stocks climbed on Tuesday with pharmaceutical and medical equipment stocks being some of the largest gainers. The S&P rose to a record high after receiving a boost from healthcare with the acquisition of Allergan by Actavis triggering bullish analyst notes.
Positive outlook from homebuilders as well as encouraging news from Germany and Japan assisted in lifting the markets.
According to ABC News, the S&P 500 Index gained 0.6% or 11 points to 2,053. The Dow Jones Industrial Average gained 0.35 or 57 points to 17,705 while the Nasdaq Composite gained 0.8% or 35 points to 4,706.
US Bank Wealth Management chief equity strategist said, ‘The broad equity market is in holiday mode. I don’t see the market moving meaningfully higher or lower in the near term until we get greater visibility on what consumers are going to do in the holiday season.”
On Monday, Allergan accept a takeover bid of $66 billion from Actavis Plc in stock and cash. Actavis shared climbed on Tuesday 5.3% to $261.16, being the top gainer of the S&P 500.
Reuters quoted Bruce Zaro, Bolton Global Asset Management chief technical strategist as having said, ‘There is more space for M&A, and companies are looking for areas to have growth. Healthcare stocks are doing well, but not as a defensive play and it is a positive that stock prices are strong and stocks are being used as currency.”
Medtronic, medical device maker was among some of the largest gainers in the S&P 500, adding 3.85 or $2.61 to $71.80.
Markets rallied in Europe after ZEW of Germany, a measure of investor sentiment indicated improvement in November after declining for 10 months. The DAX of Germany climbed 1.6% while France’s CAC 40 added 0.9%. The British FTSE 100 Index added 0.3%.
The Nikkei Index, Tokyo’s benchmark, gained 2.2% amid expectations that were later confirmed that Japan’s government would delay sales hike that were planned for next year.
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