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Nasdaq Rallies 1% As Indexes Stretch Win Streak

The stock market rose broadly Tuesday, building on its weeklong rebound. The Nasdaq and S&P 500 made it six gains in a row. The composite added 1% and the S&P 500 0.4%, although both shaved some gains in the final hour-and-a-half of trading. The small-cap Russell 2000 jumped 1.2%. Volume increased, adding to the positive tone of the day. Indexes have been rallying for about a week now, …

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Finisar, Signature Bank: Why A Top Fund Likes Them

RS Small Cap Growth Fund has taken to heart Greek philosopher Socrates’ advice: “Know thyself.”
After taking the tiller of the fund in 2007, the current managers looked in the mirror and asked themselves what their strengths and weaknesses are in the …

Harley-Davidson, Celanese Break Out Of Bases

The new high list expanded Tuesday with a number of stocks breaking out of bases.
Drugmaker Allergan (AGN) was already extended and at a new high when Valeant Pharmaceuticals (VRX) and investor William Ackman announced a buyout plan after Monday’s c…

Most Sector Leaders Nab Gains; GasLog Slips

Three of the four Sector Leaders mustered gains Tuesday as the general market stretched its win streak to six straight sessions. Valeant Pharmaceuticals (VRX) gapped up and rallied 9.40, or 7%, to 135.41 in huge turnover after officially announcing a proposal to buy Botox maker Allergan (AGN) with partner Pershing Square Capital Management. News of the bid first surfaced late Monday. Shares of …

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Drugmakers Prod European Stocks To Post-Easter Rally

European exchanges were high scorers on the world map Tuesday, as investors returned with vigor from the four-day holiday.

Germany’s Frankfurt Exchange led the pack, with the DAX index vaulting 2% higher. In Italy, Milano’s FTSE MIB punched up 1.5%. The Cac-40 in Paris surged 1.2%, while London’s FTSE 100 posted a 0.9% gain.

European markets rallied despite signs that Thursday’s agreement between Russia, Europe and the U.S. to ease rising tension in Ukraine was faltering. On Tuesday, Ukraine ordered resumption of anti-terror operations.

The massive and complex deal between Swiss drug giant Novartis (NVS) and the U.K.’s GlaxoSmithKline (GSK) was a centerpiece for the session. The two companies effectively restructured in a single swap. Novartis bought GlaxoSmithKline’s oncology unit for $14.5 billion. GlaxoSmithKline grabbed Novartis vaccine business for $7.1 billion. In a separate deal, Glaxo said it would receive $5.4 billion from Indianapolis-based Eli Lilly (LLY) for its animal-health business.

Glaxo rose 5% on the London exchange. Drugmakers Bayer (BAYRY) and Merck (MRK) were two of the day’s biggest movers in Frankfurt, up 4% each.

U.K.-based AstraZeneca (AZN) climbed 5% in London on reports that New York-based Pfizer (PFE) had approached the company last year with a $100 billion takeover offer. The talks have reportedly since ended.

The Financial Times quoted Mirabaud Securities’ Steve Clayton saying that a crucial point underlying Pfizer’s interest in the deal was avoiding tax penalties on U.S. companies repatriating overseas cash. An acquisition would have allowed Pfizer to avoid that hit while securing a new portion of the market.

In addition, two Ireland-based drugmakers, Shire Group (SHPG)and Jazz Pharmaceuticals (JAZZ), rose 6% and 5% in heavy trade, respectively, in the U.S. A Jefferies report named the two as possible takeover targets for Allergan (AGN), in the event that the California-based company attempts to fend off a hostile takeover attempt made public Monday by Pershing Square Capital Management and Valeant Pharmaceuticals (VRX).

The market also received an assist from the euro, held near a two-week low vs. the dollar by pledges from the European Central Bank to intercede if the single currency showed signs of strength.

Wall Street Braces For A Barrage Of Aerospace Reports

Concerns about cutbacks in defense spending occasionally weigh on names in IBD’s Aerospace/Defense group. Wall Street will get more color on the issue when several large-cap leaders in the group report earnings this week.
A few aerospace names curre…

WTI Drops Most In Three Months; Wide Discount

West Texas intermediate oil dropped the most in more than three months, widening the discount to Brent, on projections that a government report tomorrow will show that U.S. crude stockpiles climbed last week.
WTI fell 2.2%. Crude supplies increased …

Stocks Rise In Higher Volume; Gilead Up After Hours

Stocks rose in higher volume Tuesday, with the Nasdaq and S&P 500 notching their sixth straight gains amid a flurry of buyout activity in the drugs industry.
The Nasdaq rose 1%, while the S&P 500 and the Dow Jones industrial average each ros…

Leaders Sanchez, Synaptics Find Support, Set Up

Arkansas Best (ABFS) drove up to its fifth straight advance and its highest close in more than five years. The stock cleared the 36.06 buy point of a three-month base March 6, but didn’t make much headway right away. It’s found support in two pullba…

S&P 500, Nasdaq Rise For Sixth Day As Volume Picks Up

Stocks surged in higher volume Tuesday, with the Nasdaq and the S&P 500 rising for a sixth consecutive day, amid strength in drug stocks.
The Nasdaq rose 1% while the S&P 500 and Dow Jones industrial average gained 0.4% each. Volume was shar…