Stocks were positive on mixed volume today as the Dow followed a jump in oil prices and closed up 113 points to 17,717. Markets are interesting these days as they have rebounded but the bearish short sentiment is at a multi year high.
Pfizer and Allergan officially called of their $160 billion merger this morning saying they were blindsided by the recent ruling from the US Treasury Department. Pfizer has more money overseas than every US company except Apple and their attempt to bolt to Ireland where the tax rate is 20% failed like a boat with holes. I wonder what they will do next or if Congress will address US corporate tax laws to bring them, as per the words of Apple CEO Tim Cook, “out of the dark ages”.
Oil prices shot higher after the US EIA reported US crude stockpiles fell by 4.9 million barrels last week. The drawdown was due to continued output hikes at refiners coupled with falling oil imports. The gurus had expected stockpiles to rise by 3.2 million barrels. Oil was also up thanks to speculation that the April 17th meeting of oil producers will bear fruit. WTI closed the day up about 5% to $37.65 an ounce.
Gold pulled back a bit after the release of the latest Fed meeting minutes. Gold closed at $1,224 off $5.60 an ounce.