The stock market is now on a six-day winning streak.
First, the scoreboard:
- Dow: 16,514.3 (+65.1, +0.4%)
- S&P 500: 1,879.5 (+7.6, +0.4%)
- Nasdaq: 4,163.1, (+39.9, +0.9%)
And now the top stories:
- The hedge funds made a lot of noise today.
- Bill Ackman's Pershing Square Capital disclosed a 10% stake in Allergan, Inc., a pharmaceutical company which Pershing intends to takeover with Valeant Pharmaceuticals. Valeant's offer consists of $48.30 in cash and 0.83 shares of Valeant for each share of Allergan. "This proposal represents an undeniable opportunity to create extraordinary value for both Allergan and Valeant shareholders by establishing an unrivaled platform with leading positions in ophthalmology, dermatology, aesthetics, dental and the emerging markets," said Valeant CEO Michael Pearson. Allergan shares surged 15% today.
- Other big biotech stocks, which have been beaten up in recent weeks, rode on the coattails of Allergan's rally. Among the leaders in the S&P 500 were Alexion Pharmaceuticals (+3.3%), Regeneron Pharmaceuticals (+3.3), and Biogen Idec (+2.7%).
- David Einhorn's Greenlight Capital revealed new long positions in Conn's Inc and SunEdison, which saw shares rally 7.5% and 11.6% respectively. Meanhwhile, it also closed its short position in Chipotle Mexican Grill.
- Einhorn offered some macro thoughts on the markets. "Now there is a clear consensus that we are witnessing our second tech bubble in 15 years,"he wrote. "What is uncertain is how much further the bubble can expand, and what might pop it. In our view the current bubble is an echo of the previous tech bubble, but with fewer large capitalization stocks and much less public enthusiasm. Some indications that we are pretty far along include: The rejection of conventional valuation methods; Short-sellers forced to cover due to intolerable mark-to-market losses; and Huge first day IPO pops for companies that have done little more than use the right buzzwords and attract the right venture capital."
- Netflix surged 6% today. On Monday afternoon, the company announced Q1 financial results that beat analysts' expectations. Management also announced that it would be raising the price of new monthly subscriptions by $1 to $2.
- Don't Miss: CITI: Here Are The 20 Best Stocks In America »