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Pence Wealth Management Financial Markets Report


U.S. stocks were little changed at the openon Monday, as a rash of corporate deals barely pushed major indexes up and the S&P 500 and Dow industrials continued to trade near historic highs.

  • The S&P 500 advanced 1.3 percent to a record 1,949.44 last week.
  • Appletraded around $92, reflecting a seven-for-one stock split.
  • Time Inc. spinoffs from Time Warner. Time Inc. shares will use the ticker symbol TIME, while Time Warner, which owns the Warner Bros. movie studio and cable networks such as HBO and CNN, will continue using its ticker TWX.

Ackman says Allergan holders back takeover at $180/shr.

  • Allergan shareholders have told that they would support a deal at $180 per share.
  • Allergan rejected that first offer and Valeant responded by raising its offer on May 28 to about $163 per share. 

Merck to buy Hepatitis-drug maker Idenix for about $3.85 billion.

  • The price is more than triple Idenix’s closing level.
  • Idenix’s lead drug works similarly to Gilead Science’s Sovaldi, which won U.S. regulatory in December and costs $84,000 for a 12-week course of treatment. 

Tyson wins bidding war for Hillshire Brands.

  • Tyson said that it would offer $63 per share for Hillshire, a premium of nearly 7 percent to Hillshire’s closing price on Friday, valued at $8.55 billion including debt.
  • Pilgrim’s Pride raised its offer last week to $55 per share from $45, valuing Hillshire at $7.7 billion including debt.

Amazon expands middleman role in latest online payments push.

  • will start managing subscription payments for start-ups and other companies.
  • The service will allow the company’s more than 240 million active users to use credit card details stored on to pay for services such as a monthly phone bill or a digital music subscription. Amazon then charges a fee on each transaction.
  • EBay’s PayPal has long dominated online payments services but Amazon sees plenty of scope to push into new areas.

American Energy Partners to buy $4.25 billion of US shale assets in Texas, Ohio and West Virginia.

  • The company said it expects to buy more properties in the region.

Uber snags $1.2 billion in new funding; seen valued at $18 billion.

  • Uber has raised $1.2 billion from mutual funds and other investors in a funding round.
  • Fidelity Investments put in about $425 million, Wellington Management added $209 million and BlackRock contributed $175 million.
  • Uber originally started with a luxury town-car service, but in many cities has since added UberX, a low-frills service with nonprofessional drivers using personal cars.

Icahn reports 9 percent stake in Family Dollar Stores.

  • Family Dollar, which has trailed rivals such as Dollar General and Dollar Tree, said in April it would close 370 stores and slow its expansion of new stores.


U.S. consumer credit surges on increased credit card use.

  • Total consumer credit increased by $26.85 billion to $3.18 trillion, the Federal Reserve said.
  • That meant consumer debt was growing at a 10.2 percent annual rate, the fastest pace of growth since July 2011.
  • Revolving credit, which mostly measures credit-card use, jumped by $8.8 billion. Americans had not added that much revolving debt in any one month since November 2007.
  • Non-revolving credit, which includes auto loans as well as student loans made by the government, rose $18.0 billion in April.

Fed’s Bullard says macro-economy much closer to normal.

  • He pointed out that despite encouraging signs of growth in the U.S. economy, the fed funds rate remains near zero and the central bank’s balance sheet is large and growing.
  • Last month, Bullard said that while the housing and labor markets remain weak, he expects recovery through the rest of the year, and said inflation would likely move towards the Fed’s desired 2 percent rate.

Obama to issue order easing student loan debt pressures.

  • Obama will issue an executive action on Monday aimed at making it easier for young people to avoid trouble repaying student loans.
  • The order will ensure that students who borrowed federal direct loans be allowed to cap their loan payments at 10 percent of their monthly incomes.


World stocks inch towards all-time high.

  • European markets were on the front foot again, looking for their 10th straight week of gains after last week’s bumper set of easing measures from the ECB.
  • MSCI’s All-World share index, which encompasses 45 countries and is generally seen as benchmark of global stocks has risen almost 150 percent since the 2009, just below its 2007 pre-financial crisis peak of 428.63 points.

Japan’s economy picks up speed on unexpected surge in capex.

  • Japan’s economy grew an annualized 6.7 percent in the first quarter. It beat the median market forecast for GDP to rise 5.6 percent.
  • Corporate capital spending rose 7.6 percent, up from a preliminary 4.9 percent increase.

China’s May exports gain steam but imports fall unexpectedly.

  • Exportsrose 7 percent in May, while importsfell 1.6 percent.
  • China’s trade surplus widened sharply to $35.9 billion in May from April’s $18.5 billion.

Lagarde says IMF ‘Got It Wrong’ on rallying U.K. economy.

  • “We acknowledged it. Clearly the confidence building that has resulted from the economic policies adopted by the government has surprised many of us.”
  • U.K. economy will grow 2.9 percent this year, the fastest pace among the Group of Seven nations.

Iraq to stay ahead of Iran for now in rivalry for OPEC No.2 spot.

  • Baghdad got off to a galloping start this year, ramping up production to 3.4 million barrels per day (bpd) and lifting exports to a record 2.8 million bpd in February, nailing its position as OPEC’s second-biggest producer behind Saudi Arabia.
  • Baghdad is targeting about 4 million by year-end including the autonomous northern Kurdish region.
  • Iran, more confident after a partial lifting of Western sanctions, has squeezed out more oil to pump 2.8 million bpd. 
  • Oil experts say rates could surge to 3.5 million bpd within six months of Tehran being fully unshackled.

Iranian President visits Turkey first time in 18 years.

  • The two countries seek to double annual trade to $30 billion by 2015.
  • The two governments reached agreement to link the railway network between the neighbors and improve cooperation in banking.

Cyber-crime costs global economy $445 billion a year.

  • The report from the Center for Strategic and International Studies (CSIS) said cyber-crime was a growth industry that damaged trade, competitiveness and innovation.
  • About 40 million people in the United States, roughly 15 percent of the population, has had personal information stolen by hackers, it said, while high-profile breaches affected 54 million people in Turkey, 16 million in Germany and more than 20 million in China.


  • China agreed to lease Hong Kong to Britainfor 99 years (1898)
  • Donald Duckmade his screen debut in The Wise Little Hen (1934)
  • Secretariatwon the Belmont Stakes and became the first Triple Crown winner in 25 years (1973)

This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly. Sources: Reuters, Bloomberg.

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