The View from 5th Avenue

The View at Two – 14 December 2020

Dickensian Distortion –Russell 2000 new all-time highs. Dow new all-time highs. Granted US stocks have pared gains since this morning, but it doesn’t seem as though investors are ready to part ways with 2020 markets just yet. Between the spending bill inching ever closer and the potential for vaccine success, there is still much to be done before funds close their books on 2020. Not to mention, the Fed, BoE and BoJ later this week. Further, the Nasdaq didn’t even blink at a report that tech giants could face fines by the EU of up to 10% of their revenues, and deal mania continues to bring the action. Today’s top: AstraZeneca (-5%) agreed to buy Boston based Alexion Pharma (+30%) for a cool $39bill. Also, Pluralsight rose 6% after private-equity firm Vista Equity Partners agreed to buy the educational-software maker. The semis are leading thanks to Marvel (+3.5%) after brokers raised their targets and the stock was added to the Nasdaq 100. The sector lagging is Energy, thanks to Oil, which slipped into negative territory after OPEC cut its demand forecast, but has just recovered to + 30bps in to the green. SandRidge (SD +21.5%) is the big name of note -- 20% higher after announcing the sale of its assets in Colorado to an unnamed buyer for $47m. NBD.

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