Continued optimism of a resolution to the Greek debt crisis, and some stability in the price of oil on the first day of the new earnings season, pushed U.S. markets higher again Tuesday.
Greek’s parliament now has until Wednesday evening to approve the legislation necessary for another bailout, so that Greece can make its repayment to the European Central Bank by Monday.
Greece was not the only bright spot. The signing of a nuclear pact between Iran and six nations lifted oil prices up above $53 again. Chinese markets, however, fell 1%, after rising over three consecutive days.
But bad news was good news for those watching the Fed, as the National Federation of Independent Businesses said that small business confidence fell 4.2 points in June to 94.1, the lowest level since 2014. The number puts businesses right in the middle between growth and recession, and promotes the idea of slow growth that could stave off a Fed interest rate increase in September.
The Dow Jones Industrial Average and S&P 500 were both 0.4% higher, while the Nasdaq gained 0.6%. Among sectors, most were showing gains, and healthcare was the greenest of all.
A couple of shaky stories about acquisitions boosted Twitter Inc (NYSE:TWTR) and Micron Technology, Inc. (NASDAQ:MU), and these stocks, along with Sprint Corp (NYSE:S), are 3 of today’s best stocks.
Twitter Inc (TWTR)
Investors were tweeting like crazy on Wall Street today after a phony story on a fake website about a totally egregious $31 billion bid for Twitter sent TWTR stock blasting higher this morning. TWTR shot up over 8% before pulling back to finish more than 2% higher by the closing bell.
The fake story appeared on a makeshift Bloomberg website, and stated that Twitter was working closely with bankers after receiving a $31 billion purchase offer. The story was also reported on all of the major financial shows before it was finally refuted by both TWTR and Bloomberg.
A lot of money may have been lost because of this phony story, and somebody may be going to jail for fraud and market manipulation before all is said and done.
Sprint Corp (S)
Sprint dialed up a nearly 8% gain after its prepaid-focused subsidiary, Boost Mobile, launched Netgear Fuse, which when combined with its Wi-Fi Hotspot plans, offers consumers a no-contract deal. The device will give subscribers Internet access from anywhere within the Sprint network, with prices ranging from $25 to $50 per month, depending on the amount of data.
Hot spots are nothing new, but this device has several new features, including allowing users to connect up to 10 devices to it at once, and it contains a tiny battery that can last up to 10 hours.
Micron Technology, Inc. (MU)
Recent acquisitions, both real and imagined, have driven many stocks higher in recent months, with all parties benefiting. Today was no different, as in addition to TWTR, MU stock blasted 11% higher after receiving consideration for a $23 billion offer from China’s Tsinghua Unigroup Ltd, even as Wall Street analysts were dismissing it as being a “low-ball,” non-serious bid.
Analysts said MU is worth $38 billion, so the offer was regarded as nothing more than a starting point. However, any deal between these parties would still require approval by the Committee on Foreign Investment in the United States. There are obvious security concerns for a deal where a Chinese state-run company would purchase a firm producing DRAM and NAND memory chips used in a multitude of electronic equipment.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
