U.S. markets opened higher this morning and continued their ascension thereafter on news that Zhou Xiaochuan, the governor of the People’s Bank of China, made comments over the weekend that indicated further economic stimulus to ward off deflation.
Elsewhere, the National Association of Realtors (NAR) said that pending home sales rose 3.1% from January to February, as sales in the West and Midwest were strong, while personal income and consumer spending also rose. The result?
The Dow Jones Industrial Average finished 1.49% higher while the S&P 500 rose 1.22% and the Nasdaq was 1.15% to the upside. Among the best stocks of the day were Dynergy Inc. (NYSE:DYN), Catamaran Corp (USA) (NASDAQ:CTRX) and Cellular Dynamics International Inc (NASDAQ:ICEL).
Dynergy Inc. (DYN)
DYN stock had a great day, up 9% on more than 6 million shares after gaining approval from the Federal Energy Regulatory Commission to complete its $6.25 billion acquisition of Duke Energy Corp’s (NYSE:DUK) commercial and retail businesses in the Midwest, and two smaller businesses from Energy Capital Partners. The deals are expected to close between April 1-2.
DYN stock has been in a downtrend since early November, but looks to have broken through that trend line today, and is back above its 200-day moving average.
Catamaran Corp (USA) (CTRX)
Catamaran stock gapped up more than 23% today on 41.4 million shares after UnitedHealth Group Inc. (NYSE:UNH) agreed to purchase the pharmacy benefits manager for approximately $12.8 billion. According to the terms of the agreement, UnitedHealth will pay $61.50 per share with cash and some debt.
The deal with help UNH increase its drug-benefits business so it has more power to negotiate lower costs with pharmaceutical companies, especially for drugs needed to survive life-threatening diseases.
UNH stock, which has seen very steady growth over the past two years, was up more than 2% on the news.
Cellular Dynamics International Inc (ICEL)
Cellular Dynamics stock blasted up 107% today to lead all stocks after Fujifilm Holdings Corp. (ADR) (OTCMKTS:FUJIY) said it will acquire Cellular in an all-cash tender offer, which will then be followed by a second-step merger.
Fujifilm will pay $16.50 per share, or about $307 million, after which ICEL will continue to run its business as a consolidated subsidiary.
ICEL stock has been in a slow yet steady downtrend since the beginning of 2014. The deal with Fujifilm is scheduled to close no later than April 6.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
