After Market: A Nice Rebound After Last Week's Weak Showing

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Citigroup grabbed the spotlight Monday -- for reasons both positive and negative -- while Wall Street continued its march higher as earnings season started to kick into high gear.

The Dow Jones industrial average (^DJI) gained 111 points, the Nasdaq composite (^IXIC) rose almost 25 points and the Standard & Poor's 500 index (^GPSC) was up by 9 points.

All eyes were on Citigroup (C) on Monday. The bank agreed to pay $7 billion to settle charges related to mortgages it sold before the financial crisis, and it also beat on earnings. The stock closed 3 percent higher. This week is jam-packed with banks coming out with their results. Bank of America (BAC) and JPMorgan Chase (JPM) were up around 1 percent ahead of releasing their results.

Some acquisition activity boosted other stocks. Pharma company Mylan (MYL) is buying part of Abbott Laboratories' (ABT) business for $5.3 billion in stock. Mylan gained 2 percent and Abbott was higher by more than 1 percent.

Engineering firm URS (URS) is going to be acquired by rival Aecom Technology (ACM) in a deal valued at around $4 billion. The news sent both stocks sharply higher. URS gained 12 percent and Aecom was up 10 percent.

Energy company Whiting Petroleum (WLL) rallied more than 7.5 percent on news it is seeking to buy Kodiak Oil & Gas (KOG). Whiting has been on fire this year. Its stock has risen 36 percent year to date. In other energy M&A news, oilfield services company Weatherford (WFT) International is selling its Venezuelan and Russian assets to Russia's Rosneft. Weatherford was up 2.5 percent.

And a report in an Israeli newspaper that drugmaker Perrigo (PRGO) might be on the auction block sent its stock higher by more than 8.5 percent.

Elsewhere in deal news, British soccer team Manchester United (MANU), which is a publicly traded company in the U.S., rallied more than 4 percent on news that Adidas will be sponsoring the team for 10 years and paying them $130 million a year for the honor. It will be the largest uniform sponsorship deal in history.

Apple (AAPL) got a 1 percent boost from an upgrade at Barclay's. EBay (EBAY) fell half a percent on a downgrade and TripAdvisor (TRIP) dropped less than 1 percent on a downgrade as well. But the downgrade to neutral from Nomura is mainly because the TripAdvisor has had a 25 percent run up since the beginning of the year.

-Produced by Karina Huber.

What to Watch Tuesday:

  • At 8:30 a.m. Eastern time, the Commerce Department releases retail sales data for June; the Federal Reserve Bank of New York releases its latest survey of manufacturing conditions in New York state; and the Labor Department releases import and export prices for June.
  • The Commerce Department releases business inventories for May at 10 a.m.
These major companies are due to release quarterly financial statements:
  • Cintas (CTAS)
  • Comerica (CMA)
  • Commerce Bankshares (CBSH)
  • CSX (CSX)
  • Goldman Sachs (GS)
  • J.B. Hunt Transport Services (JBHT)
  • Johnson & Johnson (JNJ)
  • JPMorgan Chase (JPM)
  • Pinnacle Financial Partners (PNFP)
  • Yahoo (YHOO)

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drbuckles

Just think if they raised taxes how great our ec0nomy would be. We are suffering from the Bush tax cuts and too big to fail banks ******* the life out of the economy.

These were: the Harding / Coolidge tax cuts of 1921 through 1926; the Reagan tax cuts of 1981; and the Bush tax cuts of 2002. The results of each one of these tax cuts was exactly the same: “all three experiments resulted in the average American becoming poorer, the real (industrial) economy in tatters, and spectacular financial crashes.”
From the three Republican tax cut experiments this past century, it appears the length of time for this to happen is five to seven years.

July 14 2014 at 8:48 PM Report abuse rate up rate down Reply
Iselin007

Lighting does strike near the same spot more than once just hope the bulls can out run those hamburger rolls. Bears aren't picky who they eat.

July 14 2014 at 7:48 PM Report abuse rate up rate down Reply
Frank

For all the "strength" in the markets, I'm still waiting for full time jobs, benefits and a decent wage.

July 14 2014 at 5:59 PM Report abuse +2 rate up rate down Reply
1 reply to Frank's comment
Iselin007

Frank's right the lack of wage growth, decent jobs ect is what's missing. Wall Street isn't the average person who got left behind.

July 14 2014 at 7:35 PM Report abuse rate up rate down Reply