The markets started off the week on a positive note thanks in part to a broad-based, cyclical rally. The Dow 30 was still held back by Boeing, but closed the day higher by 65. The S&P 500 closed higher by 10 and the Nasdaq added 25 on the day. This week offers a handful of earnings, as well as a Fed meeting that could steal all attention mid-week.
Sector News
Communication Services sold off today mostly on the weakness in Facebook (FB ). The sector has recently moved above a long, wide range that started back in early January. The sector is higher on the year by about 12%.
The oil strength continues today as oil bounced about 1%. Last week it was announced that Saudi Arabia would continue its production cuts into April following their March cuts. This along with sanction effects in Venezuela and Iran have helped support prices in the short term.
Banking stocks finally pushed above their stubborn resistance area today. For the month of March, the financials have struggled to get above the 200-day moving average, along with some price resistance from February.
Stock News
Boeing (BA ) shares once again dragged down the Dow today as the Department of Transportation and a Grand Jury in Washington are reportedly investigating the FAA approval of the 737 Max jets. Shares moved back towards lows set last week following the most recent crash involving Ethiopian Airlines.
Worldpay (WP ) shares blasted off today as it was reported that Fidelity National Financial (FIS ) would be buying the company for about $35 billion in cash and stock minus debt. Investors will be getting about $11 in cash plus shares of FIS when the deal closes. FIS shares initially broke out to new highs on the news.
Caesars Entertainment (CZR ) shares were higher on the day following news that they are in early stages of working on a merger with Eldorado Resorts (ERI ). This is largely seen as a win for Carl Icahn, who recently took a large position in the company and nominated three of his board members.
