Stocks Snap Losing Streak, Spurred On by Buyouts
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A bevy of buyouts snapped stocks out of their recent doldrums and drove the broad market higher Monday.
The Dow Jones Industrial Average rose 119.51, or 1%, to 12,105.55, regaining all of last week’s losses. The Nasdaq Composite Index gained 35.16, or 1.5%, to 2,365.95, and the Standard & Poor’s 500 Index rose 15.48,or 1.1%,to 1379.78.
It helped that stocks were coming off their “first down week in five weeks,” the chief market analyst at Jefferies, Art Hogan, said, but investors were likely focusing on two factors: “the plethora of M&A activity, and the realization that [today’s] election is going to cause gridlock, which is a very positive scenario” for stocks.
The string of buyouts announced Monday raises the question of “how much money is out there and how many companies are targets to be taken private,” Mr. Hogan said.
“There’s a lot of spaces that are going through consolidation,” he noted. “It’s not just software anymore.”
