After Market: S&P 500 Extends Winning Streak to 6 Days

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Stocks rallied Tuesday, but ended off session highs, again led by earnings and takeover news from the drug sector.

The Dow Jones industrial average (^DJI) rose 65 points, the Standard & Poor's 500 index (^GPSC) gained 7, and the Nasdaq composite (^IXIC) jumped 40 points. The Dow has five gains in a row, while the S&P and Nasdaq extended their winning streaks to six sessions.

The European health care firm Novartis (NVS) was at the center of a series of big deals. It bought GlaxoSmithKline's (GSK) cancer drug business for $14.5 billion, then sold its animal health unit to Eli Lilly (LLY) for about $5.5 billion. Let's check all three stocks -- Novartis gained more than 1 percent, Glaxo rose 4 percent, and Lilly fell 1 percent.

Meanwhile, Allergan (AGN), the maker of Botox, jumped 15 percent after receiving an unsolicited takeover bid from Valeant Pharmaceuticals (VRX) and activist investor Bill Ackman. Valeant rose 7 percent.

Speaking of Botox, there's a small company developing a new treatment for frown lines. Revance Therapeutics (RVNC) surged 25 percent on positive test results for the product. Biotech also stocks rallied, with a closely watched index gaining more than 3 percent.

On the earnings front, Cable-giant Comcast (CMCSA) gained 2 percent after topping expectations.

Also beating the Street: On the downside, McDonald's (MCD) edged lower. While the market has soared over the past year, the stock has marched in place, virtually unchanged from a year ago.

Kimberly-Clark (KMB) fell 2 percent after posting flat earnings, and Medidata Solutions (MDSO) tumbled 22 percent after missing expectations.

Elsewhere, investors were buying up retail stocks. Dillard's (DDS) gained 5 percent, Abercrombie & Fitch (ANF) added 3.5 percent, Quiksilver (ZQK) rose 4 percent, and Conn's (CONN) jumped 7.5 percent on word that investor David Einhorn bought a big stake.

But Einhorn, who runs Greenlight Capital, also issued a warning, telling his investors that we're in the midst of another tech bubble. He says his firm is now betting against some high-flying momentum stocks.

What to Watch Wednesday:
  • The Commerce Department releases new home sales for March at 10 a.m. Eastern time.
These major companies are scheduled to release quarterly financial statements:
  • Apple (AAPL)
  • Boeing (BA)
  • Brinker International (EAT)
  • Delta Air Lines (DAL)
  • Facebook (FB)
  • Procter & Gamble (PG)
  • Reynolds American (RAI)
  • Safeway (SWY)
-Produced by Drew Trachtenberg.


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teaparty2implode

d.barack,.......is a coward who fights with his key board.

April 23 2014 at 8:30 AM Report abuse -1 rate up rate down Reply
Trey

Congress and the President develop fiscal policy. That policy is in the form of legislation that has to be approved by Congress. Fiscal policy is federal spending that does create jobs.

April 22 2014 at 9:50 PM Report abuse +2 rate up rate down Reply
thefacts22

The market is not what is happening in USA.There are no jobs and much less a future,the dollar is fast becoming a worthless piece of paper.USA needs a real President with economic and business experience not a clown

April 22 2014 at 7:38 PM Report abuse +1 rate up rate down Reply
1 reply to thefacts22's comment
chris1011

The US needs a congress that will get off their collective butts and pass some jobs legislation. Presidents cannot originate legislation, that is the job of Congress, and it starts in the House. We need jobs bills that don't have poison pills embedded. Right now Congress critters spend less than 15 hours a week actually working on bills.

April 22 2014 at 8:19 PM Report abuse rate up rate down Reply
1 reply to chris1011's comment
progressivehoax

What the country needs is for the Government to get out of the way.

April 23 2014 at 1:36 PM Report abuse rate up rate down